Tesco plc, the U.K.-based grocery retailer with more than 2,000 stores in 10 countries, is speeding up its supply chain and increasing warehouse efficiency with a new web-based warehouse management system to support its stores in South Korea and Malaysia, the company says. "Achieving centralized distribution is an essential component of our supply chain strategy," says Dan Culverhouse, distribution program manager for Samsung Tesco, which operates Tesco's hypermarkets in South Korea.
Tesco says the Retek Distribution Management system from Retek Inc. will enable its Samsung Tesco and Malaysia Tesco stores to better handle high-speed cross-docking and sorting of shipments into their distribution centers. Cross-docking is a method of rearranging inbound containers into particular assortments of product SKUs for delivery to stores.
Tesco adds that the system is scalable to accommodate expected growth in its Asia-Pacific markets and will serve as the new standard for warehouse and distribution management systems for Tesco's global operations. Tesco also operates Tesco.com, which processes e-commerce sales of grocery products delivered from its stores in the U.K.; the web site also sells consumer electronics and appliances.
In addition, Tesco has implemented the Retek Integration Solution, which enables Tesco to integrate its existing flat-file, batch processing architecture in an XML-based architecture that supports real-time flow of sales and inventory data with its suppliers. "We have increased our suppliers' confidence with a smooth flow of product information through the supply chain," says Graham Spillane, supply chain director with Tesco Malaysia.
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