What is operations management? “Operations management is key to achieving competitive advantage for organizations, whether they are in manufacturing industry or service industry. Operations management addresses the questions an organization faces in its choice of products and manufacturing technology, utilization of capacity, maintenance of quality, costing and sourcing of materials, and customer handling policies.”
What is logistics? “Logistics is the art of managing the supply chain and science of managing and controlling the flow of goods, and controlling the flow of goods, information and other resources like energy and people between the point of origin and the point of consumption in order to meet customers' requirements. It involves the integration of information, It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging.”
Tesco PLC founded in 1919 is a multinational merchandiser. Their head office is in Cheshunt, England, United Kingdom. They operate within 12 countries with 530,000 staff.
From a “down market retailer” Tesco has transformed in the last “25 years or so” in to one of the Europe’s leading retailer. The “visible components” of their success are “Location”, “format of retail outlet” and the “range of products and services” offered both “online and in store” their “constant reinforcement of the corporate brand” played an important part however it was their ”Logistics transformation” “less visible” but “underpinned” the success of Tesco.
The turning point in Tesco’s brand image and operations management were after the “Operation Checkout.” “prices were cut nationally” The stores were re-merchandised” the “trading stamps were removed from the business” Tesco received a “considerable boost to volume” and moved away from its “down-market image.” This resulted in “sharp focus” on “quality and capability” of Tesco, “supply” chain and “relationships” with “suppliers”.
Tesco has gone through “four main phase” in configuration of “distribution strategy and operations.” The first was “direct to store delivery” from “supplier.” after there was the “centralization” then there was “composite distribution strategy” and finally the “vertical collaboration” was introduced to supply chain for better efficiency.
As we can see from this Tesco has been able to change,...