“INDUSTRY ANALYSIS- TESCO”GROUP MEMBERS: NORASIKIN BINTI ABDURRAHMAN CEB110050PARK SE EUN NET120277BYEON SEONG HWA NEX120203RASMUS NORDSTROM NEC120248LECTURER: DR. SUHANA BT MOHEZAR ALISUBMITION DATE: 31/5/2013CONTENTSCONTENTPAGEIntroduction-Description of the industry-Description of the industry player -TESCOCase StudyIssues/ Challenge facing by TESCOHow SCM can help the challenge-Recommendation-Cross docking-RFID-Just in time (JIT)-Vendor Managed Inventory (VMI)-Strategic alliancesConclusionReferences1-234-56- 111213INTRODUCTIONIn this paper, we are going to take an insight into retail industry or more accurately – food retailing industry. The paper will start with a short description of the industry as well as a short description of an industry player which in this case is the multinational grocery store giant TESCO. Later on, we will state some of the major issues or problems faced by Tesco and provide some recommendations to address those issues. We chose this industry as it is rely chain management problems in mid 1997. It started from their supply chain management director, Graham Booth who feels Tesco invested such huge many on their logistics operation where actually they had to pay a different cost for transporting their same material/product to larger stores and small outlets when it is actually can share same costs.Graham Booth think Tesco is actually can reduce time and effort as well as logistic costs, if Tesco can implements a good logistic method such as Toyota supplier logistics methods. And he approached Dan Jones (research person) to discuss about his thought. Then Dan initiated to “taking a walk’ as they can witnessed themselves the processes or cycle of the logistic operations. The logistic operations that they took an action are cola soft drinks products. As they ‘taking a walk’, they also invited the other functional directors at Tesco retail, financing, purchasing, distribution, along with the operations and supply chain directors of Britvic tore employees didn’t manage to replenish the shelves. There is challenge to Tesco how they need to manage their upstream problems and to improve their poor shelf replenishment process.Re-sort products from roll cages that have just come off the truck from the RDC. It’s clearly waste a time when the employees is actually can directly stored the goods or even can ask a favour to the supplier to fully sort the products before the sending to them. Re-sort products that have just come off the truck are actually dealing with re-work and duplicated efforts. This give challenge to Tesco to eliminates the re-work among their employees.Huge warehouses of cans waiting to be filled near the bottling plants. From the case study above, there is two warehouse which is one for the filling lines for cola and warehouse for cans waiting to be filled. It supposedly need only one warehouses, where cans are in the same room/place with the filling lines for cola, as they can save workforce, costs and time fy maintain their inventory levels at minimum and this may bring to cut down their inventory costs. RFID technology at the pallet level or state has the potential to automate the distribution of products between manufacturing warehouses and retailerss of different organizations. So, retail companies might be able to reduce their costs also down from lost and misplaced inventory.JIT (Just In Time) Inventory systemTesco and Britivic’s have bullwhip effect, which refers the products were missing at the shelves, whereas the leftover stocks exist in RDC. This problem can be solved by JIT system.By introducing JIT system, stocks can be used all due to its characteristic. It is about bringing in and sending out by the demand. JIT system puts its goal on providing enough amounts that buyers want and no more stocks, which will lead to the full usage of stocks, zero inventory. Therefore, Tesco should adjust consumers’ needs by using employees on the right place, and by operating this system the ginto the foreign markets by hiring stores from Safeway in primary locations. If Tesco purchased the buildings and the project was far from satisfactory, the losses would be much higher than if they rented them. Therefore, a strategic alliance admits companies to burden together the fixed costs and reduces the risks when it comes to entering new foreign markets.Furthermore, since each country has different laws regarding properties, business (all the fields) from other countries, so it can make confused situation between stakeholders how to follow the law-with one side’s company in alliance their knowledge can be transferred to Tesco and vice-versa. Likewise, strategic alliances sometimes could be risky too. For example, if Safeway go bankrupt and have to disposal its stores, finishing off the contract, it definitely puts Tesco in a vulnerable situation of either purchasing the stores it rents located in prime areas or resites different places. Both ways bring about expenses of the comp