Importance Of Logistics Management In Tesco

Logistics management plays a major role in the success of any company’s operations and incorporates a direct impact on its bottom line. more significantly, logistics processes play an enormous role in client satisfaction, that is very vital than low product costs. logistics professionals ought to consider themselves as a customer-facing portion of the corporate and attempt daily to add value for their customers.
The current retail position of Tesco is way faraway from the origins of the firm. Tesco created its name by the operation of a ‘pile it high, sell it cheap’ approach to food merchandising. price competitiveness was crucial to the current and fitted well with the buyer necessities of the time. The firm and its store managers were basically individual entrepreneurs. The expansion} of this firm saw significant expansion until by the mid-1970s Tesco had 800 stores across European countries and Wales. Tesco itself had thus to change. This answer is therefore going to dwell much on Tesco’s logistics challenges in the early days of high demand and supply
Poor methods of inventory control
In the mid-1970s Tesco operated a direct to store delivery (DSD)process where suppliers and manufacturers delivered straight away to stores, almost as and once they had chosen. Store managers usually

For instance, it was discovered that perishable products rarely reached their destination in the same fresh condition and this reduced the period of time of those products to a number of days. This posed a great risk to Tesco since goods in such a condition failed to sell at economic prices. Other effects might have been additionally subtle however more lasting and of dire consequences. This enclosed an erosion of a nation’s longterm competitiveness through higher costs of merchandise, augmented balance of payments deficit by creating merchandise less