RETAIL


GROCERY


€ 64 BILLION

multi-storey shopping centre with escalators and silver spheres

Tesco

Improved warehouse performance and on-shelf availability at Central Europe distribution centres

Customer

Tesco PLC (stylised as TESCO) is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK (where it has a market share of around 28.4%), Ireland, Hungary, Malaysia, and Thailand.

The existing approach was frustrating for suppliers and their carriers as booking or rearranging a delivery time slot was a time consuming manual process. Our existing system didn’t support our suppliers or make them feel like partners in our operations

Jim Dickson, Supply Chain Development Manager  
TESCO Central Europe

Challenges

  • Goods receiving process at retail warehouses and DC’s in Central Europe were managed by basic spreadsheet-based tools
  • No central system, several country specific solutions with a complicated approach for suppliers and their carriers:
  • Poor visibility for carriers on the length of time trucks would need to wait for unloading at the DC
    • Hard for carriers to plan additional deliveries or optimise truck utilisation
  • Difficult to manage capacity plan due to the existing  approach
  • Movement of operations from a country specific to a central  management structure
  • Due to fixed delivery slots, it was hard for TESCO to allocate warehouse personnel efficiently:
    • Suppliers/Carriers could not always meet the fixed delivery slots they were given.
    • Around 40 percent of trucks arrived on site before the scheduled time in the hope of catching an earlier slot.
  • Existing approach was not able to support promotion-driven, sudden peaks in demand:
    • Suppliers often found it hard to get the slots they needed to deliver extra goods at short notice.

Solution

Since 2014 TESCO has been managing the inbound goods processes at its distribution centres using the slot management of MERCAREON. This allows clear, accurate and trustworthy information. Carriers are much more likely to comply with the scheduled time-slot. The improved internal operations’ planning makes it easier for the retailer to ensure that warehouse personnel are available to unload trucks as they arrive.

Results

simplifying processes

User-friendly for suppliers and their carriers: log onto the system (24/7), enter relevant PO number and book preferred delivery slot from those available

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simplification of relations

Simplified relationships: one point of contact between supply chain teams and bigger suppliers for the whole region. Help for suppliers to improve their day-to-day delivery performance

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integration

Simple, straightforward integration with existing systems

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carrier satisfaction

Carriers know exactly how long the truck is going to be on site (helps to plan further deliveries) due to dynamical adjustment of delivery slot according to the size of the order