Case Study: Tesco
Tesco is the UK’s largest food retailer, with a sal
es turnover of more than 67.5 billion. While
it has some 638 stores in central Europe, and some 636 in the Far East, most are in the
United Kingdom and Northern Ireland, where it has nearly 1,800. This number has increased
rapidly as Tesco entered the conv
enience store market with deals such as the Tesco Express
alliance with Esso to run grocery shops at petrol stations. The product range held by the
stores has grown rapidly in recent years, and currently stands at 65,000 stock
-
keeping units
(skus) dependin
g on the size of the store as Tesco broadens its presence in the ‘non
-
food’
market for electrical goods, stationery, clothing and the like. This massive range is
supported by 3,000 suppliers, who are expected to provide service levels (correct time and
qua
ntities) of at least 98.5 per cent by delivering to Tesco within half
-
hour time ‘windows’.
Volumes are equally impressive. In a year, some 2.5 billion cases of product are shipped
from suppliers to the stores
Case Study: TescoTesco is the UK’s largest food retailer, with a sales turnover of more than 67.5 billion. While it has some 638 stores in central Europe, and some 636 in the Far East, most are in the United Kingdom and Northern Ireland, where it has nearly 1,800. This number has increased rapidly as Tesco entered the convenience store market with deals such as the Tesco Express alliance with Esso to run grocery shops at petrol stations. The product range held by the stores has grown rapidly in recent years, and currently stands at 65,000 stock-keeping units (skus) depending on the size of the store as Tesco broadens its presence in the ‘non-food’ market for electrical goods, stationery, clothing and the like. This massive range is supported by 3,000 suppliers, who are expected to provide service levels (correct time and quantities) of at least 98.5 per cent by delivering to Tesco within half-hour time ‘windows’. Volumes are equally impressive. In a year, some 2.5 billion cases of product are shipped from suppliers to the stores
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