Tesco Distribution Strategy

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Introduction Tesco is one of the world’s largest retailers, the company is doing stores and also online business. The company has a strong distribution network to maintain the position of the company among the world’s largest retailers. Distribution network of Tesco plays the role of make sure the goods are delivered to the global customers in the right time at the right place with the right goods. At the same time, the online home delivery service of distribution network of Tesco is one of the strategy to increase revenue but at the same time it becomes a problem to the company. Besides that, Tesco are having a higher transportation costs in the distribution costs. Suggestion to these problems are utilising distribution centre for online market…show more content…
Tesco endeavours to build a drug-free and professional work environment. All of the drugs are prohibited on any company areas whether the use, possession, sale, purchase, possession, or distribution of illegal drugs. This can make sure that all of the employees not influence the ability to go through the duties of the work by drugs. At the same time also increase the effective and efficiency of employees. Besides that, The UK distribution business of the Tesco is presently getting to be guaranteed against OSHAS 18001 which is the business perceived standard for word related health and safety. Tesco measures execution through a 'balanced scorecard' strategy. This is accounted for inside every quarter and has a portion that measures health and safety models and has an objective for decreasing the rate of injuries and the aftereffects of operational people safety reviews that check safety gauges in the company stores and distribution…show more content…
Tesco have multiple deliveries in one day to give more efficiency. But at the same time, the more times to deliver, the high transportation cost. There are three types of transportation costs which are terminal costs, line haul costs, and capital costs. Terminal costs are incurred at the time of loading and unloading the goods at the origin and destination and also transhipment of the goods. This type of costs are cannot be avoided. Therefore, the more times loading, unloading and transhipment of goods the higher the costs. Besides that, line haul costs are the costs that are a function of the distance over which a unit of freight or passenger is carried. For example, the distance between two cities is a long distance thus there are higher line haul costs incurred. Weight is also a cost function when freight is involved. In additional, capital costs are the costs make use to the physical assets of transportation mostly vehicles, infrastructures and terminals. Tesco have more vehicles for easily multiple deliveries, thus the capital costs is higher. Higher transportation costs will led the company gain less

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