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The Lean Supply Chain: Managing the Challenge at Tesco, by Barry Evans, Robert Mason
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At Tesco, one of the world's largest retailers, senior leadership made a simple, but game-changing, decision to focus the business on its customers rather than the conventional approach of "competing with our competitors." Their strategy was deployed by building world-leading retail and supply chain operations that are both effective in delivering what customers wanted and efficient in performance and cost metrics.
The Lean Supply Chain explores how the retailer used lean thinking, loyalty and simplicity and grew under a determined supply chain strategy to achieve their dominant UK and global position. Logistics professionals Evans and Mason look at Tesco's origins, the development of their supply chain, the continuous improvement and current developments. They include examples of Tesco's successful operations, including their rapid roll-out of store-based grocery home-delivery and the change of focus from supermarket and hypermarket development to building a network of neighborhood convenience stores and mid-sized stores in cities -- Tesco Metro and Tesco Express stores.
With examples and advice for supply chain management professionals, this book uncovers why Tesco is as successful as it is today and how they did it.
- Sales Rank: #1090979 in Books
- Published on: 2015-09-28
- Original language: English
- Number of items: 1
- Dimensions: 9.21" h x .65" w x 6.14" l, 1.00 pounds
- Binding: Paperback
- 312 pages
Review
"For many years Tesco has been regarded as a world-class retailer. In this insightful book the authors detail the way in which Tesco has utilized best-in-class practices to create a highly effective and efficient supply chain. It's timely. The authors look in detail at how Tesco have been able to build a world-class supply chain. It should appeal to a wide audience-not just those interested in retail." (Martin Christopher Emeritus Professor of Marketing and Logistics, Cranfield School of Management)
"Barry Evans and Robert Mason have written an essential guide not only to Tesco's development of their supply chain but also to the imaginative developments which took place within and beyond the UK's supply chains over the last five decades. As the director responsible for introducing modern supply chain management into Rowntree and Nestlé, I worked closely with Tesco management on greatly improving service both to them and to their customers, our consumers. While the UK food business remains highly competitive, all supply chain participants continue to work together to benefit all through jointly tackling key supply chain issues, and also by sharing point-of-sale data immediately in order to react well to consumer purchases. The main UK manufacturers, retailers and wholesalers cooperatively developed world class Electronic Data Interchange of orders, invoices, product and location master data so that accurate data would be actioned without delay or error. Barry and Robert very well illustrate that supply chain managers cooperate so that supply chain can be truly competitive, to the great benefit of the consumer as well as of the businesses. (Professor Tom McGuffog FCILT FCIPS)
"Highly interesting and informative analysis of the initiatives Tesco developed to establish a world-class retail supply chain. The step-by-step explanation of the approach used is essential reading for practitioners and students of supply chain management. Well done." (Dr. James Aitken Head of Department for Business Transformation, University of Surrey)
"Any book that analyses supply chain strategies followed by leading retailers is bound to be successful. This book by Evans and Mason examines Tesco's supply chain strategies in a clear and succinct manner. It will be excellent reading for academics, students, retail managers and supply chain practitioners." (Professor Michael Bourlakis Chair in Logistics and Supply Chain Management, Cranfield University)
"This book provides an in-depth understanding of the constantly changing field of Lean supply chains and the approach that Tesco has taken in developing theirs into a world-class operation. It is an essential read for anyone interested in supply chain management as it provides great insight as to how to unlock its true value as a core element of a retailer's competitive advantage." (Monica Hope Teaching Fellow, Retail and Marketing, University of Surrey)
"This book is a superlative in-depth case study of how Lean concepts, together with concepts from marketing, innovation and strategy, have combined to give Tesco an edge in grocery retailing. The supply chain and improvement chapters would be interesting and valuable to anyone in large-scale retailing. In particular the sections contrasting conventional wisdom with Tesco's counter-intuitive answers are illustrative of the effectiveness of Lean thinking outside manufacturing. Following Tesco's history from early days to international giant, and their learnings along the route-what went right and wrong-provides a classic longitudinal study showing the importance of sustained leadership and purpose." (John Bicheno Founder of the MSc Lean Post-Graduate Degree at LERC)
"When I joined the Lean Enterprise Research Centre in 1997 Tesco was one of the supply chain development network research partners leading the challenge on constraints in supply chain management. Subsequently, Tesco have consistently worked with Cardiff University developing innovative and creative new thinking to benefit their business, consumers and staff. In 1997 Tesco were lagging in the UK grocery sector. Shoppers would have not expected to buy clothes or other household goods under a single roof or have timed deliveries. Most would have remembered Green Shield stamps if asked about loyalty and discount schemes. In the intervening period the Tesco story has been that of domination balancing the value for customers, staff and the business. While recent performance issues have caused shock these do not diminish the breakthroughs achieved for the retail sector. This book provides transferable insights in Lean supply chain management, strategy and change for academics, students and practitioners alike. The Lean Supply Chain reflects the need for all supply chains to understand customer value, challenge the way things have always been done and break through to higher levels of performance. This is a very worthwhile read." (Dr. Ann Esain Former Researcher with Lean Enterprise Research Centre, Cardiff)
"[F]ascinating – for its timing as much as the overview it provides into one of the world’s most prominent retailers...Manages to offer lessons and best practices that are relevant across industries and functions while telling the Tesco supply chain story sympathetically and in-depth." (Kelly Barner Buyers Meeting Point)
"Much has been written about the Tesco supply chain and ingredients for its success-not least of all Lean thinking. What isn't so well recognized is that this journey began, and was very advanced, several years before the perceived introduction of Lean principles in 1995 by a homegrown talented team of people drawn from all supply chain functions. It was this team that created the bedrock for much of what is in place some 20 years later. What the Lean process did help with is creating a framework to extend this methodology to other functions outside the Tesco internal supply chain. This book shows that the principles of Lean do work-but only when they are matched with people who can make the difference. If there is one thing you will learn from this book and the Tesco experience it is that great people make a great company." (Barry Knichel Former Supply Chain Development Director, Tesco)
"Robert and Barry provide a well-researched and fascinating insight into the Lean philosophy that underpinned the strategies of Tesco in the era of Leahy and Clarke. Their work brings alive how the rigorous pursuit of Lean principles enabled the transition of an ordinary UK supermarket chain into a customer-centric contrarian global winner." (Steve Spall Former Supply Chain and Distribution Development Director, Tesco UK)
"To study Tesco with such intimacy provides a fascinating insight into the logic that underpins the Tesco model and its many evolutions that have provided a sequence of change as the organization has learned new ways to compete. The authors provide a clarity and insight, over time, of how the forces of business and decisions have shaped the prosperity of this British household name. The two authors have enjoyed a remarkably privileged position and have maintained the study for many years which makes for a fantastic read and the most insightful understanding of this British mega-organization. The book is more than a book about a retailor though-it is a book on business, of challenge and dynamic markets, and how Tesco has made sense of its environment, shaped some of the market by defying tradition and convention, and how it has reacted to the turbulence of a truly global sector. There is much to learn from this account and many lessons that should inspire managers in occupations and sectors that are far beyond retailing. It is a blend of the thought-provoking and also of the practical aspects of running a modern business." (Nick Rich Professor of Socio-Technical Systems (Operations Management), Swansea University)
About the Author
Barry Evans' early career involved a variety of roles in Logistics and Distribution with brewery Watney Mann, food business Rank Hovis McDougall and UK postal service Royal Mail. This was followed by roles in Tesco plc including Lean Process Manager in Tesco Supply Chain Development where he developed ways in which lean thinking could be applied in Tesco. He has also joined the Lean Enterprise Research Centre at Cardiff Business School as a Senior Research Associate.
Robert Mason is a Senior Lecturer in Logistics and Operations Management section (LOM) at Cardiff Business School and has led many business research projects with Tesco as a partner.
Most helpful customer reviews
1 of 1 people found the following review helpful.
A Fair Balance of Scandal Coverage and Cross-Industry Best Practices
By Kelly McCarthy Barner
The supply chain may be the best organized in the world, but if trust and transparency are not there the commercial results will not materialize.
- The Lean Supply Chain, p. xxiv
The Lean Supply Chain: Managing the Challenge at Tesco (September 3, 2015, Kogan Page) by Robert Mason and Barry Evans is fascinating – for its timing as much as the overview it provides into one of the world’s most prominent retailers. The book’s timing is impressive (and critical) given the turbulent few years Tesco has had: including the horsemeat scandal in 2013, and an accounting scandal in 2014.
While this book is not solely about the scandals and their exact aftermath, it acknowledges them right up front and includes as many details as the publication timeline would allow – and probably a few more than that. The Preface is an absolute must-read and would stand as a B-school case study in its own right.
The basis of the book is the result of joint research done by Tesco and Cardiff Business School in the U.K. Author Barry Evans worked for Tesco’s supply chain organization for a decade. There is clear admiration for Tesco on the part of the authors, resulting in a book that is more of a calm investigation of a complex supply chain’s strengths and weaknesses than a post-crisis exposé.
The authors start by clarifying that their (and presumably Tesco’s) definition of supply chain is broader than usual, inspired by Michael Porter’s ‘value chain’ approach.
The grocery retail industry is highly competitive and operates on razor thin margins. Since, as pointed out in the book, the products offered are effectively commoditized, Tesco has had to differentiate on services, the environment in their stores, and the end-to-end consumer experience. Their investments into improving consumer sentiment are central to their business strategy.
The other core element of Tesco’s strategy is simplicity: even when they are addressing complexity. It must be simple to convert decisions into actions, and therefore systems and processes do not need to be overly complicated. In fact, this becomes a built in feedback cycle. Tesco believes in immediately converting insight into action and then they track the impact of their actions to see if they had the desired effect.
From an inside business perspective, Tesco applies simplicity in the alignment of goals, objectives, and KPIs across functions. In fact, Tesco believes that having different goals/objectives for each function allows one group to soar while another sinks. In the end, if all groups are not functioning well together and independently, the end service provided to the customer suffers.
Tesco has always leveraged data in their pursuit of customer value creation. Back as far as the late 1990’s they were treading into early ‘big data’ waters, looking at huge volumes of shopper data from their loyalty card program but needing to build a program and the supporting capabilities to apply it effectively.
The Lean Supply Chain somehow manages to offer lessons and best practices that are relevant across industries and functions while telling the Tesco supply chain story sympathetically and in-depth.
0 of 0 people found the following review helpful.
Recommendable
By Autamme_dot_com
Tesco is a major British supermarket that had enjoyed a period of rapid growth in recent years, requiring the use of a highly organised, functional supply chain to keep the shelves of its stores laden with goods. This book takes a look at both the art and science of operating a Lean-inspired, functional supply chain and shows how a large retailer could utilise and benefit from this activity.
This is written with a fairly specialist, narrow audience in mind. It is by no means beginner-friendly, yet with a degree of perseverance it could still be a little goldmine for the uninitiated. For those who need to live and breathe this stuff, await the experience! The authors have done a good job in crystallising the way the company and its senior management team pivoted from focussing on their competitors and how to beat them to putting the customer’s needs truly in the spotlight and working to service them. This change required the support of an efficient supply chain. The whole process is placed under the microscope from origin to the modern day, from improvement processes to the things that did not go according to plan. It is quite a candid, open read.
It might be fair to describe this book as a mega case study about Lean concepts, with strategy, business development, marketing and operations all bolted on for good measure and a living, breathing subject used to highlight the theory and show how it can be used in practice. For a company of Tesco’s size, changes can offer a dramatic change to its bottom line, such as switching to a daily delivery from suppliers shaved GBP 400m off its cost base. Savings could be found in many areas, such as how items are stocked on shelves, how logistics are coordinated and how smaller batch-produced items provided at a higher frequency were better and more able to keep up in demand.
Even the smallest of companies can potentially learn a lot from this book, even if the savings are more modest. It is hard to give this book anything other than a ringing endorsement. As you will expect from a Kogan Page book, it is cleanly designed and comes complete with a highly detailed index and a packed bibliography.
So, a specialist read that many generalists would also benefit from reading.
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