Tesco, the British retail giant, occupies a significant role in grocery market in the UK. It was the 56th in fortune 500 list of 2009, according to 94,300.4 million revenues (Fortune, 2009) Fresh food, such as vegetables, meat, fruit, because of it is highly amount of consumption every day plays an increasing contribution in supermarket profit. Discussing the prime reasons what causes fresh vegetables shortage on shelves is valuable because retailers only can create profit when their product are consumed by customers (Ballou, Gilbert & Mukherjee. (2000)). What’s more, it is easy to be annoyed that a customer come into a supermarket and found what he/she wants is empty. Whatever the customer chooses to buy another replaceable product (supermarket still earn profit) or to go to another shop which can meet their demand well (supermarket lost profit), his/her loyalty would be damaged. Such decrease of loyalty is a great uncountable loss for supermarket.
In groceries sector, TESCO has been witnessed its lack of supply chain efficiency and response. The possible problems what mentioned above absolutely result in obvious on-shelf unavailability of fresh vegetables. For beating these drawback, there are a vast of measures must be carried out by TSCO to integrate its supply chain so that minimize costs and qualify services.
It is necessary for TESCO to clear division of labour between departments to avoid confusing of responsibility. It must be made clearly that if the product is in store but out of stock on the shelves, which apartment and who should take responsibility on it. If possible, TESCO had better to appoint someone who might be the manager of selling department or of store department to manage delivering goods to shelves.
In addition, Tesco should reorganize the allocation of shelf. Fast selling items which are easy to be running out should allocate more space than unpopular goods. In that case, fast sellers do not need to replenish on shelves frequently. This approach is useful to save the cost of replenishing staff and improve the on-shelf ability of popular fresh foods