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Tesco Supply Chain Case Study

Paper Type: Free Essay Subject: Business
Wordcount: 2043 words Published: 8th Jun 2017

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Analyzing the case study of Tesco Supply chain logistics its aim to explain about the area of the supply chain logistics management and explains it green logistics strategy in the relation Tesco UK . According to AMR Research announced Tesco as a Second Annual Supply Chain TOP 25 in 2005 December. This report tries to study how Tesco relies on best supply chain systems in maintaining high quality, environment friendly and giving customer’s world class service. Through implication of green logistics TESCO maintaining the environment friendly and make goods sustainable which decrease the cost of the several products. Recycling the product to reduce carbon.

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1.Supply Chain Logistics Management

According Mentzer, J.T. et. al. 2001.”Supply chain management is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole”. Supply chain addresses the flowing problem:

  • Distribution Network Configuration: It’s like a cross docks and distribution Centre.
  • Inventory management : It may be raw material and location and quantity of inventory.
  • Information : Process through the supply chain is to share forecasts & inventory.
  • Distribution Strategy : Transportation control and pool point shipping.
  • Cash flow : Methodologies and Payment terms.

2.Green Sustainable Supply Chain Logistics Management

Method via environmentally friendly ideas and renovating these efforts through change mediators who’s by goods can increase or reused with in the present environment. This method improves productions that can be cultivated and reused at the end of their lifecycle therefore forming sustainable supply chain. Sustainability is tremendous weapon for the companies which diminish the cost and make the environment friendly. Green sustainable supply chain working on chart in which Input raw material environmental friendly then it goes to process with environmental friendly then after the production completed in give the environmental friendly output after the disposal of product it come throw end of raw material life then the product goes to improve or reuse through the process after reclaimed product and recycled raw material is ready to use for raw material this raw material using in green logistics it reduce the wastage which polluted the environment which not good for environment friendly. In few years if companies adopt the sustainable supply chain then now worries to put investment on the scrap products it create a new product life and give the benefits which may be used in different way in your production. Green supply chain is help to reduce carbon and make the environment less polluted.

3.Tesco Background

In 1919 Jack Cohen founder of Tesco invested the gratuity of 30 pound in stall. Cohen started to sale a label tea which is introduced as a Tesco Tea. The product name as an initial combination of tea provider TE STOCKWELL and the cohen’s starting two letters name.

In 1929 the first store of Tesco opened. Tesco adopting supermarket culture which is influence by American culture and try to introduce this culture in the industry of United Kingdom. Tesco policy for the product is to sale it as much as cheap after this policy Tesco started self-service policy in 1947. After the progress of Tesco super market was open end. Further Tesco is expanding the business and opening new retail store chain. Now Tesco providing trade stamp on the product when they purchased. In 1967 Tesco superstore is with the area of 90000 sq. As a smaller store make the customer friendly, after serving customer in a retail store company starts operating petrol pumps in 1974 and introduce discounts offer scheme which is name as “checkout at Tesco” and company reached one billion pound turnover in 1979.

4.Tesco Supply Chain Management

Important period Tesco supply chain was between 1983 and 1996. During the period between 1985 to 2002 Garham Booth was director of supply chain.

Company heavily relied on the concept improvement and the core value of customer for the life time loyalty during this period the company introduced several structures with point of sale scanning centralized distribution, centralized ordering ,computerized warehouse control and electronic data interchange and along cross dock distribution center and transport supplying to store with coordination of suppliers. Across the world company operations feast in 12 countries. In 2005 Tesco had 2365 store around the world and in United Kingdom with 1780 store which is operating with the retail area of 24.2 million sq. feet. The company efficiency level was 99.9 percent and company ment six million for failures service.

5.Tesco recycling Centre for carbon foot print

Tesco introducing information about carbon footprint which is seems in their recycling center by means how carbon saving after recycling the waste company introducing machine in their recycling center. Company is looking to avoid waste of carbon and make new atmosphere environment friendly. By making product packaging with the recycled material is like unworkable fossil due to produce less carbon. This recycled Centre help to recycled product and create lower footprint carbon. This technology tells us about how much carbon saving by each time after recycle the product. As a company Tesco committed by 2050 to produce zero carbon business. In carbon foot Tesco is labeling a new label on the product on which is clearly show how much in it and carbon usually measure in tone in a British human being has ten tones in a year it will be divided in different form where we get from our home and product and from transport.

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Tesco has opened store in Manchester with the opportunity of 230 jobs in a store. The area of the supermarket is 52000 sq. ft. with footprint of 70% carbon. As a low carbon store lighting system of the store is maintained by dimming bulbs when outside is brighter it has packing zone checkout from recycled plastic. In this store cool fridges are used rather than old fridges gases these new fridges are run by natural gas or natural carbon dioxide. Company aim to decrease carbon in its operations and after wastage removal by the worker of the company and Tesco decrease the amount of packaging with coordination of suppliers, company using recycled trays for the movement of product and stock which a replacement of cardboard which is 130000 tones. In Tesco Irish aim to reduce 100% waste of its store and in 70 percent of waste in UK. As a implementation to environmental friendly Tesco install recycling machine at their many store its approx. 200000 tone which customer recycle by them self. Tesco also engendered electricity and heat from their waste meat which 5000 tons of expire dated meat it’s a more than sufficient power of energy for home to control 600 for year and build the roof and designed to entre natural light all the natural light and for the production of bake break is done by recovered vegetable oil which cut the cost of product and rain drain water is used for toilets and these implementation are used cut of or the half of energy which is used to run a store properly manner. Towards maintaining a better network of distribution company is also looking to make eco-friendly store in which company made remarkable progress like RAMSEY CAMBRIGESHIRE store in which TESCO says that zero carbon and it is the first which have this kind of quality because this store is made by wood which is called timber and using rainwater collector for the toilets and for further business cleaning service like car washing and help to clean all the store which save the water expense so its directly approach to profit if the expense are low so that the profit are high but it’s not about the profit its about how company moving toward the environment friendly which necessary for our customer make them healthy. As company moving to ecofriendly so this store part of the project to maintained zero percent carbon organization before 2050.

Tesco is always looking for the given the advantages to their customer like by the given them a rewards point or gift voucher but for the environmental friend company given more attention in change instead of a gift voucher something else when you shop on Tesco bring used bags to save the carbon and production of new shopper will cost and make environment polluted so as reward company is give the customer loyalty point instead of not using new begs. It’s like Tesco ‘Every little helps’. After refusing carry bags as an average 2.1 million begs a year. Tesco use to make carry bags from different plastic which know as degradable plastic, bags will broke in few month and its harm to environment

6.1.Sustainable product

Tesco is committed with the fish farming nearly 2500 staffing and the Britain’s with four hundred and eighty fish counters and taking fish committed only. Tesco is always committed to tell u about decision before buy a fish for your food near about forty different kind and with continuous advertisement to buy a new one like sea bass, sea bream are now popular. As the agriculture is most important topic for the production so like milk production and water and chemail usage is more important for green house due to pollutant products. So Tesco is looking forward for the farming positive impact on the atmosphere and countryside. As customer human being taking in it by means or payment support so the product will be not harm for the human being. Now Tesco help to reached environmental friendly practice to the dairy farming. Farmers are taking initiative by the help of TSDG program which is the best practice. Health planning process to take good care of dairy product by milk recording and have consultant about the cow and investigate about diseases and check the efficiencies. Milk recording help to improve sustainable dairy farming. Individual cow management, reviewing the bench mark performance and sharing data. And qualified animal health care management or welfare adds the value or end product in supply chain.

6.2.Sustainable product Benefit

  • Tesco mature appraising system fisheries robust and sustainable principles of the Marine conservation society scores.
  • Budgets of realizing environmentally friendly farming rehearsal will be imitated in the total chaser element of the milk value.
  • A cow with a lockup calculation average of 200000 per ml will be estimating £100 through vanished production.


Transportation is very important elememt in supply chain logistics it will via sea or by air or by road and consumption is also important because it added to cost of the good. Tesco analaysis the transport to reduce the carbon emission with the joint strategy with Paragon to support the sustainable distribution network . Tesco is leading retailer company in UK and Paragon is leading benefactor of the rout and transport optimization solution are working together for the efficiency of tesco fleet. Paragon helping tesco to reduce the saving in both terms of mileage and carbon emissions for sustainable Tesco distribution strategy. Tesco is looking forward to cut the carbon emissions for single goods by 2012 delivered by fifty percent. As a research tesco online store delivery will be delivered by battery powered vans which is saving near about 180 tones of carbon for the year

Battery-powered vans are making deliveries for our online store, Tesco.com – saving around 180 tonnes of CO2 each year! We also have seven hybrid vans in operation, which should save around 10-15 per cent in fuel.


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