1. Why have Tesco been so successful in the e-shopping home delivery sector
It is notice that e-shopping and home delivery play in important role in business.
Firstly, comparing to other retailers, Tesco seem rarely store which not limited range by offering maximum categories to customers. It beneficial from local stores operated by Tesco enable to picking up.
Secondly, by employing approximately 1700 drivers which ensure delivering within 24 hours.
Thirdly, it is found that the delivery service occur between Thursday and Saturday rather than traditional day like Sunday& Monday.
2. Explain why numbers of deliveries and store delivery lead times are important to store profitability
Before answer this question, it is significant to know the types of various product delivered by Tesco. The delivery items including: FMGs, SMGs, non-food category, frozen, chilled and fresh fruit.
The number of store deliveries in a week across all categories apart from SMGs and Frozen food is 21 with 7 and 14 being the respective figure for the others. A special case in ASDA where 35 FMG deliveries and M&S with 28 FMG that is relative high, and Sainsbury have 21 FMS delivery relative low. Tesco is receiving deliveries 3 times a day to most stores. Number of delivery make Tesco more responsive but not necessary efficient. Since during the transportation, it carry relative complex products that may reduce lead time and increase cost.
Oder lead time into store is faster than competitors. 18hrs for FMG line, 12-24hrs for fresh food. It is show that these lead time around 25-50% better than competitors. It is revealing that BWSs seem have slowest lead time. To some degree, the short lead time will attract customer more than who retailers with long time.
The above things make Tesco more profitable.
5. Explain why Tesco is able to deliver good and service to customers when its stock-holding is relatively low.
It is related its replenishment and better inventory management than competitors.
Tesco stock-holding is between 8 and 9 days for FMG, SMG and frozen food categories. Between 11-12days for BWSs and 22days for non-food items. Produce,