Tesco Group Supply & Demands!

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Presentation transcript:

Tesco Group Supply & Demands! Johnathan Sutton Produce Group Sourcing Manager Tesco Plc. Asia & Oceania.

Tesco Group Business 3rd Largest grocery retailer in the World. 2010 group sales in excess of £62 billion 14 countries Over 4500 stores Worldwide Over 150,000 registered farm producers Opened 1st ZERO CARBON store in 2009 in UK. Community focused business

Tesco Group Business Multi Format – Multi Brand business Substantial Own Label business Rewarding customer loyalty Clubcard now active in many Countries. 18% more shoppers are redeeming vouchers Committed to Ethical Trading Committed to working closely with growers.

Demanding retailer or consumer? On shelf availability. Competitive prices. Broad choice of ranges. Innovation & New product launches. On pack health information. Long shelf life of fresh goods. High quality goods – no defects.

Demanding retailer or consumer? Pesticide safe products. Organics & Fairtrade products. Fairly treated workers & staff. Managed programs for worker welfare. Hygienic production facilities expected. Reduce “food miles” – Local sourced. Consideration for the environment. Clear & concise communications.

Challenges for suppliers. Audits International Standards – Farms / Packhouse / People Traceability End to End management Innovation Packaging / Product / Process Cold Chain Conformance

Challenges for suppliers.

Challenges for suppliers.

Standards required. Tesco also conduct a “Food Manufacturing Audit” at EVERY site that produces.

Ethical Trading? What does it mean? How is it managed? What’s the reason to do this? Is it applied equally across all Countries?

CONVICTED & FINED

Level Paying Fields? Australia = $570 / week NZ = $12.75 per hour UK = £5.75 per hour China = approx 1000 Yuan per month Thailand = 150 – 210 THB per day India = 100 – 120 Rupees per day

Final Comments Customers expect MORE. People / Product / Process Visibility of the supply chain. Locally or Globally the standards will be the same!

Johnathan Sutton Produce Group Sourcing Manager Tesco Plc Johnathan Sutton Produce Group Sourcing Manager Tesco Plc. Asia & Oceania. johnathan.sutton@th.tesco.com