Tesco  has 5,380 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

International operations

Tesco entered Turkey in 2003 and uses the trading name "Kipa". Tesco remains focused on building infrastructure

in Turkey to complete its expansion plans and has already introduced the Tesco Express format into Turkey.

There are plans to increase the rate of expansion as basic infrastructure is built. The first Tesco Extra in

Turkey opened in Izmir, Turkey, Tesco Kipa Extra Balçova in September 2010

Some local suppliers of Tesco

CARRIGALINE FARMHOUSE CHEESE LTD.CONNOLLY MEATS LTD.

THE COUNTRY COOKING COMPANYIN FOR LUNCH

LOVELY LEE EGGSWILD ORCHARD

Working with suppliers

Tesco value long-term relationships and have more than 1,500 suppliers with whom we have been working for

five years or more.*They committed to sharing customer views with

suppliers as well as listening to suppliers to understand their perspective.

For example, during 2007 we developed a system in the UK called TescoLink through which suppliers can access

data such as store level sales of their products.

* They have regular dialogue with their suppliers and try to develop confident and honest

relationships so that concerns can be resolved and they can work together effectively. 

* They also use formal processes to understand suppliers' views and identify how we can work

together better.

Supplier ViewpointTesco carry out an anonymous survey, called

Viewpoint, to understand what suppliers think of us and identify areas for improvement across the

business.

For example, They used Viewpoint to survey 200 suppliers in South Korea in 2007. They ranked us first

of their three leading customers and said we were strong on fairness in work processes,

communications, information sharing and trust in trading. Tesco identified areas of improvement, which

are reflected in our 2008 Community Plan projects.

As you know Tesco is a global company so they have many stores at many countries this mean they have to have good relationship with this

countries goverments and other agencies such as health agency,tax departments etc..

Tesco: Network Re-design for Sustainable Growth

A new warehouse network

As part of an ongoing network optimisation programme in the UK, Tesco has made significant infrastructural changes over the last few

years, involving a number of new warehouse openings, site closures, and management transfers. Tesco moved out of the Crick

regional distribution centre and the Wincanton-operated Middleton 1 depot to take on more network capacity at a new composite

distribution centre at Livingston and a new purpose-built RDC at Lichfield. Tesco has also opened up a new national distribution

centre at Goole for slow-moving grocery and general merchandise non-food lines.

Delivering an integrated transport solution

Within the transport network, there has been clear focus on driving efficiencies by developing the primary

consolidation network, whilst the trucking stations continue to play a key role in allowing depots to concentrate on their own store pick and delivery

operations.

This set-up naturally allows for better product grouping, so that products arrive together into store

on one dedicated delivery.

Tesco's Environmental TargetsOn the environmental agenda, some of Tesco's challenging

targets include:*

*Tesco’s own distribution fleet aims to reduce emissions per case by 50% by 2012

*Tesco is a signatory of the Carbon Trust and is now involved in a trial to measure its carbon footprint across five major food categories covering tomatoes, potatoes, orange juice, light bulbs and washing detergents.

*Tesco has a commitment to reduce packaging by 25% on both branded and non-branded products over the next 3 years. In order to track progress against

its commitment, Tesco has rolled out a packaging scorecard to suppliers.

Technology solutions to drive service

•New technology developments help Tesco to achieve its efficiency goals and has included the first phase in the roll out of Advanced Shipment Notifications (ASN’s) across the

supply chain and pallet-level RFID trials between distribution centres and stores in Northern Ireland.

*Tesco Link has become the primary IT system for the sharing of supply chain information and the development

of collaborative supplier relationships, providing Tesco suppliers with EPoS data, in-store and warehouse availability levels and service level performance

information.

The scale of the challenge

Moving up to two billion cases of product, the Tesco distribution network holds over 76,000 SKU's and 95% of volumes are delivered via centralised distribution.

Re-designing the supply chain infrastructure to ensure sustainable future growth is a key challenge with 29 warehouses and over 2,000 vehicles travelling 659

million kilometres across the primary and secondary transport operations.

Specific characters of network ( Commercial )

*İts very hard to control *Many several companies

*Complicated realations

Impacts of Changes

Tesco can survival depends on the local per capita income level and consumers market situation. In general when a region's per capita income level between $500 -1000,supermarket industry will 

enter the local market.

* The situation of local industries development will affect Tesco.Because Tesco has a widely range operate,so if various industries in the region are underdeveloped, they can not purchase locally and have to transfer goods from further afield or establish a local distribution center,it will increase 

the cost of delivery of goods* The local transport facilities and the level of per 

capita car possession.it is very important for Tesco’s turnover,Because like Tesco this kind of supermarket they always settle suburban areas.

Management of network and individual relationships

Tesco should be trusted to their consumers,and try their best to meet consumers needs. They 

give commitment, such as applying the safe food, reasonable price and comfortable service and so on. If they reach their commitment in the long term, it will be turned into the trust. Trust which develops through social interaction between 

individuals is more important. They will get more and more clients. Certainly it will be highly 

profitable.