May 17, 2020

Tesco’s new supply chain plan for fresher produce and reduced food waste

Tesco
food waste
Logistics
Efficiency
Admin
3 min
Tesco’s new supply chain plan for fresher produce and reduced food waste
Supply chains play a vital role in the quality of a product, especially when that product is perishable. The more efficient and well-organized a supply...

Supply chains play a vital role in the quality of a product, especially when that product is perishable. The more efficient and well-organized a supply chain becomes, the faster products make it to retail shelves—maximizing its appeal for consumers, and maximizing sales for stores before the product reaches its sell-by date. According to a new report, UK supermarket giant Tesco is revamping its own supply chain with an initiative that promises to get produce to shelves two days sooner than before, a move that means fresher food and a major reduction in food waste.

RELATED CONTENT: Tesco renews with XPO Logistics for a further five years

According to a profile in The Guardian, Tesco plans to achieve this new efficiency by cutting a food packaging stage from its supply chain. Improved storage technology now allows Tesco to have produce shipped directly from produce suppliers to its stores without the need for an extra packing step, and as Tesco explained to the Guardian, this translates to real tangible benefits for its consumer base:

“For millions of our customers this move will mean having up to an extra two days in which to enjoy some of the most popular fruit and vegetables”, said Matt Simister, commercial director of food at Tesco. “The extra days of freshness will particularly benefit customers who are pressed for time and will mean they are less likely to throw away food.”

But there is more to it than just extra time to enjoy those fruits and vegetables—it’s about avoiding the latter scenario, where consumers waste time and money on food that expires before it’s used. Food waste has been a huge concern for Tesco, both internally and among consumers once the food had left the stores, and in recent years the grocer has been looking into a variety of ways to solve the problem.

RELATED CONTENT: Tesco CEO blogs on food waste

Simplifying the supply chain is an important step in solving that problem. Dr. Richard Swannell, director of sustainable food systems for the UK government’s Waste and Resources Reduction Action Programme (WRAP), explained to The Guardian that bringing fresh produce to market more quickly could make a significant difference in the amount of food waste that is thrown out on a daily basis:

“Our report estimates some 250,000 tonnes of food waste could be prevented by a one day increase in product life – food wasted by households and by the supply chain. Preventing this volume of waste means UK shoppers have a potential shared saving of up to £500 million a year.”

By revamping its supply chain for increased efficiency, Tesco is making progress in its mission to decrease food waste. If it’s successful, it could inspire other chains to start looking at their own supply chains to start making sustainability-minded changes of their own.

[SOURCE: The Guardian]

 

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Jun 21, 2021

Pandora and IBM digitise jewellery supply chain

supplychain
IBM
Pandora
omnichannel
2 min
Jewellery retailer Pandora teamed with IBM to streamline supply chains as sales of hand-finished jewellery doubled across ecommerce platforms

Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery. 

The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales. 

A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.

Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs. 

Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption. 

"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added. 

 

Pandora’s pivot to digital 

The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand. 

“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”

Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”. 
 

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