Tesco Distribution Network Swot Analyses
tesco distribution network swot analyses
strengths
apart from entire tesco plc, tesco's distribution network was an integral part of its success story. tesco successfully apply lean distribution, just in time strategy on its distribution network.
1) data exchange programme ( tesco information exchange)
the deliveries occurred in waves depending on the nature of goods delivered. for example, fresh produce was delivered right before the stores opened while dry goods were delivered at less busy times during the course of the day. the distribution system was integrated with a supplier extranet that tesco had built in partnership with ge information services. called the tesco information exchange (tie). intended as a complement to the edi (electronic data interchange) system already in use, tie was linked to a number of tesco's key systems to give suppliers access to relevant and up-to-date information such as electronic point of sale (epos) data to track sales and inventory. tie promised numerous benefits for participating suppliers as well. it had the potential to generate significant savings in planning joint promotions, more efficient inventory planning, and more sophisticated analysis of inventory flow data. result greatly increased the number of deliveries: after a few years of experimentation, tesco trucks now leave regional dcs multiple times per day to replenish what was sold in the past few hours.
2) rfid (radio frequency identification):
tesco is one of the leading companies to use rfid.
- rfid help to achieve easier, faster and paperless picking process.
- key performance indicators can automatically be measured by rfid
- rfid allowed labour cost to be reduced by this technology, tesco distribution network has got achievement in following areas:
a-delivered quantities versus what was ordered (availability or service) b-delivery timeliness (measured against the booking-in time) c-rejection of products (triggered by
strengths
apart from entire tesco plc, tesco's distribution network was an integral part of its success story. tesco successfully apply lean distribution, just in time strategy on its distribution network.
1) data exchange programme ( tesco information exchange)
the deliveries occurred in waves depending on the nature of goods delivered. for example, fresh produce was delivered right before the stores opened while dry goods were delivered at less busy times during the course of the day. the distribution system was integrated with a supplier extranet that tesco had built in partnership with ge information services. called the tesco information exchange (tie). intended as a complement to the edi (electronic data interchange) system already in use, tie was linked to a number of tesco's key systems to give suppliers access to relevant and up-to-date information such as electronic point of sale (epos) data to track sales and inventory. tie promised numerous benefits for participating suppliers as well. it had the potential to generate significant savings in planning joint promotions, more efficient inventory planning, and more sophisticated analysis of inventory flow data. result greatly increased the number of deliveries: after a few years of experimentation, tesco trucks now leave regional dcs multiple times per day to replenish what was sold in the past few hours.
2) rfid (radio frequency identification):
tesco is one of the leading companies to use rfid.
- rfid help to achieve easier, faster and paperless picking process.
- key performance indicators can automatically be measured by rfid
- rfid allowed labour cost to be reduced by this technology, tesco distribution network has got achievement in following areas:
a-delivered quantities versus what was ordered (availability or service) b-delivery timeliness (measured against the booking-in time) c-rejection of products (triggered by