An examination of the impact of effective supply chain management on company profitability in the retail industry: A Case Study on Tesco, UK

Harvard, 2500 Words

Table of Contents

Table of Contents

1       Introduction

2       Rationale of the Study

2.1        Research Aim and Objective

2.2        Research Questions:

3       Literate Review:

3.1        Supply Chain Management:

3.2        Factors determining profitability regarding SCM

3.3        Implementation of SCM

3.4        Effect of SCM on different level of profitability:

3.5        Conceptual Framework:

4       Research Design and Methodology:

4.1        Research philosophy:

4.2        Types of Investigation:

4.3        Data Collection:

4.4        Sampling and accessibility:

4.5        Data Analysis Plan:

4.6        Limitation of Research:

4.7        Timetable:

5       Conclusion:




In the competitive era of business, every organization is concentrating on reducing costs of products and increase qualities. Organizations are very much conscious about collecting raw materials and ingredients that is needed to make finished goods. In this context, organization concentrates on its supply chain management in order to reduce costs and increase profits. Effective supply chain management has strong relationship with profitability. When a company is able to manage effectively its supply chain management, then obviously it reduces it costs. As a result of this, the profit is increasing.

However, the supply chain management refers the activities of collecting raw materials and ingredients from source of origin among the suppliers, customers and companies (Chopra and Meindl, 2007). It is basically a process of managing the flow of raw materials that is collected for making finished goods and services and making link to suppliers and customers. This is a process of internal logistics that is very much important for any type of retail industry. Because the effectiveness of getting profitability is depending on effective supply chain management (Finell, 2007). For instance, we can say about Tesco PLC of UK who is largest retailer grocery company established in 1919. In terms of profit, Tesco is considered as the world’s third retailer company.

As it is necessary to increase the profit of any retail company. Company uses many options and calculation for increasing profit. But the actual truth is that reducing cost of product can increase profit instantly. That’s why supply chain management is considered as the ultimate option that can have large positively impact on profitability of retail industry like Tesco. Moreover, a holistic and well-designed supply chain management can help to increase profit of Retail Company. Thus, in this paper, the researcher will discuss about the examination of effective supply chain management on company profitability in retail industry like Tesco PLC UK. This report will demonstrate the components of supply chain management and how it effects on company’s profitability.