Losgistics

1. Introduction

This is a project we will describe two companies, Tesco a service company and i-Tunes a product company. This report has been written because; we have to analyse the operations and supply chains of each companies. We have also identified the strength, weaknesses, opportunities and threats of each companies supply chain management.

Tesco is one of the largest retailers in the world, offers lots of products, and iTunes is a company based on the internet, iTunes is a media player and store multimedia content developed by Apple to play, organize and sync iPods, iPhones, iPads and buy music.

The objectives of this report are describing the two companies to you and explain how they operate. These two companies are major players in their own sectors of business. These companies both have huge supply chains in their own respect. We will show you both companies supply chain and show how their supply chain works from a management level. An efficient supply chain to a company is invaluable. The logistics and supply chain of companies is huge in the success of companies being successful and innovative in business. We will show you our S.W.O.T analysis on the supply chain management of both companies. This report examines each company’s strengths, weaknesses opportunities and threats of supply chain management. Both companies are very innovative in business. At the end we compare both companies’ strengths in the supply chain management of their respective companies. Both companies are continually trying to improve their supply chain. Also to conclude our project we will suggest recommendations where both companies can improve on their supply chain management.

2. Description of Tesco Plc

Tesco is one of the world's largest retailers with operations in 14 countries, employing over 500,000 people and serving millions of customers every week.

Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End.

British multinational grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand.

The first Tesco store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Since the early 1990s Tesco has increasingly diversified geographically.

2.1. Company Profile

Headquarters Cheshunt, Broxbourne, Hertfordshire, England, United Kingdom

CEO Sir Richard Broadbent (Chairman)

Philip Clarke (Group Chief Executive)

Number of locations 6,351 stores (As of April 2012)

Revenue £64.539 billion (year 2012)

Operating income £3.985 billion (year 2012)

Net income £2.806 billion (year 2012)

Total assets £50.781 billion (year 2012)

Total equity £17.775 billion (year 2012)

Employees 519,671 (year 2012)

Principals Markets USA, Poland, and UK.

Locations 14 Countries

2.2. Which items or services offered?

Areas such as the retailing of food, books, clothing, electronics, furniture, petrol and software; financial services; telecoms and internet services; DVD rental; and music download.

2.3. Other important information

Subsidiaries: Tesco Stores Ltd., Tesco Bank, Tesco Mobile (amongst others). Tesco Stores Ltd. is the subsidiary of Tesco plc in the United Kingdom. Tesco's UK operation is divided into six formats, differentiated by size and the range of products sold. These six formats are: Tesco Extra, Tesco Superstores, Tesco Metro, Tesco Express, One Stop, Tesco Homeplus, and Dobbies.

Tesco's international expansion strategy has responded to the need to be sensitive to local expectations in other countries by entering into joint ventures with local partners, such as Samsung Group in South Korea (Samsung-Tesco Home plus), and Charoen Pokphand in Thailand (Tesco Lotus), appointing a very high proportion of local personnel to management positions. It also makes small acquisitions as part of its strategy for example, in its 2005/2006 financial year it made acquisitions in South Korea, one in Poland and one in Japan.

Tesco also has stores in: China, Czech Republic, Hungary, Republic of Ireland, Japan, Malaysia, Poland, Slovakia, South Korea, Thailand, Turkey, United Kingdom, and United States.

3. Description of Apple Inc.

Apple Inc. , is an American multinational corporation headquartered in Cupertino, California, Apple Inc. , incorporated on January 3, 1977, along with its subsidiaries, is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. It also sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications

The company was founded on April 1, 1976. In August 2012, Apple has 393 retail stores in fourteen countries as well as the online Apple Store and iTunes Store

- Products list: Mac, iPod, iPhone, iPad, Apple TV, OS X, iLife, iWork, iOS

- Services list: Apple Store, Apple Store online, Mac App Store, iOS App Store, iTunes Store, iBooks, iCloud.

Its best-known hardware products are the Mac line of computers, the iPod, the iPhone and the iPad. Its software includes the OS X and iOS operating systems, the iTunes media browser, and the iLife and iWork creativity and production suites. Apple is the third manufacturer of mobile phones after Samsung and Nokia.

3.1. Company Profile

Headquarters Cupertino, California, U.S.

CEO Arthur D. Levinson (Chairman)

Tim Cook (CEO)

Number of locations 393 retail stores (as of August 2012)

Revenue US$ 156.508 billion (2012)

Operating income US$ 55.763 billion (2012)[

Net income US$ 41.733 billion (2012)

Total assets US$ 176.064 billion (2012)

Total equity US$ 118.210 billion (2012)

Employees 72,800 (2012)

Principals Markets USA, UK, and Canada

Locations 14 Countries

3.2. How does it work?

Apple sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and resellers. The Company sells to consumers, small and mid-sized businesses (SMB), and education, enterprise and government customers. The Company operates in five segments: Americas, Europe, Japan, Asia-Pacific (Asia countries, other than Japan) and Retail.

3.3. Which items or services offered?

- Mac: Mac Mini, iMac, Mac Pro, MacBook Pro, and MacBook Air.

o Apple also sells a variety of computer accessories for Macs.

- Ipad

- Ipod

- Iphone

- Apple TV

- Software: Apple develops its own operating system to run on Macs. Apple also independently develops computer software titles for its OS X operating system. Much of the software Apple develops is bundled with its computers.

3.4. Other important information

The Company has designed a range of products, services and programs to address the needs of education customers. It also supports mobile learning and real-time distribution and accessibility of education related materials through iTunes U, a platform that allows students and teachers to share and distribute educational media online. It sells its products to the education market through its direct sales force, select third-party resellers and its online and retail stores.

4. Analyse the operations and supply chain for Tesco

4.1. Inbound Logistics

Inbound logistics is the management of goods and materials which are arriving at a business premises The Company Tesco has very strong and agile Inbound Logistics. As it upholds one of the highest positions in the market place it goes without saying that it has a great benefit when it comes to bargaining powers with its suppliers. This in turn helps them save a huge profit as they can get low costs from their choice of more than willing suppliers. To improve their inbound logistics Tesco is constantly trying to improve its efficiency by upgrading it is ordering systems, saving the company time and money. They also have a vendor list of approved suppliers that are of good quality and reliable nature. The network that Tesco is based on allows any new replenishment to be added on a rapid basis as each part of each store is directly connected to the warehouses and to the suppliers. Again, saving on costs. The organisational method they use is called the “just-in-time” method, it involves reducing all the time goods spend on each part of the supply chain and in inbound logistics these goods are expected to be moved directly onto shelves and not in storage for a long period of time. Quality control is also a major issue and great measure is taken to ensure that customers are getting the promised value for money that Tesco promise to them. These quality control measures are taken at every point in its inbound logistics.

4.2. Operations

For the company to keep running smoothly Operations is a critical area with great importance. When it comes to Tesco’s operations management, their use

...