The Impact of Third Party Logistic on the Supply Chain Process in The Case Of Tesco

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

In the research study, we have analyzed the impact of third party logistics on the supply chain management process in the case of Tesco. The third party logistics greatly impact the supply chain process by affecting the flow of products from supplier to the consumers eventually. The process of Supply Chain Management includes the flow of product, the flow of information and the flow of financial information. The Supply Chain Management plays an important role in determining the success of the company. Tesco is one of the largest retailer companies in the world. It has been made possible due to the proper execution of the supply chain process. However, the company is still making changes and improving its supply chain process day by day. The effective third party logistics and supply chain management has made the Tesco to be one of the largest retail companies in the whole world.The company has outsourced very little portion of the warehouses and the distribution operation to the third-party logistics. The third party logistics Wincanton is providing logistic services in three stores of Tesco. These stores are in Daventry, Middleton and Snodland. Tesco has also been availing the services of the Import Services as the third -party logistics. The outsourcing of the transporting service is the important function that affects the efficiency of the company. If the management of the logistics performs its function effectively, it can allow the company to achieve greater profits in the future. There are associated different advantages with the effective third party logistics. The advantages of the third party logistics include improvements in the efficiency of labor, increase in the efficiency of the IT, improvement in the customer's satisfaction and the effective implementation of the supply chain management systems.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Outline of the Study1

Background of the Research2

Problem Statement5

Research Aims7

Research Objectives8

Significance of the study9

Rationale of the study10

Research Questions11

Electronic data base searches11

CHAPTER 2: LITERATURE REVIEW12

Supply Chain Management12

Third- Party Logistics13

Overview of the Company14

Tesco Plc and the Third-party Logistics15

Pitfalls18

Strategic objective in the Supply Chain23

Supply Chain Management (SCM)23

Retail Sector25

Principles for managing the Supply Chain29

Principle No. 1:29

Principle No. 2:29

Principle No. 3:30

Principle No. 4:30

Principle No. 5:30

Principle No. 6:31

Principle No. 7:31

Supply Chain Decisions31

Location Decisions32

Production Decisions32

Inventory Decisions33

Transportation Decisions33

Impact of Effective Third Party Logistics34

CHAPTER 3: METHODOLOGY36

Research Plan / Methodology Perspective36

Research Design36

Rationale for a Qualitative Study38

Rationale for a Quantitative Study39

Philosophical Framework or Paradigm39

Appropriate Method42

Selection of Methods42

Data Collection Methods43

Instrument for data collection45

Data Analysis45

Justification Method45

Strength and weakness of the mixed research46

Strengths46

Weaknesses47

Literature Search47

Reliability/Dependability47

Validity50

Ethical Considerations52

CHAPTER 4: DISCUSSION AND FINDINGS53

CHAPTER 5: CONCLUSION63

Recommendations67

REFERENCES68

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