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Evaluate the efficiency of Tesco's stock control methods.
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- Words:
- 2840
- Submitted:
- Tue Feb 03 2004
... Evaluate the efficiency of Tesco's stock control methods What is the need for efficient stock control? In April 2001, Tesco announced their £1 billion profits breakthrough. Analysts said their success was due to investment in IT in stock controls, (apx 1)1. For this barcodes are crucial, they link IT and physical distribution. Stocks are essential to every business. Stocks carry an opportunity cost, which include warehouse space, handling, deterioration, insurance and administration, as well as the cost of finance to pay for all of these. The value of having stocks of inputs must be set against the cost. Stocks ensure that the customer has a visible choice and immediate delivery. Tesco must strike a balance between the achievement of customer satisfaction and the cost of holding stocks. Tesco works in an oligopoly and so competition is always high. They must always think of new and improved ideas to give themselves the competitive
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