Stronger links the norm for Tesco International Sourcing

by Elmo Leonard

Sri Lankan apparel suppliers are urged to back on honesty, truth, ethics and have the environment in mind, in the development of supplier-source relationship. Stronger links is the norm, for Tesco International Sourcing, headquartered in UK, its international sourcing and logistics director, Christophe Roussel, said in Colombo. In supplier-source alliance, thinking in terms of three to four years forward, was what Roussel recommended.

Tesco counts 11 years in existence, is the market leader on home turf in UK and the third largest, with Pounds Sterling 43 billion in turnover. Sri Lanka is counted as one out of 14 international sourcing bases, from which Tesco has been operating for the past four years.

Tesco, at present operates over 2700 stores with 13 markets with cumulative staff strength of 366,000 worldwide who serve over 30 million customers every week. The company has been steadily expanding its international presence over the past 11 years affirmed by the face that they are market leaders in six countries including UK. Apart from the core business of retailing, this giant retailer has also ventured into new areas of business as Tesco.com, Tesco Personal Finance and Tesco Telecoms, some of which have already rolled out internationally, Roussel said.

Conventionally reckoned for its food range, the company has considerably expanded its non-food sector offering customers value and choice through a range of store formats and ranges from value to finest.

The Tesco supply chain is facilitated by a network of 14 international sourcing offices strategically in 10 countries. This allows buying of quality products at the best prices and delivering them at the lowest cost to their customers.

Roussel counts over 15 years heading sourcing operations in three of Europe's largest supermarkets, Carrefour, Sainsbury's and now Tesco. Rounding his third year with Tesco, Roussel has been tasked to double the amount of non-food's sourced globally from Pounds Sterling one to two billion. When achieved next year, clothing will account for half of the sum, Roussel said.

Roussel's job is to find the right produce at the right cost and bring it to the store at the right time. It takes 13 days to ship from Colombo to Southampton port in UK; three weeks from China and India and answering questions, its the shipping lines which had made that possible. Half of the year, Rousell travels and the other half, he spends in Hong Kong, the hub of sourcing, he said.

Roussel's strategy is based around eight global sourcing hubs, Bangladesh, China and Hong Kong, India, Italy, Sri Lanka, Thailand, Turkey and Vietnam.

In Sri Lanka there are 800 apparel suppliers, but Tesco works with 30. Tesco gives the design and lets the manufacturer come out with the price. Tesco invests with commitment, Roussel said.

Tesco gives Bangladesh, India, Sri Lanka, China and Turkey 20 percent, each of some types of apparel for manufacture. Too much to China proved futile, when quotas were reintroduced.

Each hub has a dedicated clothing team which is then broken into categories as menswear, womenswear, kidswear, babywear, footwear and essentials.

Sri Lanka has the ability to make the whole garment, while some other sources, one being Vietnam, cannot think in complete terms. Sri Lanka has the ability of going up-market and could survive the non-quota blitz, simply because of astuteness.

Calm and conflict within a nation was not a binding criteria, when choosing a supply source, Roussel said in answer to queries. The suppliers are based in the soil and culture they understand and have the ability to strive and deliver the goods.

The globe is a fiercely competitive marketing arena. Tesco believes that the battle to win customers in the 21st Century is increasingly going to be fought on two grounds. First, as always on value, choice and convenience.

Second, on being good neighbours, being active in communities, seizing the environment challenges and on behaving responsibly, fairly and honestly in all business dealings and actions. In business we must always win, win with shareholders, partners, staff and employees and most importantly, win with your customers, Roussel said.

[email protected]