Lean Management in Tesco

Within a report format answer the following questions:

  1. Describe the organisation in the following format:-
  2. The main products and services they provide.  
  3. Who are their main customers? 
  4. What are the order qualifiers for the company?
  5. What are the order winners for the company?

(10% of word count)

From the organisation chosen, identify and describe a problem that currently exists.

  1. Describe the evidence that supports your claim that the problem exists.

(10% of word count)

  1. Explain how it is potentially harming the company

(10% of word count)

  1. Prepare a review of the literature in Lean management.  Describe the concepts, applications and frameworks available in general business, and appropriate for an organisation similar to the type you have chosen.

Discuss the authors, their views on the subject and their frameworks. 

Describe the operational benefits would you expect to see from introducing the concepts within Lean Management into your chosen organisation.

Describe the ways you feel the Topic might develop during the coming 5 years. 

 (50% word count)

  1. From the conclusions drawn from your literature review, and your knowledge of the organisation, create a Project Plan for the changes you would like to see introduced to solve the selected problem.

(20% of word count)

Description of the Organization

Tesco is a British-based multinational organization that was founded by John Cohen in London in 1919. The company has achieved significant growth over the years, making it the biggest retailer in the UK. The company has branches in over fourteen countries across the world. It serves thousands of customers daily, who purchases different retail products. Tesco’s stores can be categorized into four groups that include Express, Metro, Superstore, and Extra (Boyle 2007, p. 46). The four store formats have in the recent past been supplemented with the introduction of Tesco online grocery shopping platform (Simpson 2012, p. 1). The company operations are based on the core value of creating value for the consumers to gain their long-term loyalty. The company’s vision is to be a growth organization. The expansion of the company and its efficiency in online marketing are evidence of its plan of continuous growth. Reviews show that Tesco is among the best retailers, and has developed a brand name that can be effective in gaining competitive advantage (Keller and Lehman 2006, p. 741). Despite the long history of the company and its large-scale operations, the success of the company is highly dependent on its innovativeness in operation strategies, distinctive operation designs, and efficiency in operational management (Swabey 2013). Despite this, there are various challenges that the company faces, that if overlooked could lead to a lack of competitive advantage and compromised the sustainability of the company. The intent of this paper is to address how lean management, including operations management and supply chain management can be used to improve the situation at Tesco.

Identification of the Operations Problem

There are many potential and exciting challenges for Tesco. One of the key issues lies in the prime distribution, which is affected by many drawbacks. For instance, the supplier can be well prepared with the products, but the company lacks the trucks to load the goods to their destination. Such operational strategies in the supply decrease the delivery efficiency compared to when the delivery of goods is done by the supplier (Boyle 2007, p. 46). The use of new technological solutions has also presented some challenges. Tesco was one of the companies to use the Radio Frequency Identification (RFID) technology that utilizes radio bar codes to offer information when products are scanned (Bhatt and Glover 2006, p. 1). Subsequently, the technology can be used to scan products throughout the supply chain. Despite the efficiency brought about by the RFID technology, sometimes it might show errors when the data being scanned is close to liquids or metals, making it inefficient and affecting the supply chain and operational processes (Holt et al. 2015, p. 383). Also, as the company ventures into new international markets, the operational strategies may not be effective in some markets. Additionally, the company has not developed its supply chain to cover some overseas markets. Most of the company’s strategies were formulated based on the UK context. The company can control the stock capacity with a small inventory and meet the market demands, but being in the retail industry involves a large inventory that is a key operational challenge (Keller and Lehman 2006, p. 742).

Evidence Supporting the Claim

Tesco is a key player in the retail industry and this involves intensive inventory management operations.  Subsequently, this raises numerous challenges due to the high number of suppliers and consumers as well as financial transactions. Too much stock leads to a high inventory cost that generates waste. Reducing the inventory might affect the availability of the products offered by the company, leading to loss of consumers. The comp…

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