2.4 Overseas Operations
By 2003, Tesco has started functioning successfully in Ireland, Slovakia, Hungary, Poland, Czech Republic, Thailand and South Korea. It is evident from the 2003 annual report of Tesco Plc that overseas operation now accounts for almost half the Tesco retail space and nearly 20% of sales (Tesco Plc Annual report, 2003). Managing international operations has been a challenge for Tesco. With the experience of managing an efficient supply chain in the UK, Tesco has been able to replicate the operation overseas in a similar manner. However there has been change in procurement strategy. Tesco has adapted to local and global sourcing strategy. Tesco has been able to utilize the local talent and resources and also managed to maintain a consistent global brand image. Local Operation and distribution is done through rail and road between a central distribution facility and the stores. It also uses sea transport to source products from global suppliers, thus maintaining a consistency. The primary distribution is kept similar as the UK operations and the use of information technology has enabled Tesco to optimize the supply chain activities and maximize the supply chain value internationally as well.