- Improve availability of stock , which means that there is more of the product at the warehouse so if any of the Tesco Retail shops run out of a product they are able to get it from the warehouse ASP.
- Improve choice, means that Tesco should have more Varity products e.g. drinks like strawberry, mango ect
- Offer up-to-date products, this means that Tesco should latest merchandise e.g. if a new games comes out Tesco should have it.
Sourcing from UK & global
Tesco generally source their products from the UK and some they source it globally, the advantages that Tesco has from sourcing the merchandise from UK is that it takes less time for the product to arrive, for the reason that merchandise will be travelling in a shorter distance. Sourcing merchandise from UK is easier to monitor and to communicate with the distributors.
On the other hand Tesco does also source their goods from internationally, but the disadvantage of sourcing goods from internationally is that it will be difficult and costly. This is because Tesco has to pay there goods to be delivered to UK which is expensive they all so have to pay insurance ECT
Suppliers
Without suppliers Tesco would have not been successfully, Tesco relies on suppliers because of its Reputation, Brand Name and Image. With big suppliers Tesco is able to less well known brands with its own branded so customers will have the choice in which brand they want to buy,
Distributor
Distributors are organisations that work on behalf of international company’s that supplies goods to Tesco stores such as T W Truck Equippers Inc is a distributor .
Logistics process
There are many logistics process which are
With these process goods are able to be transported in Europe and globally,
There are some organisations that use RORO ferries, piggyback systems and euro channel tunnel.
Tesco generally use road to transport the merchandise, they also use water and air to receive goods from abroad
Storage location
Tesco tend to have storage near the motorways so they are able get the goods straight on the road and so that the goods can arrive on time, they also have it on the motorways because it is cheaper.
Storage warehouses are very important to Tesco because without storage warehouse Tesco would have no where to put the products.
When a customer orders goods, the goods are brought from the stockroom or from the shop, the space of the stockroom must be big to accommodate the goods, the benefit of stockroom is that the staff there are able to break, create and combine bulk if many Tesco stores ask for the same goods. Tesco distribution centre are usually on the motorways so that goods can be transported straight away and that no time is wasted.
Using ICT in the supply chain
Tesco use IT to run the business, they use IT through the following ways
- Bar-coded merchandise
- Electronic reordering
- Sharing with trading partners
- POS data sharing with suppliers
- Consumer information systems
- Radio-frequency identification (RFID)
Distribution of e-retail products and services
E-retail is shopping online where customers can by products and service over the internet, Tesco also sell the products online at , normally Tesco workers assemble orders in store and some products are assembled in special warehouses using scanners and conveyor belts.
The advantage of e-retail is:
- Customers can buy products at the comfort of the home
- It’s a self service
The disadvantage of e-retail is
- Online fraud
- Customers may only order few products
AMAZON
Distribution Channels
Without the Diversity of Distribution Channels in the Retailing Industry there would have not been Amazon at all.
Distribution Process
At Amazon every product comes from a warehouse and goes straight to the customer, here’s an example of a book process:
- The author writes all the ideas in a book or an electronic word processor
- The work is published and then packaged by book pubilshers
-
Then it is Distributed to Amazon and other retail shops
- Then it is delivered to the customer
The use of logistics in Amazon
Without Logistic organisations Amazon will not be able to operate, Amazon relies on logistics because without logistics organisations Amazon is not able to send the goods to their customers. Amazon also use logistic warehouse to store the goods.
Amazon uses the following logistics to deliver their goods
Retail control of the supply chain
Amazon does not have their own brand , they sell many brands, they sell well known brands and less known brands so customers can have a choice of buying the same product but different brands, by Amazon doing this they are able to sell more because the customers will have verity of choice between the brands.
Provision of products enhancing functions
Amazon does provision of products in three ways which are
- Transport,
- After sales service
Transportation is so important to Amazon because if there is no mode of transport Amazon is not able to send their goods to their customers for this reason transportation is vital to Amazon.
Amazons keeps the goods in a warehouse which is close to motorways for reason that when an order is placed they are able to send it straight away without time being wasted.
Amazon offer after sales service to all its customers that buy electrical goods for the reason that every retail shop offers offer after sales service to is customers and also to satisfy the customer’s needs.
Supply chain
For Amazon to have a good supply chain Amazon must have the following categories:
- Offer up-to-date products meaning that Amazon should have latest gadgets like if the new iphone comes out Amazon must have it
- Improve choice meaning that Amazon should have Varity of products and goods for the customer to choice
- Improve availability of stock meaning that Amazon should have many well known products in the warehouse so if a customer wants to by a product it should be in stock
- Reduce stock levels meaning that Amazon should sell the good as quick as possible so that they can get new goods in the warehouse
Sourcing from UK & global
Amazon generally source the products from the UK and across the world , Amazon sources the products across the world because it sells many goods and it has warehouse across the world , the disadvantage of sourcing international is that it is difficult and expensive , but their advantage of sourcing from the UK is that it is cheap and easy to monitor the goods.
Suppliers
Without suppliers Amazon would not have anything to sell, so Amazon relies on suppliers for the reason that suppliers have:
- Reputation
- Brand Name AND Image
- Price and payment terms
- Reliability and support
Distributor
Distributors are organisations that work on behalf of international company’s that supplies goods to Amazon.
Amazons distributors are:
Logistics process
As I already said that there are 5 logistics process which are
With these procedures merchandise are able to be transported in Europe and globally,
There are some organisations that use RORO ferries,( RORO ferries are ferries designed to transport goods from one place to another) piggyback systems and euro channel tunnel. Amazon generally use road to transport the merchandise,
Storage location
Amazon has the warehouse near the motorways so that they are able get the goods straight on the road and so that the goods can arrive on time, Amazon also have to keep in mind about the space because if they order more products from suppliers and realize that there is no space then they are in a big loss. The warehouse that Amazon uses is also the place where customer orders are sent to and where customers’ product comes from.
Using ICT in the supply chain
IT is very important to Amazon because without IT customers are not able to place orders, Amazon use IT to:
- To receive customer orders
- To communicate with the customers through email
- To send orders to customers
- Sharing with trading partners
- Electronic reordering
- Consumer information systems
Non-conventional channels
Grey market
Is a private market in which merchandise are bought and sold at prices lower than the official price set by the official company.
Black market
Black market is the trade of goods and services that are illegal which involves in selling of stolen goods, unregistered handguns and certain drugs like her
Distribution of e-retail products & services
Is meant by online ordering, the advantage of e-retail is that it is self service where customers can place orders and they don’t require the help from a member of the staff but the disadvantage is that there are online credit fraud which will make customers not buy products from the internet for the safety.
Pets @ Home
Distribution Process
“A distribution is the process of moving a product from its manufacturing source to its customers.” (Definition taken from )
At Pets at Home many products arrive at the store by road. an example of an
Distribution Process at Pets at Home is (Orchard Manor Guinea Pig and Rabbit Hutch):
- Trees are cut then are made in to woods
- Woods are brought by a company that makes the hutch
- The hutch is sold to Pets at Home
- Then the customers buys the hutch from Pets at Home
The use of logistics in Pets at Home
Pets at home use logistics to store the goods and to deliver the goods to the customers.
A pet at Home uses the following logistics to deliver their goods
Retail control of the supply chain
Pets at home sells the own brand with other know brands for the reason that the can control the supply chain, by selling the own brand Pets at Home can have more control over their products and sell at the price they think it will be suitable but by selling different brands Pets at Home must sell at the same price as other pets shops sell for the reason that if they sell more cheaper then they will not make that much profit but if they sell at a higher price then no will buy it so they have to sell it at a price that other retail shops sell it. Also by them selling the own brand it will be a lot easy for them to transport the good to the stores as it only get supplied to them.
Provision of products enhancing functions
Pets at home does Provision of products in three ways which are:
- Transport,
- Storage
- After sales services
All of these are important to Pets at Home, transportation is very important to Pets at Home because with out transport Pets at Home would not be able to send the goods to the customers, storage is also important because with out storage Pet at Home would not be able to store any goods for this reason they need a storage place.
After sales service is very important to customers because if any of the products gets faulty then the customers would not be satisfied for this reason Pets at Home offers after sales service.
Supply chain
A supply chain has three key parts which are:
- Manufacturing
- Supply
- Distribution
For Pets at Home to have a good supply chain they must have the following categories
- Offer up-to-date products meaning that Pets at home should have latest products in stock
- Improve choice meaning that Pets and Home should have Varity of products and goods for the customer to choice
- Improve availability of stock meaning that Pets at Home should have many well known products in the warehouse so if a customer wants to by a product it should be in stock
- Reduce stock levels meaning that Pets at Home should sell the good as quick as possible so that they can get new goods in the warehouse
Sourcing from UK & global
Pets at Home generally source the products from the UK and across the world, Pets at sources the products across the world because it sells many goods and it has warehouse across the world, the disadvantage of sourcing international is that it is difficult and expensive, but their advantage of sourcing from the UK is that it is cheap and easy to monitor the goods.
Suppliers
There are many suppliers of Pets at home i will only mention few they are:
Pets at Home rely on suppliers for the following reasons:
- Reputation
- Brand Name AND Image
- Price and payment terms
- Reliability and support
Distributor
Distributors are companies that work on behalf of international company’s that supplies goods to Pets at Home.
Logistics process
There are 5 logistics process which are
With these procedures merchandise are able to be transported in Europe and globally,
There are some organisations that use RORO ferries, piggyback systems and euro channel tunnel. Pets at Home generally use road to transport the merchandise to its customers.
Storage location
Are very important to Pets at home for the reason that they sell large products, so these products are stored in Warehouses.
Using ICT in the supply chain
IT is very important to Pets at Home because without IT customers are not able to place orders, Pets at Home use IT to:
- To receive customer orders
- To communicate with the customers through email
- To send orders to customers
- Sharing with trading partners
- Electronic reordering
- Consumer information systems
Distribution of e-tail products and services
Distribution of e-tail products and services is meant by online shopping, it is very simply and does not require any staff. The advantage is that it is self service and customers can make orders at the comfort of the home .