The grocer has completed its roll-out of the Eqos sourcing system to its UK hardlines business and is working on extending the system to its apparel categories and other countries in which it operates, as it works to standardise its operating model across the business.
The system provides Tesco with full business process support for private-label and branded merchandise from product design to supplier negotiations and contracts.
It also provides critical path management and a single data repository. The system will create standardised processes across all of Tesco’s sourcing hubs, with 11 international offices in 14 countries.
Tesco commercial IT director Harm van Weezel said: “Eqos is facilitating the on-boarding of new suppliers and improving collaboration among our sourcing offices and their suppliers. As a result, we have implemented better business practices and reduced the administrative load of managing our supplier community.
“In the end, we are better able to respond to customers and to the evolving demands of our rapidly growing network of retail operations and stores,” he said.
In addition, Tesco has rolled out the Eqos auditing and compliance module to ensure the maintenance of product safety and ethical sourcing practices.
Tesco international sourcing operations director Colin Hill said: “[The module] enables us to schedule factory audits, streamline our reporting processes and manage our corrective action programme.
“By using these systems, we aim to reduce the costs associated with poor quality goods and should, in the future, be able to better meet the social responsibility goals that are such an important component of Tesco’s overall corporate mission.”