Tesco to expand overseas sourcing

21 September 2005
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22 September 2005 | Rebecca Ellinor

Tesco is expanding its sourcing of non-food supplies from abroad, with plans to double its spend in this area to £2 billion within two years.

The UK retailer is to set up more sourcing offices around the world as part of the expansion. It already has 11 of these, including bases in Hong Kong, Turkey and Bangladesh, and sells in 13 countries.

As another part of the expansion, Tesco has signed a deal with software provider Eqos for the technology to manage its supply chain for non-food items. It has bought tools to manage global sourcing, monitor the quality of supply, and alert buyers to potential delays or problems in the delivery of finished products.

The system will replace manual processes to provide buyers and suppliers with a single access point, eliminating duplication and making communication quicker and easier. The project will start with the men's Cherokee clothing and Home Shop items. In time it will cover all non-food items.

In a statement, John Hoerner, Tesco's chief executive of clothing, said: "It will support better cost negotiations and provide more flexibility."

SMsep2005

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