Logistics Management- Tesco's Supply Chain

Résumé du document

Tesco is one of the most important grocery and general merchandising retail chains in the world, and the largest British retailer. It was founded in 1919 by Jack Cohen in East London. The company had a turnover of 59.4 billion for 2009. During the three last decades, the group has increased its influence and improved its services, and the company has overtaken Sainsbury.

In this report we will explain the different changes that have taken place within Tesco's supply chain system. To improve its performance and service level as well as the whole operation system.
In the first pat, we will explain Tesco's stock replenishment policy and see why it has been necessary to correct it and adopt a SRS triggered by customers. We will then introduce the requirements needed to efficiently run store replenishment. In the third part, we will define the lean management and compare the new Tesco principles with the definition given. In the last part, we will discuss the rationale behind the Distribution network that Tesco operates within the U. K.

Extraits

[...] In this report we will explain the different changes that have taken place within Tesco's supply chain system. To improve its performance and service level as well as the whole operation system. In the first pat, we will explain Tesco's stock replenishment policy and see why it has been necessary to correct it and adopt a SRS triggered by customers. We will then introduce the requirements needed to efficiently run store replenishment. In the third part, we will define the lean management and compare the new Tesco principles with the definition given. [...]

[...] How does Tesco implement just-in-time principles within its supply chain? According to the text of the case study, Dan Jones the co-writer of The Machine that changed the world, the expert who was hired by Mr. Booth, analyzed the whole supply chain system for one of the products sold by Tesco. From this survey, we learn that during the whole process there was a lot of unnecessary handling. "The product had 170 touch points" (Transportation). The goods were spending too much time in stock "20-40 days in transit at 7 different stocking points". [...]

[...] (1989). Just -in-Time and Automation. In: Japan Management Association Kanban Just-in-time at Toyota management begins at the workplace. 2nd ed. Portland, Oregon: Productivity press. 65-78. - anon. (1989). Improvement Activities for Man-Hour Reduction. In: Japan Management Association Kanban Just-in-time at Toyota management begins at the workplace. 2nd ed. Portland, Oregon: Productivity press. 125- 139. [...]

[...] 81-97. - J.P. Carillon. (1987). spécificités du pilotage des flux en juste à temps. In: les éditions d'organisation Le juste à temps dans la gestion des flux industriels. Paris: hommes et techniques. 87-97. - D.J. Bowersox, D.J. Closs, M. Bixby Cooper. (2007). [...]

[...] This method consists in reducing to a minimum, the time that goods spend to go through each step of the supply chain, or their manufacturing process from the raw material, to the delivery. This way of thinking about the supply chain, is linked to the Japanese company Toyota, which establishes the rule called "the five zeros" for zero breakdowns, zero lead time, zero documents, zero stock and zero manufacturing faults. According to A. Harrison, Just-in-Time can be defined in three points: - The elimination of waste (or "muda") - A total quality - The people preparation "JIT is about doing the simple things well, and gradually doing them better. [...]