Food Retail Supply Chain

Topics: Tesco, Inventory, Supply chain management Pages: 11 (3595 words) Published: December 3, 2012
2.Research objectives:2
3.Research Methodology:3
4.Data collection:4
5.Data analysis: to explore shortages in food industry in leading supermarkets5
5.1 Own Brand Commodities:5
5.1.1 Fresh Lamb Half shoulder:6
5.1.2 Tesco Everyday Value Minimum Eggs:6
5.1.3 Tesco Parsnips Pack:7
5.2 Manufacturer Brand Commodities:7
5.2.1 FOX’s Jam Sandwich Creams:7
5.2.2 Kingsmill Tasty Wholemeal Medium:8
6.Benchmarking analysis of Tesco and Asda:9
6.1 Similarities:9
6.2 Difference:9
7.Actions can take to keep shortage in a minimum:10
8.Influence of customer changing preference:11
9.Fundamental challenge in food supply chain:12
10.Validity of results:13
1. Introduction:
The term of supply chain refers to a sequence of events covering a product’s whole life cycle from conception to consumption. (Blanchard, 2010, p.3) Products start from materials travel through the whole supply chain; finally they are available on the shelves and purchased by end users. So the efficiency of the supply chain may have direct influence on final results: gain profits or waste cost. Due to the shortage of food resource and changing eating preference, the food supply chain in UK becomes much more complicated and crucial ever than before. Supermarkets such as Tesco, Sainsbury and Asda/Wal-Mart, held jointly over 50% share of the UK grocery sales (Simms, 2007, p.90), suffer from fierce competition in such supply chain. In order to gain competitive advantages, these retailers expand their supply chain to overseas, launch Global Data Synchronisation (GDS) system to build accurate database and produce value added commodities. However, despite these adjustments, ensuring products available to sell is the most important element in judging its supply chain. Provided a high level of inventory is stocked, the cost will increase with revenue. While if stocking a low level of inventory, profits will be lost because of stock out. Therefore, balancing the level of products availability and cost of inventory can make or even break the supply chain.

2. Research objectives:
The overall aim of this report is to analyse causes and actions towards food shortage in retail supply chain of leading supermarkets. The output from the report will help these main retailers keep shortage to a minimum. In the context, analysis is presented with following three specific aims: · to explore problems in leading food retailers.

· to find solutions so as to prevent shortage.
· to identify challenges towards food supply chain.

3. Research Methodology:
With regards to the objectives, the researcher chooses Tesco and one of its main competitors (Asda) which are both leading supermarkets in the UK retail market. At first, the researcher visited a large Tesco superstore in Liverpool one (L1 4AF) between 15:30 and 16:00 on 10th November, 2012 and collected data of five out of stock (OOS) commodities concerning each price, layout, special offer and other information which might explain the stockout. Subsequently, the researcher arrived at a similar sized superstore of Asda (L15 2LF) to check the stock statistics of similar products in order to have a comparison with Tesco at 16:20 right after the first visit. The key methods used in the report are mainly based on data comparison and benchmarking analysis of these two supermarkets, combining literature and internet review.

4. Data collection:
Commodity| Out of Stock?| Perishable?| Special Offer?| Price| Layout| Other| Tesco Fresh Lamb Half shoulder| Sold out| Yes| Price Drop| £5.00/KG| Bottom| | Tesco Everyday Value Minimum Eggs| Sold out| Yes| None| £1.69| Bottem| 15 in box| Tesco Parsnips Pack| Sold out| Yes| New| £1.00| Top-Left| 500G| FOX’s Jam Sandwich Creams| Out of Stock| No| Half Price| 54P| Middle-Left| 150G| Kingsmill Tasty Wholemeal...
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