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OPERATIONS AND LOGISTICS MANAGEMENT - Assignment Example

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In the increasingly competitive twenty-first century world of integrated business procedures, linkages and expansion, application of logistics and operations is vital to the prospects of modern businesses. Using the global retail giant TESCO as a model, this essay discusses the…
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OPERATIONS AND LOGISTICS MANAGEMENT

The various elements of its (Tesco’s) corporate strategy, and their bearing on the numerous aspects of the organisation’s vast enterprise, will be analysed, with a view to determining the nature of the relationship.
An attempt will also be made to identify/evaluate possible areas of improvement in the organisation’s operations management; in addition, the ways in which Tesco’s operations add value to the delivery of its products/services will be explained.
Corporate Strategy is essentially the long-term direction of an organisation. As a global mogul in the retail business, Tesco has a long-term business strategy of: (a) succeeding as an international retailer, (b) being as strong in food as in no-food business, (c) development of its retail services, (d) growth of its core UK business, (e) putting the community at the heart of its activities.
In line with its organisational strategy of success as an international retailer, Tesco has imbibed a Facilities culture that reflects this aspiration. Ideally, organisational business activities should integrate the needs of people (customers and staff), machinery and material to provide a smoothly-functioning system. Tesco’s introduction of Tesco Link, giving its suppliers access to in-store sales and stock availability data, exemplifies this concept (the logistical underpinnings of a smooth flow of materials/goods from the suppliers through Tesco to the consumers, are obvious). This is further enhanced by the Capacity management efforts of Tesco, whereby it utilises an online delivery system to replenish its stores thrice daily, to achieve (in addition to meeting customer needs and the activity-level needs of staff) shorter lead-time in the supply chain and lower inventories (Case Studies From Tesco HSC, 2010). This, the source further notes, has helped the organisation achieve improved product availability and a boost in its labour productivity. There is a connection in the context of obvious benefits to ... Read More
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