Tesco Supply Chain Report

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Report: Has Improvement Of Retail Logistics Made Us Loyal Customers
1.0: Introduction
In this report I will be analysing how the retail logistics of Argos and Tesco has influenced us to stay loyal customers to the companies. Due to the lack of time given I have only been able analyse two retailers however if I had more time I could’ve analysed retail logistics further.
Supply Chain Management:
Supply chain management is the flow system into the organisation. There are two flows within the supply chain, physical and information flow. The physical flows in the opposite direction information flow. Supply chain management involves aspects of inventory, distribution, purchasing and supply. (Wild, 2001)
Tesco’s and Argos are two very different
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Distribution was centralised so that all business activities involving the distribution of goods to stores was done from all depots connected to computer network so everyone could keep an eye on it to see what was happening throughout and manage the supply chain more carefully. Tesco was focusing on to a build a foundation for vertical collaboration within the supply chain. (IGD, 2010)
3.1.3: They are main leaders who are using bio fuels to help the environment and reduce carbon emissions whilst transporting goods and doing daily business operations. (TESCO PLC, 2014) They transport goods using the rail network and they are using fuel which doesn’t harmful carbon emissions.
Tesco quoted there main purpose is to “create value for customers to earn their life time loyalty” (TESCO PLC, 2014)
3.1.4: Tesco’s overall logistics has impacted on customer loyalty massively because there has been a slump in profits and sales over the last few years. (ROBINSON, 2014) Tesco sales figures have down by 6% in the last twelve months and shoppers are going to other supermarkets in the big four. (ROBINSON,
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Available at: http://supplychainanalysis.igd.com/Hub.aspx?id=15&tid=1&rid=2
[Accessed 1ST AUGUST 2014].
INMAN, P., 2014. THE GUARDIAN. [Online]
Available at: http://www.theguardian.com/business/2014/jan/17/high-street-sales-jump-unexpected-christmas-surge
[Accessed 2ND AUGUST 2014]. logistics, T., 2008. total logistics. [Online]
Available at: http://www.total-logistics.eu.com/logistics-clients/logistics-clients-portfolio/portfolio-argos.html
[Accessed 1st August 2014].
NEWS, B., 2013. Home Retail Group reports Argos sales rise. [Online]
Available at: http://www.bbc.co.uk/news/business-22363631
[Accessed 28TH JULY 2014].
ROBINSON, M., 2014. Tesco posts falling profits for the second year running as shoppers head to rivals. [Online]
Available at: http://www.dailymail.co.uk/news/article-2605772/Tesco-annual-profits-slump-150m.html
[Accessed 3RD AUGUST 2014].
Available at: http://www.tescoplc.com/index.asp?pageid=17&newsid=960
[Accessed 26TH JULY 2014].
Wild, R., 2001. essentials of operations management. 5th ed. henley on thames : cengage learning

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