How Tesco Introduced AI Insights into its Supply Chain
In the intricate world of retail, the supply chain serves as the backbone that ensures that products move seamlessly from production to the shelves.
For a retail giant like Tesco, which operates over 4,250 stores across the UK and serves millions of customers weekly, this system is nothing short of colossal. Every shipment, whether arriving by rail or road, must not only be timely but also accurate to meet consumer demand.
Yet, the challenges facing global supply chains have been mounting. Rising consumer expectations for instant availability, coupled with unpredictable disruptions such as transport delays and labour shortages, are placing unprecedented pressure on retailers.
Tesco, understanding this imperative, has turned to technology for answers, collaborating with Roambee to transform its logistics approach with AI.
Tesco and Roambee reinventing supply chains
Tesco’s recent announcement highlights the significant strides it has made in supply chain innovation. Partnering with Roambee, a provider of supply chain visibility and intelligence solutions, the supermarket has enhanced operations across 3,000 locations.
Roambee’s platform harnesses AI to provide real-time insights into the movement of over 23,000 containers, covering more than 6.2 million miles annually.
Previously, Tesco relied on third-party data to track container movements, a method that often resulted in inefficiencies and inaccuracies. The adoption of Roambee’s platform has changed this dynamic entirely.
The supermarket now enjoys real-time access to container locations, enabling its supply chain leaders to verify deliveries, address potential issues promptly, and maintain inventory accuracy.
“Roambee's platform has allowed us to track and manage our container movements across rail and road much more effectively,” says Ben Smith, Head of Primary, Global and Rail Logistics at Tesco. “We can trace the location of our shipments at any time, reducing delivery errors and ensuring our stores are stocked efficiently.”
This transformation has led to measurable benefits: reduced dwell times, heightened stock accuracy, and significantly improved operational efficiency across Tesco’s network.
Setting a New Standard in Supply Chain Security
In addition to improving logistics efficiency, Tesco has also prioritised security.
Solar-powered sensors installed on its containers monitor shipments in real-time, tracking route deviations, delays, and unplanned stops. This system ensures both the safety of goods and adherence to schedules, further streamlining operations.
“By achieving this remarkable level of visibility in container movements and improving stock accuracy on cost-effective but less predictable modes like rail, Tesco has set a new standard for supply chain efficiency," says Sanjay Sharma, CEO of Roambee.
Roambee’s technology also integrates seamlessly with Tesco’s scheduling systems, monitoring arrival and departure times, dwell periods, and estimated times of arrival. By eliminating the need for multiple touchpoints to track shipments, Tesco has significantly reduced inefficiencies while maintaining timely deliveries to its stores.
Tesco’s collaboration with Roambee exemplifies how technology can address the challenges of modern supply chains. In a world where disruptions are inevitable, real-time visibility not only mitigates risks but also unlocks new possibilities for operational excellence.
As Tesco continues to innovate, it is setting a benchmark for other retailers navigating similar complexities.
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