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Supply Chain and Distribution for Fresh Food Updated March 2017

Supply Chain and Distribution for Fresh Food...Working with our Store Ordering Team and Buyers to optimise performance of your lines. Working with our Internal Transformation, Supplier

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Page 1: Supply Chain and Distribution for Fresh Food...Working with our Store Ordering Team and Buyers to optimise performance of your lines. Working with our Internal Transformation, Supplier

Supply Chain and Distribution for

Fresh Food Updated March 2017

Page 2: Supply Chain and Distribution for Fresh Food...Working with our Store Ordering Team and Buyers to optimise performance of your lines. Working with our Internal Transformation, Supplier

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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.

Page 3: Supply Chain and Distribution for Fresh Food...Working with our Store Ordering Team and Buyers to optimise performance of your lines. Working with our Internal Transformation, Supplier

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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.

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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.

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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]

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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

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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.

Page 10: Supply Chain and Distribution for Fresh Food...Working with our Store Ordering Team and Buyers to optimise performance of your lines. Working with our Internal Transformation, Supplier

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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.

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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.