Tesco Goes High Tech with Retek

U.K. retailer implements sourcing software for non-food business

Minneapolis  June 5, 2001  Britain's largest retailer, Tesco, is using sourcing software from retail applications provider Retek to support its plans for a significant expansion of its non-food business by 2003.

Tesco is using Retek's Global Sourcing software to identify all globally sourced products, capture aggregated global demand, identify potential suppliers and capture bids for orders. The system can then automatically generate a purchase order.

The Global Sourcing solution also provides an assessment of duties and gives the retailer an idea of estimated and actual landed costs.

Tesco's criteria in selecting software included a system that could assess supply chain costs, service multiple countries and handle the associated currency issues and support various aspects of the non-food sourcing business.

Retek's Global Sourcing solution was installed and implemented in four months' time.

"This project was completed on time and within budget," says Christine Cross, world non-food buying director at Tesco. "The accurate calculation of landed costs enables our sourcing team to select the best deal for Tesco and our customers. The project supports the strategic business initiative to develop the non-food element of Tesco's business and we anticipate substantial savings through using Retek's solution."

Tesco plans to expand the size of the company's non-food business both in the U.K. and internationally to $4.25 billion per year by 2003.

Eighty-year-old Tesco operates about 700 stores in the United Kingdom and in Continent Europe.

Retek announced (http://www.isourceonline.com/article.asp?article_id=917) in March that U.S. grocery chain The Kroger Co. had selected Retek's suite of supply chain replenishment solutions.