Tesco’s operational problems

In this writing I will refer to the case study written by J. Bell and J Davidson with reference to Tesco’s operational problems that consist of; mispicks: picking locations and scan guns. I will try to analyse these problems and suggest alternative methods to be used to resolve these problems. Whilst seeking solutions to the three operational problems which “are routine in nature and are very well understood in the organization.

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During the research further information from academic books, journals, articles and websites will be used to help support the solutions I believe could be useful in resolving the problems. Relating to the case study of warehouse management systems at Tesco’s there are three operational problems outlined. This problem occurs due to the error made by the employee responsible of picking or alternatively the data records of the stock does not correspond with the merchandise in the picking location.

When the mispick has occurred either through the picker or the data records this could cause a cumulative error leading from one problem to the other. Due to the inaccuracy of the stocks in warehouse, the account details in the order processing department and the sales forecast figures will also be inaccurate. Thus enabling further errors to be created one after the other before having to identify and resolve the first problem, therefore causing each error to overlap and be costly to the company.

“Our aim is to create simpler, more ; cost effective-operations, without compromising service or quality. “2In order to prevent this situation with mispicks from occurring it would be necessary to obtain the data records of the stock in the warehouse that is” used for the storage of inventories during all phases of the logistics process”3 and information of the rota for the pickers involved would also be essential to identify the person responsible of the mispicking.

To identify the reason of mispicks it would be necessary to involve the department with forecast figures, inventory and the employees responsible for the pickings. Once the data has been collated with the correct staff and department involved, the next step is to identify any mispicks which have occurred and to put them into the correct pack or to alter the data records to match the stock in the warehouse. In order to complete this task information of the stock data would need to be cross referenced with the merchandise in the warehouse.

After altering the details it would be necessary to analyse the cause of the mispick as to whether it is an error made by the employee or the system undeveloped physical and data networks can stop many aspiring companies in their tracks”4. If the error has occurred through the system it would be advisable to monitor the database to see if it is a repeating process. When it appears to be a repeating process then maybe alteration with new allocation or the system can be set up to avoid further difficulties.

However when the mispick occurs due to an error of the staff then I would suggest to monitor the amount of errors made by the picker. If it is a continuing situation then it would be necessary to give further training or send the picker on a course which is defined by K Lysons as “being able to perform whole work loads: perform – not just know about – whole work roles, rather than just specific skills and tasks.

“After further training if errors still occur by the picker a meeting should take place to see whether the training was useful and the picker has understood the procedure. If however the picker is fully aware of the procedure it would be advisable to discuss with the picker the causing of the errors. After a period of training and discussion with the picker and no results have been obtained then perhaps the job is not suitable for the picker, therefore the solution would be to offer an alternative position which they feel comfortable with and replace the picker with another.

Although in Tesco mispicking is only at 0. 03% the extent to how it relates with other problems is high as it leads to inaccurate account figures of stock and sales forecast therefore trigger one problem after the other creating customer inefficiency “Businesses that have effective logistics and supply chain management processes in place benefit from improved quality, reduced waste, lower costs, better customer service and more profit. “