In: Operations Management
Discuss the laws and digital forces that relate to how tesco has brought about digitization in its organizations.
Tesco has continually been investing in technology to develop an
omnichannel customer experience and to maintain a competitive edge
in an increasingly digitized UK grocery landscape.The digitization
begun in the organization through the emergence of Tesco Direct, an
online grocery platform with ‘click-and-collect’
functionality.
Tesco was quick to respond to opportunity, adapting their business
model by establishing an online grocery channel, ‘Tesco Direct’. By
2006, online sales were rapidly growing and in order to meet
fulfilment demands, Tesco augmented their operating model by
investing in ‘grocery dotcom centres’., warehouses solely for
online order fulfilment purposes equipped with innovative goods
delivered directly to person picking technology. customers placed
orders online and collected bagged groceries at a collection point
of their choice.Investment in a home delivery labour force and
supply chain ordering difficulties due to inaccurate forecasting of
online grocery orders given a lack of historical data.
These were the laws and digital forces that brought about digitization in Tesco.