The role of retailers as channel captains in retail supply chain change: the example of Tesco

Abstract

The large scale retailer with a strong retail brand and sufficient critical mass in the market place may reach a pivotal point in its development when the directors can address the question: “Does the company want to get directly involved in the functions of centralised buying, logistics and supply chain management?” This thesis takes one such company and expands in some detail about its growth towards excellence in the techniques of retail supply chain change. The evolution and critical decision moments provide an in depth case study for others to use as a benchmark.

Its purpose is to examine the role of the retailer as a channel captain; a concept from an earlier marketing era, whose origins it reveals. It takes that learning together with contemporary supply chain thinking and examines real retail supply chain events in Tesco. The results of matching the new and old academic theory with practitioner events confirm that the channel captain is the retailer. It demonstrates that retailers can make the transition into that leadership position and apply supply chain management skills to competitive advantage. This can become a strategic tool both at national and international levels. The principles of this thesis could be used or applied in research in three areas: in depth with Tesco; in breadth, exporting expertise to other retailers; globally with retailers extending the operations internationally and suppliers seeking to trade with European retailers.