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INTRODUCTION A supply chain is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer. All organizations have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer. Managing the chain of events in this process is what is known as supply chain management. Effective management must take into account coordinating all the different pieces of this chain as quickly as possible without losing any of the quality or customer satisfaction, while still keeping costs down. In addition, key to the success of a supply chain is the speed in which these activities can be accomplished and the realization that customer needs and customer satisfaction are the very reasons for the network. Reduced inventories, lower operating costs, product availability and customer satisfaction are all benefits which grow out of effective supply chain management. 2. THEORETICAL FRAMEW ORK OF SUPPLY CHAIN MANAGEMENT

2.1 SUPPLY CHAIN MANAGEMENT AT TESCO PLC A management network of interrelated companies engaged in the terms of items and of service needed by the end customers in a supply chain is called Supply chain management (SCM). All activity and storage space of raw components, work-inprocedure inventory, and completed products from derivation point to consumption point is covered by Supply chain management. As companies endeavor to concentrate on primary expertise and becoming more versatile, they decrease their possession of raw components resources and channels of

allocation. These features will be contracted to other organizations that are capable of doing the actions better or more expenditure successfully. The consequence is to augment the number of companies engaged in fulfilling client need, while decreasing management power of regular functions of logistics. Less management and more supply chain associates directed to the development of supply chain management ideas. The objective of supply chain management is to develop believe in and cooperation among supply chain associates, therefore enhancing inventory exposure and the speed of transfer of inventory in necessary. 2.2 CRITICAL ISSUES OF SUPPLY CHAIN MANAGEMENT HIGH INVENTORY LEVEL It seems that about 1880 there was a transformation in production practice from corporations with comparatively standardized items lines to incorporate corporations horizontally with unmatched variety in procedures and items. Those corporations (particularly in metalworking) tried to succeed through economies of scope - the benefits of mutually generating two or more items in one opportunity. Having large level of inventory usually indicates your corporation is having difficulties for turning over the inventories and starts selling. When you have a large inventory level, you experience major costs and store management specifications that have drawbacks comparative to corporations that have superior inventory turnover and need fewer source usage to handle inventory.