1-What benefits does Tesco’s information exchange offer to the retailer and its suppliers?
Tesco has started of using TIE(Tesco Information Exchange)since 1997.It it massive help to control and influence in combine Tesco retailing knowledge with the product knowledge of suppliers. In addition TIE aim the supplier to have enough time to react about orders.(Chaffey, D (2002), E business and e commerce management, Financial time)
2-What differences have the use of TIE added over the original EDI system?
Electronic Data Interchange(EDI) is a way of life for Tesco and about 200 of their suppliers, enabling rapid and up-to-the-minute stock data to be transmitted across their supply chain. It started operating from 1980s and sent messages to 350 suppliers about details of actual store demand and weekly sales forecasts.As a result, Tesco have increased their stock turn to 36 times per annum, reduced lead times to less than three days. management by suppliers.(Croom, S. (1999) The Supply Chain Revolution, NEXUS, Autumn)But it needed to improve because Tesco did not know the correct value of sales or they did not receive any feedback . The TIE helps to good understanding of two way collaboration in supply chain. .(Chaffey, D (2002), E business and e commerce management, Financial time)
There has to be two way communication for any system including EDI or TIE to work properly. Besides, the processes managing that information have to change, otherwise technology might not deliver everything that it can.
ReplyDeleteAnd of course you will also need to make sure that the possibilities of EDI or TIE support, if not enhance, businesses own strategies.
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