Tesco Lotus - a Hypermarket Chain in Thailand

Tesco Lotus

    Tesco Lotus is a hypermarket chain in Thailand operated by Ek-Chai Distribution System Co., Ltd. Tesco Lotus started from the Lotus Supercenter chain started in 1994 by the Charoen Pokphand (CP) Group with the first store opening in Seacon Square. In 1998, the British supermarket chain Tesco took a stake to create "Tesco Lotus". CP Group sold most of its shares in Tesco Lotus in 2003. CP operates a chain of "Lotus Supercenters" in China which have a similar logo to the old Tesco Lotus logo, although the companies are not connected.

    Tesco Lotus stores currently operate in five formats: Extra, Hypermarket, Department Store, Talad, and Express. Extra, Hypermarket, and Department store formats have an extensive fresh food, prepared foods, and grocery offerings as well as a non-food offerings including electrical appliances, apparel, toys, stationery, and household goods. Talad is a "supermarket format" selling mainly groceries. Express is a convenience "mini-supermarket" format. Many of the products on the shelf are Tesco house brand products.

    The bigger stores are often set in malls and have food courts and many other shops and stalls available as well as large car parks. Temperatures are kept at a relatively cool 26C. Tesco Lotus also offers a range of retail and financial services including bill payment, personal loans (Tesco Premier), a Tesco Visa credit card, and as Tesco General Insurance Broker, a range of insurance products. Most recently, in April 2013, Tesco Lotus introduced online shopping. Tesco Lotus operates 1,400 stores of which 1,100 are Express stores.

Tesco Lotus with supply chain in the distribution process (Distribution)

          TESCO is a well-organized retailing business, and Tesco Lotus's Supply Chain & Distribution Center has been recognized as an example of supply chain management in the distribution process. (Distribution) used in the retail business.

If you start in the supply chain, you will find that only in the order on the computer screen to manage the stock and goods. But in the actual operation. Must look in the back of the home distribution center. Or a warehouse that supports these processes to move systematically.

          Lotus's first branch was born in 1994 at Seacon Square shopping center, CP has a 50% partnership. The first problem that CP group had to face was the control of goods in the mall. The main reason is that during the year 1994-1995, Lotus was the same as the retailer. There are 2 branches with the partners to send the store, but when the product will expand, it will be a problem because the list is increased to 2,000 items and there. Up to 2,000 partners

      Therefore, each Store must have a receipt - send up to 22 million shipments per shipment per
year As a result, Lotus decided to build a warehouse and distribution center at Wang Noi. This will reduce everything Cost can be made in advance. Suppliers only deliver goods at a single distribution center.

     Backhauling strategy is to pick up a product straight from the warehouse or from a partner's factory. On the route from the branches back to Wangnoi Distribution Center as well. This saves on transportation costs and saves both partners and companies time. An example of transportation administration. Because cost savings. It's about finding a way to keep the car out of the way. Over the course of five years, Tesco has dramatically reduced the cost of running a truck to a branch, reducing its mileage to 4.8 million miles.

In addition, Tesco Lotus uses a two-way trade door strategy. It facilitates the import of goods to Thailand. And exports of goods made in Thailand to the United Kingdom. This is a two-way trade gateway. In addition to helping Thai customers benefit from the system of sourcing and buying goods at cheap prices. It is also a channel for delivery of goods made in Thailand to the Tesco network in the United Kingdom.

          The Tesco Lotus distribution center is currently located in Wang Noi, Ayutthaya. It is the largest distribution center in Southeast Asia. Thailand is one of only six countries in the TESCO distribution network that is expected to deliver 15 per cent of its products to global networks. With a value of 1,300 million baht, it can handle over 500,000 units of packaging per day. These items will be transported to various branches efficiently and in a safe environment.

         The center also assists Tesco Lotus partners in packaging, pricing, pricing and pricing and shipping to international standards as well. This is to upgrade the ability of Thai companies to operate on foreign demand. To expand its export capacity through Tesco Lotus's two-door trading gateway strategy, 500 employees are continually evolving. The latest construction of the building and installation of a complete conveyor (Cross Dock) was completed in January 2003 to speed up the delivery of goods. And reduce the cost of the backup. By Tesco Lotus's business team, Tesco Lotus is a developer of information technology. The area of ​​about 70,000 square meters is divided into two main areas.