Tesco simplifies in-store ordering

Tesco is installing an internal order management system across its 780 shops for purchasing in-store consumables.

The supermarket giant will use software from specialist spend-management firm Marrakech to replace the manual and time-consuming processes used for ordering non-sale items such as carrier bags, shopping trolleys and shelf-edge labels.

Rob Illingworth, Tesco's programme manager, told Computing the company wanted to simplify in-store ordering.

'There were two key benefits we wanted: to make it easier to find products, where they are all in one place; and to generate better management information about our supplier relations and products.'

Tesco has decided to roll out the order management software to all its stores following successful trials in 50 shops.

Illingworth says re-engineering the management, ordering and distribution software for store consumables has also led to the creation of Tesco¡s first centrally consolidated electronic catalogue of goods, with supplier details and product pictures.

'We didn¡t have images in our product catalogue so it was hard for staff to know exactly what they were ordering,' he said.

The supermarket's existing procedures involve ordering items such as carrier bags in vast quantities and storing them in central warehouses, before delivery to individual stores.

The Marrakech system lets staff manage the delivery of supplies direct to retail outlets as well as from central warehouses.

'We are looking for productivity benefits, where it's simpler for stores and staff to use,' said Illingworth. The major benefits will be releasing staff to concentrate on other jobs.

'Better buying processes will generate a better level of understanding of our ordering, to help our productivity,' he said.

The new systems will be rolled out over the coming weeks. Once installation is complete, Illingworth says that Tesco will look at extending the system to other areas of the business, particularly as the software offers a pay-as-you-go service model that could be used to reduce the retailer's costs further.