TESCO

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). 

3-Discuss reasons why only two of Tesco's suppliers have fundamentally altered the way they work as a result of TIE. 

         Many suppliers prefer sticking to their traditional ways of retailing and refuse change. Also, If the exclusivity of the products is not owned by Tesco then using TIE will make it difficult for the suppliers to deal with other retailers, which have not adopted TIE. In some cases, TIE does not require great changes to the retailing system.