In a recent lecture delivered to us by Richard Holme, we were introduced to the idea of logistics and demand planning. This is something that I have a little knowledge on by being a colleague of Tesco but it also opened my eyes to how much time and effort that is needed in order to stay afloat in the world of retail.
I work on the Beers, Wines and Spirits department in my local Tesco supermarket and I have recently started working on the back door which involved taking in the delivery lorries full of produce and goods. I have experienced the sheer volume of products that need to be ordered and delivered over the Christmas period in order for Tesco’s to provide the perfect Christmas that so many of it’s customers are wanting. Many things need to be taken into consideration when thinking of the journey food and products go on before they reach the shelves for the customer. Thought needs to go in to the shape and weight of the product, how far it has to travel before it gets to the depot, the sell by dates and out of code dates, what temperature the products needs to be kept at and just how much the shop is needing and lastly, the distance of the depot to store!!! This just highlights the amount of mathematical thinking that occurs when thinking about the logistics of food and product journeys!
Demand planning is where most of these thoughts turn into action! I have gained a new respect for all my stock control colleagues as they are the ones in charge of monitoring stock levels and making sure more products are due to come into store of the busy periods such as Christmas. It can be a very tough job trying to work out just how many turkeys are needed to feed the families of the local area! Factors such as damages, waste and demand stock all play a part in affecting the outcome of the quantity of products being delivered. The amount of mathematically concepts that occur when determining what products to bring in and how many is huge. Estimation and probability, money and budgeting all come into consideration.
After having a go at being Tesco for a day, it is easy to state that there is a huge amount of mathematics that is involved and the people that work within the field of logistics and demand planning need a sound understanding of fundamental mathematics in order to be successful in the world of retail and sales.