Question

In: Operations Management

Discuss the laws and digital forces that relate to how tesco has brought about digitization in...

Discuss the laws and digital forces that relate to how tesco has brought about digitization in its organizations.

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Expert Solution

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.


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