Tesco integrates wine and web arms

Earlier this year the grocer completed a strategic review of the distribution network for wine delivery. That led to the ending of a shared services arrangement with its stores distribution business and the transfer of its wine distribution centre to the home shopping division.

As part of the transition, Tesco has implemented a warehouse management system from Manhattan Associates that has been integrated with Tesco.com’s existing grocery delivery applications.

The system has allowed the Tesco Wine site, which was relaunched over the summer, to provide better exclusives and improved lead times. The site has begun offering next-day delivery, as well as continuing the two-hour time slots that are standard in the rest of its online business.

Tesco.com supply chain director Neil Ashworth said: “A faster option was increasingly important but we didn’t want to lose our market position of two-hour time slots as it is of huge value to our customers.”

He said customers have also asked to be able to receive groceries and wine in the same delivery booking. Although Tesco’s systems cannot yet handle this, Ashworth said if customers book the same delivery time-slot for both orders, it is likely they will arrive on the same van.

The warehouse management system was also adopted for Tesco Direct’s launch three years ago. The direct and wine distribution centres, which are 30 minutes apart, are now being run as sister sites, with the same general manager.