Delivery Strategy In Tesco

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5.2.3 delivery strategy

Delivery strategy means the transporting of products form warehouses or stores to end customers. Before the grocery and supermarket chains, home delivery was common in the UK that was provided by small grocers, for example, sending milk to customers’ doorway. While later this service nearly disappeared with rising of supermarket chains, customers prefer the large scale grocers when compared with small shops (Genunes 2004, p.239). Now the online supermarkets focus it again and it becomes growing importance on the online order fulfillment process. Form the aspect of products, the speed of delivery can influence products’ quality and freshness in the supermarket and grocery industry. On the other hand, nowadays customers
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As mentioned above, TESCO applies hybrid e-fulfillment strategy: both physical stores and warehouses undertake the delivery function. For Tesco Grocery.com, customers’ orders will be allocated to the nearest stores and then the orders will be delivered by the specific vans. According to The Statistics Portal (2016), the number of Tesco store has accessed 3400 in 2015 and a large part of them are responsible for delivery. The orders of Tesco Direct.com are all handled by warehouses, Tesco has developed many distribution centers around the UK, it can provide delivery services to most locations in England, Wales and Scotland. Besides, the total sales range of online Tesco nowadays have more than 90% of the UK. With wider distribution stores and warehouses network, Tesco can reduce the delivery costs and improve the delivery time accuracy at the same time (Genunes 2004, …show more content…
For instance, the fresh-keeping delivery. The Fresh foods are the main products of British grocers and supermarkets, according to the authors’ questionnaires, nearly 27.6% of interviewees expressed that they like buying fresh vegetables and fruits form online groceries, and 23.3% of total said that the freshness and food quality will influence their selection of supermarket. According to Zhang et al (2014), food quality becomes one of the most concerns of today’s customers as it related to healthy directly. OCADO devote itself to keep products’ quality during the delivery. The company puts emphasis on building seamlessly foods cold chain, applying specific temperature controlling Benz vans to delivery orders, the vans are all equipped with different temperature-controlling carriage. What is more, with its own vans, OCADO’s on time or early delivery rate over 95% and the accuracy of order fulfillment can reach 99%(OCADO, 2015). Before one or two hours of planned delivery time, OCADO will send a text to remind customers when the vans go out for delivery though customers have already booked a specific

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