Tesco is the UK’s largest food retailer, with a sales turnover of more than 67.5 billion. While it has some 638 stores in central Europe, and some 636 in the Far East, most are in the United Kingdom and Northern Ireland, where it has nearly 1,800. This number has increased rapidly as Tesco entered the convenience store market with deals such as the Tesco Express alliance with Esso to run grocery shops at petrol stations. The product range held by the stores has grown rapidly in recent years, and currently stands at 65,000 stock-keeping units (skus) depending on the size of the store as Tesco broadens its presence in the ‘non-food’ market for electrical goods, stationery, clothing and the like. This massive range is supported by 3,000 suppliers, who are expected to provide service levels (correct time and quantities) of at least 98.5 per cent by delivering to Tesco within half-hour time ‘windows’. Volumes are equally impressive. In a year, some 2.5 billion cases of product are shipped from suppliers to the stores.
Tesco states that its core purpose is ‘to create value for
customers to earn their life- time loyalty’. Wide product range and
high on-shelf availability across that range are key enablers of
that core purpose. So how do you maintain high availability of so
many skus in so many stores? This question goes to the heart of
logistics management for such a vast organisation. Logistics is
about material flow, and about information flow. Let us look at how
Tesco deals with each of these in turn.
Tesco operates Composite distribution centres (called regional
distribution centres, RDCs), which can handle many products at
several temperature ranges. The opportunity is to provide a
cost-effective daily delivery service to all stores. Typically, a
composite distribution centre can handle over 60 million cases per
year on a 15-acre site. The warehouse building comprises 25,000
square metres divided into three temperature zones. Each
distribution centre (DC) serves a group of between 100 and 140
retail stores. Delivery vehicles for composite depots can use
insulated trailers divided into chambers by means of movable
bulkheads so they can operate at different temperatures. Deliveries
are made at agreed, scheduled times. Ambient goods such as cans and
clothing are delivered through a separate grocery distribution
network which relies on a stocked environment where orders are
picked by store. This operation is complemented by a strategically
located trunking station which operates a pick to zero operation
for fast-moving grocery on merchandise units that can be placed
directly on the shop floor.
So much for the method of transporting goods from supplier through
to the stores, but how much should be sent to each store? With such
a huge product range today, it is impossible for the individual
store to reorder across the whole range (store-based ordering).
Instead, sales of each product line are tracked continuously
through the till by means of electronic point of sale (EPOS)
systems. As a customer’s purchases are scanned through the bar code
reader at the till, the sale is automatically recorded for each
sku. Cumulative sales are updated every four hours on Tesco
Information Exchange (TIE). This is a system based on Internet
Protocol that allows Tesco and its suppliers to communicate trading
information. The aim of improved communication is to reduce
response times from manufacturer to stores and to ensure product
availability on the shelf. Among other things, TIE aims to improve
processes for introducing new products and promotions, and to
monitor service levels.
Based on the cumulative sales, Tesco places orders with its
suppliers by means of electronic data interchange (EDI). As volumes
and product ranges increased during the 1990s, food retailers such
as Tesco aimed to destock their distribution centres by ordering
only what was needed to meet tomorrow’s forecast sales. For
fast-moving products such as types of cheese and washing powders,
the aim is day 1 for day 2: that is, to order today what is needed
for tomorrow. For fast-moving products, the aim is to pick to zero
in the distribution centre: no stock is left after store orders
have been fulfilled and deliveries to stores are made as soon as
the product is picked, which increases the stock availability for
the customer. The flow of the product into the distribution centre
is broken into four waves and specific products are delivered in
different cycles through the day. This means that the same space in
the distribution centre can be used several times over.
Source: Harrison,A & Van Hoek,R. (2014). Logistics Management
& Strategy Competing through the Supply Chain. Fifth Edition.
Prentice Hall International Edition
Question 1
Describe the key logistics processes and supply chain functions
used to create value for Tesco’s global supply chain.
Question 2
Differentiate between Tesco’s logistics and marketing channels and
the important role in managing their vast product range and
customer base.
In: Operations Management
Public Opinion. Answer the following questions about the public relations campaigns you read about in the third and fourth e-Activities. Attitudes are based on a number of characteristics. Elaborate on how public relations can take advantage of one of these characteristics to shape public opinion. Describe and explain at least one example of how this characteristic was a focus of the selected public relations campaign. One goal of public relations is to manage public opinion on a particular topic. For the public relations campaign you selected, analyze the methods used to shape public opinion. Justify why you think these methods were either successful or unsuccessful.
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Research the knowledge and competencies of an enrollment management professional. Share these competencies in paragraph form, using appropriate headings and indicate which of these competencies and/or knowledge areas are most important today and may change for the future of enrollment management professionals.
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Discuss a number of traditional and contemporary theories of communication. Choose one of these theories and explain in detail how this theory can guide a public relations campaign. Provide at least one example of how this theory has been used in a current public relations campaign.
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project management project
the subject is " what are important project management obstacles- technical, human and legal?"
The project should not lack the use of numerical decision model with, and a detailed Gantt chart, CPM or PERT to say the least.
the report should include all plans (schedule, risk plan, communication plan, budget, Time Plan, etc)
references are required also
In: Operations Management
1. What is branding for? Give an example to clarify your answer and explain.
What’s private brand? What’s the purpose(s) of private brand.
2. Explain the primary difference between a wholesaler and sales agent. Who has more active
roles in finding customers and customers’ wants?
3. Let’s say, after 15% increase in selling price, a burger shop found 5% drop in number of sales of burger. Is the demand for burger sensitive to changes in price this case? What do you recommend to keep or increase sales revenue?
In: Operations Management
A convenience store recently started to carry a new brand of soft drink. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. The following table provides the number of cans sold per week. Use both the trend projection with regression and the exponential smoothing (let
alpha=0.4
with an initial forecast for week 1 of
578)
methods to forecast demand for week
13.
Compare these methods by using the mean absolute deviation and mean absolute percent error performance criteria. Does your analysis suggest that sales are trending and if so, by how much?
|
Period |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
|
Sales |
578 |
624 |
638 |
738 |
647 |
605 |
760 |
716 |
690 |
714 |
650 |
745 |
(i) Obtain the trend projection with regression forecast.
The forecast for week 13 is?
In: Operations Management
1. Are companies trying too hard to be empathetic with consumers
during the pandemic?
Is the right message exposed to the consumer at the right time?
2.Are these advertisements a good method of motivating a
consumer to buy their
product? Is it feasible for companies like Hyundai to suggest for
consumers to buy a car
online during a massive period of unemployment?
3.Is donating money towards social cause and reduce advertising
airtime, a good
business strategy?
4.What are the avenues for advertising if people are following
ad less channels like
Netflix or Spotify?
5.What is the purpose of including current pandemic situation in advertisements?
6.How current pandemic situation could possibly change consumer behavior?
7.Are companies’ current donations during covid-19 can be
referred to as a good
marketing strategy?
8.Are many companies expect to change their branding strategies after covid-19?
In: Operations Management
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One management problem Ryanair is facing is overloading on the
staff and low salaries. (staffing)
You need to investigate the problem using relevant management
theory and need to offer recommendations by way of solving the
problem,
Thanks
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Effective communication between applicants and institutions can be a determining factor in successfully enrolling students. Explain what this means for enrollment today. In addition, technology can plan an important role in the enrollment process. Refer to the artificially intelligent virtual assistant article found in the week four overview tab and predict the evolution of communication strategies over the next 10 years.
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In 2/3 paragraph explain what are some risks associated with a newly developed mobile application and what should we do about it?
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How might Range’s leadership, communication, and values affect employees’ organizational commitment? Explain.
In: Operations Management