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Supply Chain and Distribution for
Fresh Food Updated March 2017
2
Fresh Food Ordering Process
Ordering Generation – First Wave, Shorter Life
Product
This process applies to Products such as convenience, fresh meat, produce, morning goods and
flowers. Stores raise orders 7 days a week and we will send orders 7 days a week to you.
3
The sales captured between the release of the order on Day 1 and around 8pm on Day 1, are also
used to refine the order calculation for stores. This means although we don’t send you a second
order, if there is variation amongst the stores it will recalculate the split of that DC order to send it to
the stores that have the best chance of selling it based on their sales and future expected sales.
Order Generation - Second Wave, Longer Life
Product
This process applies to Products such as potatoes, onions, fresh nuts, dried fruit, plants, bacon,
sausages, eggs and cake.
Stores raise orders 7 days a week and we will send orders 7 days a week to you.
Fresh Supply Chain
The team plan the flow of stock through the supply chain for fresh foods to deliver great service
levels and reduce waste by:
Ensuring that our customers can buy what they want when they want it by working with you to
ensure that the stores receive the stock they need.
Day to day order management and queries.
Working collaboratively with you regarding longer term planning and promotional forecasts
Seasonal/Event/Range Change Planning
Working with our Store Ordering Team and Buyers to optimise performance of your lines.
Working with our Internal Transformation, Supplier Partnership and Distribution teams to try and
make supply chain efficiencies.
Covering the office from 8-5 on weekdays and 8-12 on Weekends and Bank Holidays
In addition to the above, for Produce:
Work with growers and service providers to plan stock from source to shelf to deliver the freshest
product possible to our customers.
Work with you and our Primary distribution teams to deliver product directly from source to our
depots.
4
Fresh Supply Chain
This diagram shows you which other areas within Tesco the Fresh Supply Chain team work with.
Managing Stock from Source Together
The goal of the Fresh Supply Chain team is to manage all stock from source together with you.
5
Order Amendment Process
From time to time suppliers may be asked to amend the final orders that have been received from
Tesco. This can be done through the Tesco Inbound Management System (TIMS).
This system should be used to notify us of changes to your final orders; changes that have either
been approved by Tesco or shortage notifications.
If you are not currently using this system, please contact [email protected] for the
training pack and further information.
TIMS can be accessed using the link https://b2btims.tesco.co.uk/TIMS/
To receive a TIMS login in please contact: [email protected]
Store Ordering Team
Supply Chain work with our store ordering teams on a daily basis to ensure that orders are right for
stores. They are not Supplier facing teams, but work with us to support you with regards to orders.
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Fresh Service Level
Fresh Supplier Service Level calculation:
• Cap deliveries at the order quantity
• Remove supplier driven amendments to order
quantities
• Take into account late deliveries
Supplier Performance Packs:
• Consolidate all of the key supply chain KPIs in one
place
• Produced periodically and contain all the data needed
for effective and transparent conversations
• Contain supplier service level, shorts, availability,
waste (as a % of sales)
Visual Insights
• Can be used to drill down into the data, which can be
exported into Excel
• Can set up bespoke reports
• Should be used instead of Tesco Link for any Service Level information.
You can access Visual Insights at Login at:
https://www.tescolink.com/reporting/MicroStrategy/servlet/mstrWeb
Contact us for a login at: [email protected]
7
Visual Insights
Visual Insights is available free of charge and allows you to see key supply chain data and plot it
visually to make identifying trends or root causes easier.
Above is an example of the Visual Insights system with 5 key functions labelled. These are:
1. Menu bar for navigation, adding filters and saving data
2. Dropdown menus to help drilldown data
3. Filter panels to show the information you want to see
4. Tabs to show visualisations including service level, availability, daily service level and sales
& waste
5. Data panels that display the details
Standard Reports
Visual Insights has a number of pre-prepared reports that can be run every time you log in. They
show you the most requested / most used data from our systems. The standard reports available to
you are:
1. Service Level
2. Customer Availability
3. Daily Service Level
4. Sales & Waste
8
Custom Reports
You can also create custom reports in Visual Insights to enable you to template and then re-run the
data set most important to you whenever you need it. Custom reports make use of the drilldown
and filtering capabilities of the system. To create a custom report you can:
1. Apply filters to see just the data you want
2. Save the filters & data view to My Reports
3. Visit My Reports next time you use the system to run your custom report with refreshed
data
How Do I Get Access?
Login at: https://www.tescolink.com/reporting/MicroStrategy/servlet/mstrWeb
Contact us at: [email protected]
Tesco Connect
Tesco Connect is a web portal available free of charge to all UK and ROI suppliers to view forecast
orders and promotional details.
What Does Tesco Connect Show?
Forecast orders for the next 3 weeks split by product, by depot, by day
Current and upcoming promotions; information not available anywhere else for suppliers.
How Do I Get Access?
Visit www.tescoconnect.co.uk and enter your TescoLink username and password. To request
access, or for any access issues please contact [email protected]
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Tesco Connect Home Page
The home page shows key information including the total orders for the next 7 days, priority lines
and promotional activity.
Promotions on Tesco Connect
The promotions page allows you to take control of promotions by providing clear visibility of
forecasted volumes, promotional mechanics and performance.
Important Note: Tesco Connect shows future and current promotions. If a promotion is not here,
then it is not loaded.
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Where does the Tesco Connect Data come from?
Tesco Connect displays information from CR, LM and the promotions system.
CR: CR generates sales forecasts for every store, every product, and every day for
the next 21 days.
LM: We apply lead time diaries, Supplier splits and case sizes to create forecasts
by order date for every product into each depot. Grocery suppliers are able to see
truck forecasts and Fresh Suppliers case forecasts.
Promotions: Tesco Connect is able to show promotion details once they are in
central promotions. This includes the full sales forecasts and the forecasted total
sales volume over the promotional period.
Weather: The effects of weather are included in the forecasts. The temperature
used for this forecast is then shown on Tesco Connect.
Further training is available from www.tescosuppliertrainingessentials.com
Fresh Distribution Centres & OTM
All deliveries must be booked with the relevant distribution centre via Oracle Transport
Management system (OTM) and all deliveries require a booking reference in order to be accepted.
All booking references must be included in the Advanced Shipment Notification (ASN)
Planned Deliveries
All planned deliveries are booked via OTM
Unplanned Deliveries
Unplanned deliveries will only be accepted in an emergency
situation
Transport Planning
Transport Planning are available for support 24/7 and can be
reached on 0845 0755555 and choosing Option 4
Important Note: If you use a consolidator or service provider
for your deliveries, you do not require OTM access.
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Electronic Notifications
Electronic notifications are computerised messages sent to you. Examples of an electronic
notification include:
POA – Purchase Order Amendments
ASN – Advanced Shipment Notification
SSCC – Serial Shipping Container Codes
EPOD – Electronic Proof of Delivery
EGIN – Electronic Goods-In Notes
Advanced Shipment Notifications (ASNs)
An ASN is an electronic message that contains information of the contents of a delivery vehicle.
Each ASN is made up of Serial Shipping Container Codes (SSCCs)
Important Note: There should be only one ASN per delivery vehicle
Catch Weight Data
Catch weight products must have the weight embedded in the OCC, therefore allowing the ASN to
show the total weight being delivered per product. This is necessary for accurate payments.
12
Delivery Standards
When delivering product the below standards must be met:
• Vehicles should be loaded to match the tipping order
• Every pallet should have 2 identical copies of the same SSCC
• At least one SSCC should face the trailer door
• All SSCC numbers should be advised on the ASN. The distribution centre will refuse to
unload pallets not advised on the ASN, or any pallet where the SSCC cannot be scanned
• All Pallets must be securely and adequately wrapped
Delivering products in trays
Excessive space in trays means fewer products on vehicles. This adds both cost and emissions.
Important Note: Do not mix the products within trays. Each tray must contain only 1 product /
TPND
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Product Identifiers for Mixed Product Pallets
Product Identifiers are key in the pallet breakdown process. This means that the type of label you
choose needs to be correct, the OCC barcode needs to scan and most importantly, the data behind
it needs to be accurate.
Important Note: When delivery product on a mixed pallet the correct barcodes / OCCs must be
used for each different product in order for them to be successfully receipted into the depot.
You can refer back to your Tesco Language and New Lines hand out for further information on
data quality.
Delivery Standards Checklist
Each delivery must have a booking reference
The booking reference must be added to the ASN
The ASN must be sent to the correct Depot before delivery or the goods won’t be accepted
A delivery vehicle only requires one ASN
A delivery vehicle must arrive at the Depot 30 minutes either side of the booking time
Variable weight product must have weight advised in the ASN
Each pallet must have 1 SSCC x 2 labels on adjacent sides
Use product identifiers on the OCC to enable mixed pallets to be broken down correctly
Maximise tray, pallet and vehicle fill to reduce costs and emissions. Pallets and vehicles can
contain mixed products, but each tray must only contain one product / TPND
Invoice for your EPOD quantity, not the purchase order quantity
For further information you can download the Fresh Supplier Delivery Manual from TescoLink at
the following link: www.TescoLink.com
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Tesco Primary Distribution
Tesco Primary Distribution was established in 1999 to support suppliers and Distribution teams to
create a more robust supply chain.
Main areas of responsibility:
Manage haulier performance.
Negotiate ‘better than market’ rates for Distribution.
Use our knowledge and experience to support seasonal and promotional events.
Work with all areas of the business e.g. Stock Management, Commercial, Distribution and
Finance.
Be innovative, creative and agile.
Develop robust, value added and sustainable solutions.
Combines the experience of selected partner hauliers, consolidators (80+) and Tesco own
fleet to create optimal solutions.
Currently circa 1,500 suppliers utilising Primary distribution, delivering approx. 80% of
product into Tesco Distribution Centres.
How Primary bring the supply chain together
Currently, Primary delivers in excess of 100,000 pallets of Fresh Food every week. That’s around
80% of the inbound volume of Fresh Food.
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Consolidation hubs
For Fresh:
Spalding
Washington
Widnes
Lutterworth
Rugby
Tenyham
For Frozen:
Grimsby
Heywood
Portbury
For Fresh and Frozen:
Boroughbridge
Newmarket
How a consolidation hub works
This image shows the variety of ways products can get to a depot. A consolidation hub works by
collecting and sorting goods into containers and then delivering to the depots that need them.
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Primary European Operations
Primary European is an enabler for maximising direct deliveries to Tesco Depots. Direct deliveries
open opportunities for supply chain savings as well as delivering Fresh Produce Faster and Fresher.
Last year from Spain, Primary delivered circa 8,000 fresh Produce loads into the UK to both Tesco
Depots and Supplier sites. Primary works with multiple operators covering 5 Spanish regions as
well as Dutch consolidation and Italian fruit inbound to the UK.
The Primary Team use daily supply planning data to calculate pallet volumes into full loads;
maximising direct volume.
Tesco Primary is established for both single supplier full loads and multi-supplier consolidated
loads from Spain and can manages ½ pallet volume planning and two UK dock facilities to give
total flexibility for Tesco volumes.
Direct to depot deliveries
This diagram shows you a comparison between a ‘standard’ supply model and the Primary direct to
depot model. Using the consolidation method allows fresh food to arrive at a Tesco depot up to 72
hours fresher.