Value Chain Analysis of TESCO

TESCO is a grocery retail chain British multinational company. The retail chain brand started its business in 1919, and it has established a network of approximately 4673 chain stores in various countries worldwide. Today, we’ll discuss the value chain analysis of TESCO supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and vendors of TESCO

• Allied Bakeries
• Avara Foods
• Cargill Meats Europe
• Yeo Valley Farms
• Muller Milk & Ingredients
• Kerry Foods
• Premier Foods
• Booker

The Value chain analysis of TESCO supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of TESCO value chain analysis company example as follows;

Value Chain Analysis of TESCO

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of TESCO supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of TESCO

The primary activities are directly involved in the production of products and goods and adding value to the retail chain supermarket company. Some of the five main primary activities in the value chain analysis of TESCO supply chain analysis are as follows;

Inbound Logistics of TESCO

I-Large Suppliers Network

TESCO has established a very large suppliers network comprising thousands of suppliers in various countries worldwide. The worldwide network of suppliers helps the company to ensure the smooth availability of raw supplies and materials for production and retail sales. However, the company deals with product suppliers in the following categories;

• Health, wellness, and beauty
• Petcare
• Household
• Confectionary
• Coffee and tea
• Dairy products
• Fruits and vegetables
• Meat and poultry

II-Suppliers Relationship

A study was conducted by interviewing approximately 500 TESCO’s suppliers, out of which 65% of them said that they had seen improvement in their relationship with the suppliers. In order to improve the skill and expertise of its suppliers, the retail chain brand launches various types of training programs to achieve efficiency in its processes.

Outbound Logistics of TESCO

I-Transportation & Distribution

TESCO employs multiple transportation and distribution channels for the delivery of products and goods. They move products and goods from suppliers to the manufacturing factories; distribution centers and warehouses, and then to the retail store and the end consumers. However, the company offers various types of delivery saver options to customers ranging from next-day delivery to month-long delivery.

Operations of TESCO

I-Production & Manufacturing

TESCO has approximately 11 production and manufacturing factories in 7 countries across the world; along with many outsourcing factories. The worldwide network of production and manufacturing factories would help the company to produce various products under multiple brand names. As a result, it helps the company to keep up with the growing demand of the customer market.

II-Distribution Centers & Warehouses

TESCO has approximately 20 warehouses and distribution centers across the UK and dozens of others worldwide. They receive finished goods from the manufacturers and producers; temporary store, label, and package the products before shipping them to the retail chain stores and the end consumers based on their order requirements.

Marketing & Sales of TESCO

I-Marketing & Advertisement

TESCO is highly proactive in running various types of marketing and advertisement campaigns for the promotion of its products services and brand. The retail chain brand employs various media channels and platforms to approach the targeted customers like TV series, magazines, retail stores, and others.

II-Retail Chain Stores

TESCO has approximately 4673 retail chain stores and supermarkets in various countries across the world. The worldwide network of chain stores would help the company to directly sell its products to the end consumers; they could check the product before buying it.

Services of TESCO

TESCO offers a wide range of products and services to the end consumers. The additional service portfolio helps the company to improve the customer satisfaction level and promote brand loyalty; some of the main services are as follows;

• Internet
• Telecommunication services
• Financial services
• Software
• Online shopping
• Home delivery service
• TESCO Bank

Supporting Activities of TESCO

Supporting activities are indirectly involved in the production of products and goods and adding value to the retail chain supermarket company. Some of the main supporting activities in the value chain analysis of TESCO supply chain analysis are as follows;

Infrastructure of TESCO

TESCO has established a very large infrastructure of production and manufacturing facilities, warehouses and distribution centers, retail chain stores, and supplier networks. The worldwide network and strong infrastructure would help the company to smoothly perform its various retail operations and timely deliver the finished goods to the stores and the end consumers.

HRM of TESCO

TESCO has employed approximately 330000 employees and workers to manage its global operations. The human resource management department of the company plays a key role in building a large database of employees and workers; conducting training programs for suppliers and workers, carefully screening and recruiting the right employees, and allocating of right employees for the job.

Technological Development of TESCO

TESCO invests a significant amount of capital resources in research and technological development. It allows the company to develop efficient methods of production, employing the latest tools and equipment, data analytics, automated processes, and smart processing. However, advanced technological tools and equipment would help the company to achieve operational efficiency and provide a great shopping experience.

Procurement of TESCO

TESCO is highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods. The company has set up a strict code of conduct for suppliers to ensure their compliance with human rights standards and regulatory requirements.

Conclusion: TESCO Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of TESCO; we have realized that TESCO is the world’s leading retail chain supermarket brand. If you are learning about the TESCO value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.