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Tesco's E-Commerce Supply Chain Insights

This case study examines Tesco's development of a buy-side e-commerce system for supply chain management called the Tesco Information Exchange (TIE). TIE offers daily point of sale data and joint planning capabilities with suppliers. While TIE provided benefits like increased efficiency and collaboration, only two suppliers fundamentally changed how they worked using TIE. Reasons for this include suppliers needing to maintain traditional operations with other retailers and not recognizing or feeling the benefits outweigh the costs of changing processes for one partner.

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Danna Gómez
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112 views3 pages

Tesco's E-Commerce Supply Chain Insights

This case study examines Tesco's development of a buy-side e-commerce system for supply chain management called the Tesco Information Exchange (TIE). TIE offers daily point of sale data and joint planning capabilities with suppliers. While TIE provided benefits like increased efficiency and collaboration, only two suppliers fundamentally changed how they worked using TIE. Reasons for this include suppliers needing to maintain traditional operations with other retailers and not recognizing or feeling the benefits outweigh the costs of changing processes for one partner.

Uploaded by

Danna Gómez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CASE STUDY 6.

SEBASTIÁN GÓMEZ RUIZ

ALEJANDRO ROMERO RODRÍGUEZ

E-BUSINESS E-COMMERCE & E-LOGIS

FUNDACIÓN UNIVERSITARIA DEL AREANDINA

BOGOTÁ

2021
CASE STUDY 6,2

(TESCO DEVELOPS A BUY-SIDE-ECOMMERCE SYSTEMFOR SUPPLY CHAIN


MANAGEMENT)

1. What benefits does Tesco’s information exchange offer to the retailer and its
suppliers?

 There are several benefits that Tesco provides in terms of the information it
provides for its suppliers and retailers, this company has stood out as one of
the best in the retail trade thanks to the constant use of data interchange
(EDI), this has allowed it to connect. With more than 5000 providers, thanks
to this information all these providers have access to all companies from the
smallest to the largest, as time went by the information that Tesco provided
was of great help to the providers since it allowed them to access data and
thus be more efficient.

2. What differences have the use of TIE added over the original EDI system?

 Is necessary to say that the original EDI system was responsible for
generating the actual store demand, warehouse inventory, and weekly sales
forecasts. In addition to that, the new TIE system can be added that
generates daily point of sale information for each store. Such information
can be displayed by store, distribution center, or even TV region. This
allows providers more time to react to different forecast changes and provide
a higher level of service. This new module also enables collaboration in the
planning process whereby Tesco and the supplier jointly gather planning
data. This further encourages supply commitment and its targeting enables a
seamless relationship in the supply chain.

3. Discuss reasons why only two of Tesco’s suppliers have fundamentally altered the
way they work as a result of TIE.

 TIE offers the ability to improve the efficiency of the relationship with
Tesco, but without the other retail partners also adopting this type of system,
the supplier is forced to operate in more traditional ways.
These more traditional forms are also the foundation of the skills and
knowledge of provider staff, and the reason for their historic success.
The benefits may not be recognized or apparent, and the provider may feel
that there is no benefit to switching. Alternatively, they may also recognize
the advantage, but feel that the cost of the change outweighs the benefits.

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