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Unit 29: Understanding Retailing
D1: Evaluate the distribution systems in delivering goods and services for a selected
organisation
In this task, I am going to evaluate how effective Tesco are in terms of their
distribution system and show how effective they are relative to different factors
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​For example, Tesco sources their berries worldwide, the
majority being sourced from the Huelva Region in Spain, as they want to ensure that
the berries are of a high quality and also ethical, as they want to ensure that through
the Sustainable Agriculture Initiative, that berry production is sustainable, and that
growers have legal permits for land and water, so this is the reason why they may
source their berries from this specific area, as it would tick all the boxes under price,
quality and ethics
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As well as international intermediaries, they also use british sourced goods such as
beef
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In partnership with their suppliers, Tesco are also gathering
GHG emissions data from farms so they can drive improvements in efficiency and
lower overall emissions
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Transportation
In terms of transportation, Tesco uses many different methods according to the
location where the products are manufactured
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Tesco would use different levels of goods
relating to the locations in which the products originate, so for example, when Tesco

transport their berries from Spain to the UK, they would use planes, or ships, in order
to transport a bulk amount of this produce
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However, this may change in time, as it is
reported that Tesco is actively trying to dial down their transport emissions, so they
may use more eco friendly methods of transport in order to deliver their goods
around the UK
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In terms of product price, the price of transit, as well as the
manufacturer/wholesaler would be taken into account, as they retailer will need to
cover this cost in order to remain profitable, so therefore they need to price the
clothes according to what they were sold for by the manufacturer
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For everyday Tesco products, the cost wouldn’t be impacted as much as they would
pay a fixed fee for a set amount of products, and a department at Tesco would
account for this cost and try and transfer these costs into a set amount of products,
so that a certain percentage of sales meet the cost, and the other percentage would
then account for profit
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Responsive to Consumer Needs/Changing Demand
In terms of being responsive, Tesco are able to do this as they are an accessible
brand, and through different means such as cookies and surveys, they will be able to
monitor what the customer wants
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Although they may be relatively slow in terms of restock, they will be fast in viewing
and meeting changing demand, as social media and customer service teams will be
made aware of the customer needs, so therefore plans will be put in place to where
they will be able to source the products and make them available in a matter of
weeks
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For example, Tesco sources
their beef from British farms, so they would source this produce from the countryside
and transport this produce from the farms to their warehouses, where it would be
chilled and sent to Tesco stores for the consumers and also invest heavily into
projects such as the Sustainable Agriculture Initiative to identify practical solutions to
increase efficiency and reduce emissions from the sector, as part of industry
standards

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