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Unit 29 - Understanding Retailing D1
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D1 evaluate the distribution systems in delivering goods and services for a selected organisation
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Unit 29: Understanding RetailingD1: Evaluate the distribution systems in delivering goods and services for a
selected organization.
Introduction
This report will evaluate the distribution process of a selected business being
Tesco. This report will cover how the distribution systems assist in ensuring that
the business sees effective retailing and recommendations on how it can be
improved will be suggested and justified.
About Tesco
Tesco is a multinational retailer from the United Kingdom. It was started by in
1919 by Jack Cohen, who opened the first Tesco grocery store in 1931 near
London, England. His business grew very quickly and there were 100 Tesco
stores by 1939. It has opened stores in other
countries in Europe and Asia. It is the third-
largest retailer in the world measured by gross
revenues and the ninth-largest retailer in the
world measured by revenues.
Availability of Products (Time, Place, Quantity)
Being able to supply the products and services that your customers are
demanding is very important in ensuring that sales are made. There are more
factors that should be considered when supplying a product and it is ensuring
that the right product is in the right place, at the right time and a large quantity
is available. An organization as large as Tesco can analyze the market and their
customers and still end up on the wrong path of being able to provide the
products that their customers are demanding. Tesco’s provides a wide variety of
different product at their stores, therefore they are able to provide for all
customers. If not, substitutes are always available or it may be available at
another Tesco store in the area. However, items in store change quickly due to
the change in seasons and what is likely to be popular, although some items
remain because they are usually bought by customers regardless of the season.
Distribution Channels used by Tesco
Tesco Manufactures its own products but they also sell products manufactured
by other companies and brands. Two of the distribution channels apply to this
organization, which are;
1. Manufacturer (Producer) Consumer (Customers)
Example: Tesco produces their own pastas, poultry, seafood, etc. that they sell in
their store to their customers.
2. Manufacturer (Producer) Retailer Consumer (Customer)
Example: Tesco sells items from John West, Burtons Biscuit Company, Coca Cola,
etc. in their store to their customers.
Retail Control of the Supply Chain
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