D1 UNIT 29
Evaluating the distribution network for Tesco
Tesco is a supermarket that was founded in 1919 but the store itself was first opened in 1929. Tesco is a
food retailer even though over the years it has expanded its range as it now sells clothing, electronics,
toys and stationary. Today Tesco sells a wide range of food that suit the needs of all their customers.
Advantages and disadvantages of the distribution network
In this essay, I am going to talk about the pros and cons of using certain suppliers, wholesalers, shipping
methods, being responsive to customers and the cost of the distribution network.
National/domestic suppliers
The advantages of Tesco using suppliers within the UK include being able to sell fresh and organic food
for their customers as well as being able to buy products quickly and it would be cheaper. Also, if the
supplies are in the UK then Tesco know what the economy is like and would be prepared when suppliers
demand higher prices.
The disadvantages would include lack of choice as they have a smaller variety to choose from. The prices
might not be as cheap for Tesco as it would to buy the same or similar products elsewhere.
International suppliers
The advantages of using international suppliers is that there is a wider range to choose from and Tesco
can get products from around the world to suit the needs of their customers. Other countries that sell
products cheaply are helpful to Tesco as they can buy the items for a cheaper price and sell them to
their customers at a low price while still making a profit.
The disadvantages of using international suppliers is that there could be language barriers or strong
accents whish can make it difficult for the staff at Tesco to communicate with the person on the other
end. Countries that usually sell their products to Tesco cheaply may fall in terms of economy and might
start demanding Tesco to pay more.
Wholesalers
The advantages of buying from wholesalers is that they can buy small amounts international food so
customers have a wider range to choose from. Also, Tesco can buy their products in smaller batches that
is enough for them to sell as the international products won’t be as popular as others as they aren't
essential for every day needs.
The disadvantages are that wholesalers might discontinue a certain product that might have gotten a lot
of popularity with Tesco customers. Another disadvantage would be being that wholesalers are slightly
more expensive than suppliers as they must make a profit for themselves.
Shipping methods
There are a range of shipping methods Tesco can use to distribute their products and each have their
pros and cons.
Road
The advantages of using vans is that it is good for distributing products that are with in the UK. Also,
Tesco use their vans to advertise themselves by putting their logo and tagline on it so that others on the
road can see it and might be tempted to shop their because their logo is in their mind now.
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Evaluating the distribution network for Tesco
Tesco is a supermarket that was founded in 1919 but the store itself was first opened in 1929. Tesco is a
food retailer even though over the years it has expanded its range as it now sells clothing, electronics,
toys and stationary. Today Tesco sells a wide range of food that suit the needs of all their customers.
Advantages and disadvantages of the distribution network
In this essay, I am going to talk about the pros and cons of using certain suppliers, wholesalers, shipping
methods, being responsive to customers and the cost of the distribution network.
National/domestic suppliers
The advantages of Tesco using suppliers within the UK include being able to sell fresh and organic food
for their customers as well as being able to buy products quickly and it would be cheaper. Also, if the
supplies are in the UK then Tesco know what the economy is like and would be prepared when suppliers
demand higher prices.
The disadvantages would include lack of choice as they have a smaller variety to choose from. The prices
might not be as cheap for Tesco as it would to buy the same or similar products elsewhere.
International suppliers
The advantages of using international suppliers is that there is a wider range to choose from and Tesco
can get products from around the world to suit the needs of their customers. Other countries that sell
products cheaply are helpful to Tesco as they can buy the items for a cheaper price and sell them to
their customers at a low price while still making a profit.
The disadvantages of using international suppliers is that there could be language barriers or strong
accents whish can make it difficult for the staff at Tesco to communicate with the person on the other
end. Countries that usually sell their products to Tesco cheaply may fall in terms of economy and might
start demanding Tesco to pay more.
Wholesalers
The advantages of buying from wholesalers is that they can buy small amounts international food so
customers have a wider range to choose from. Also, Tesco can buy their products in smaller batches that
is enough for them to sell as the international products won’t be as popular as others as they aren't
essential for every day needs.
The disadvantages are that wholesalers might discontinue a certain product that might have gotten a lot
of popularity with Tesco customers. Another disadvantage would be being that wholesalers are slightly
more expensive than suppliers as they must make a profit for themselves.
Shipping methods
There are a range of shipping methods Tesco can use to distribute their products and each have their
pros and cons.
Road
The advantages of using vans is that it is good for distributing products that are with in the UK. Also,
Tesco use their vans to advertise themselves by putting their logo and tagline on it so that others on the
road can see it and might be tempted to shop their because their logo is in their mind now.
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