The grocery retailer tesco and its operation processes

Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.

The aims at Tesco PLC is to be a leading retail supermarket and that excellent quality services are provided whilst products such as food and clothes are of a low cost. By also having cheaper prices than competitors such as ASDA. The objectives in doing this is to increase profits by increasing sales to the maximum. This is done by providing a better service of care so that the current customers stay and attracting more customers from the competitors such as ASDA. Therefore, profit will increase due to the cause of an increase in sales. This objective is measurable due to being Tesco PLC can keep track of the volume of sales. Another objective is to minimise the prices of products of food and clothes. Tesco PLC aim for householders to have a cheaper trip by Tesco PLC offering more deals so then customers can take advantage of, so their shopping will be cheaper. Furthermore, this aim can be achieved. An extra objective is to sell more healthier food related products so that more customers will be attracted of whom are interested in a healthier lifestyle. Also, the objective of developing an online site so this will attract more customers and increase in profit due to people who may not have the time to physically go to Tesco PLC will be to shop some way. As online shopping is more convenient for some customers. Final objective for this

For example, for Tesco the key performance objectives can also be laid out in a similar way. In terms of Tesco cost they use a standard supermarket operating model which focuses on the product being ordered and then taken from the centres to either stores or delivered to people’s homes. In terms of Tesco’s speed, they offer a quick online delivery or even in store when consumers are able to service themselves or go around the store with a hand held scanner which adds the amount of gods they have and create an order for the customers before they arrive at the tills, after all they would need to do is make a payment for their shopping and their experience is a quick as that. In terms of their flexibility component, consumers have the option of coming into the store to purchase their goods or they can order online which they can then select a timeslot which would best suit their times of delivery. In terms of dependability the timeslots that consumers chose alongside the option of consumers coming into store to look at products before purchasing is one of many areas of how dependable they can be for its consumers. Finally in terms of the quality component, they have to ensure that their goods and services they provide is of a good quality which is going to determine how many percentage of their consumers they can

Tesco has different aims and objectives that they wish to achieve every day. Some of these include: ‘Cutting prices and offering more in store deals’, ‘To reduce unemployment in local areas where Tesco shops are built’. However, the two main aims for Tesco is to ‘maximise profits’ and ‘Grow and maintain the number on retail in the UK’.

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Tesco is one of the most famous stores in the UK with it being our biggest sales retailer earning billions in profits. The statistics of the supermarket are extremely impressive with over 330,000 staff employed, being the third largest supermarket, over 16 million Clubcard users in the UK and it being said that one pound in every seven has been spent at Tesco. All of this used to just be a small stall in East London when it was created by Jack Cohen in 1919 simply selling groceries making a profit of just £1 on the first day. Five years later, Cohen purchased a shipment of tea and Tesco became a brand with its first store opening another five years later, in 1929, in North London. Tesco is now not only just a grocery store, it also sells petrol (becoming the largest independent petrol retailer in the UK), insurance, has its own bank, credit cards, loans along with products such as its own clothing line F&F, games consoles, televisions and sports equipment. However, in 2014 Tesco had a shocking downfall when it had been revealed that they had exaggerated their half-year profit forecast by a massive £250 million.

to financial issues or threats of losing future contracts. Quality control has been an essential

The problem is occurring because customers end up not needing the parts that they ordered. Another reason the problem may be occurring is because the customers simply forget that they ordered a part. The abandonment of special orders have two main effects on the store, including: unhappy employees and profit loss. When special orders are abandoned, the countermen get lectured about how they need to pay better attention to what the customer wants. When the countermen get lectured, they feel like they aren’t doing their job correctly; however, they are just obeying the customers’ wishes. Profit loss is perhaps one of the biggest detrimental effects that the issue causes. When a customer neglects to pick up the part they order, it sits on the return shelf until the classification return is process. The store must pay a 15% restocking fee when the parts are sent back to the distribution center which results in a massive loss of profit over

The real life example of a transformation process in America is T-Mobile which is one the well- known company. T-Mobile has 2000 company run stores and 1100 branded stores. The company’s store provides new and old version of cell-phones as product and provide connections for phones as service. T-Mobile has approximately 50,000 employees all over in America which is their human resources. Employees handle purchase and sales in store and interact with customer to present new deals, company have. In this company, capital is phones and related things (product) which are different brands. Moreover, there capital is sim cards as well. T-Mobile use natural resource which is land.

Quality performance objective- this is basically what the title reverse it to, Tesco will need to successfully buy goods which consist to have great qualities, if they proceed to purchase bad qualitied items from suppliers it would only lead to unsatisfied customers which is not a goal that the business would be aiming for.

Speed: The ability to do things quickly in response to customer demands and thereby offer short lead times between when a customer orders a product or service and when it is received

The first objective, effectiveness and efficiency of operations, deals with the overall business objective. The covers everything from personnel and hiring practices to safeguarding

The quality is doing the product right in order to reach the expectations of the customer.The main aspect of the operations management is trying to reach the customer expectation on their point of view of the relation between the quality of the product they receive and their expectation about it.

2. Flexibility increase speed of response - being able to give fast service for customers depends on the operation being flexible. Flexible operations speedily transfer extra skilled staff and equipment to the urgent conditions and emergencies will provide the service

The major differences between goods and services in operations management are their goods, inventory, customers, labor and location. One major difference in the tangibility of their output. For example, a service firm would entail consultancy, training or maintenance, this is an intangible product. These services are not tangible object, but still provide a “product” for the customer. A good would be a tangible for the consumer. A company manufactures a certain product and the consumer is able to physically receive it. For example, A manufacturer such as Coke, Nestle, Honda and BMW. Another difference between a service and goods is their inventory. Service forms do not hold inventory, they provide a service when their customers ' need it. Manufacturers produce goods which creates an inventory. Inventory levels are created through supply and demand. A lot of companies only have a certain level of inventory in order to utilize their “space”. In addition a major difference between goods and services is their customer relationship. There is a high customer contact in the service industry. The service industry caters to their clients; meaning they adjust their service to the needs of the customer. For example, a consulting firm may only need to do four hours of work with a certain customer and twelve hours with another. In manufacturing goods there is low customer contact. Manufactures can produce their customers goods without having them submit an order, because they can