International Logistics and Supply Chain Management

International Logistics and Supply Chain Management
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Table of Contents TOC \o "1-3" \h \z \u 1.0 Introduction PAGEREF _Toc500381142 \h 32.0 Local Sourcing PAGEREF _Toc500381143 \h 32.1 Benefits of Local Sourcing PAGEREF _Toc500381144 \h 32.2. Limitation of local purchasing PAGEREF _Toc500381145 \h 63.0 Global Perspective PAGEREF _Toc500381146 \h 73.1 Benefits of Global Purchasing PAGEREF _Toc500381147 \h 73.2 Limitations of Global Purchasing PAGEREF _Toc500381148 \h 114.0 Conclusion PAGEREF _Toc500381149 \h 12Bibliography PAGEREF _Toc500381150 \h 13
International Logistics and Supply Chain Management
1.0 Introduction
The products that are bought in a supermarket arrive there as a result of a series of numerous trading relationships. Supermarkets in the United Kingdom, both local and international, compete in an environment of global trade, and this includes products that are sourced from the international market. For instance, the Pilau rice could have been sourced from India while the Chicken Tikka from Thailand, while other spices could have arrived from other Asian countries. While these products are not produced in the UK, studies have revealed that the sourcing strategies may lead to scandals, especially when products are sourced from the international market (Winterman, 2013). This paper seeks to analyze international logistics and supply chain management in relation to a British supermarket known as Tesco. Additional element to be analyzed is the domestic and international purchasing analysis and also to offer recommendations that can enable British supermarkets to be successful in both domestic and international markets.
2.0 Local Sourcing
2.1 Benefits of Local Sourcing
Tesco PLC is a British multinational supermarket and the largest retailer across the world in terms of profits, and the 9th biggest retailer in terms of revenues. Apart from being the biggest retail chain in the UK, Tesco has numerous stores that are distributed across Europe and Asia. Since the 1990s, Tesco has managed to diversify geographically into numerous segments like retailing of electronics, clothing, furniture, books, petrol, toys, financial services, internet services, and telecoms (Butler & Kollewe, 2016). Tesco is the largest supermarket chain in the UK, with more than 32% of market share. It is a comparable to the situation in the U.S. where the market is dominated by Wal-Mart. Tesco is currently the biggest private institution that employs people in the European Union. When it comes to local purchasing, there are numerous debates about whether Tesco is beneficial or harmful to the society and shoppers. Nevertheless, studies have revealed that there are numerous benefits for this British supermarket, particularly when it comes to local purchasing.
Local sourcing is considered as an increasing trend that has surpassed the global sourcing that has been favored by numerous retailers in the past. Currently, retailers try to balance global sourcing which offers the huge volume that is needed by the retailer, and domestic sourcing that meets the ethical and environmental demands of the customers or products that are sourced closer at home. Local sourcing for grocers is becomin...