Key Supply Chain Management Trends In Tesco

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Recommended: Sustainable supply chain management

Key supply chain management trends that we identified are:
• Just in time
• Responsibility and traceability
• Sustainability
• Internet of Things
Just in time
Just in time is a key strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process thereby reducing inventory cost. ‘With the JIT manufacturing system, materials are purchased in small quantities delivered frequently just before they are needed for production’. It is a proven system of producing product effiently while keeping cost low and this is seen in two very successful companies such as Dell and Toyota. Toyota follow the ‘Kanban’ system which means they are able to change quickly in relation to demand without …show more content…

Tesco has committed to reduce its impact on the environment and to do this has set out a sustainability strategy that identifies environmental risks. Many of these environmental risks are systemic challenges that the whole industry faces, such as climate change and deforestation. Therefore Tesco knows it must work collaboratively with suppliers, partners, NGOs, industry bodies and stakeholders to address these issues.
Developing a sustainability strategy can often be seen as a complex specialist topic and out of reach for many suppliers. Tesco is passionate about changing this misconception and helping all its suppliers to unlock the potential benefits that a more sustainable business can bring.
Just in time (JIT)
JIT is a very simple idea but one that is essential in modern supply chain management. JIT sets out to cut costs by reducing the amount of goods and materials a firm holds in stock. JIT is about Producing and delivering finished goods “just in time” to be sold. JIT is the key element in what is termed lean production; lean production is a philosophy and a way of eliminating all forms of waste. JIT is a vital element for Tesco’s supply chain, as it results in the company having just the right amount of stock at any given time. Too much stock is a liability to the company as it results in storage space been used up, money is tied up and there’s always the possibility that perisher able products will exceed there sell by

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