IBM Mainframe: Tesco brings multichannel retailing to today’s digital consumer


I like to shop at Tesco,
because the produce is always fresh. “Every little helps” is
about making those incremental improvements to people’s life. We have a club card so
we collect our points. It’s great being able
to shop online and then we can go collect it when we have more time. Tesco is a supermarket group.
We operate in 12 countries. We move something like, ya
know, 50-100 million items from farms and factories all around the world And we do that in a just in
time basis. Once upon a time, ya know,
going down to the physical shop was a customer’s only option. In this kind of multi-channel
world our customers have a multiplicity of options and how they choose to engage with
us. Now the smart phone is part
and parcel of everybody’s shopping mission, its part and parcel of the way we talk to
customers today. Our aspiration is to make sure
that the experience for our customers and colleagues is seamless wherever you are. Technology
is the key part, which is making it possible. It also allows you to target
and tailor marketing towards an individual. I can offer you as a person
offers that I won’t offer to your next-door neighbor because they have a different shopping
habit to you. We have absolutely stacks
of data. We look at all the customer data and all the customer insight we have, to look
at how we might want to develop digital products or innovations for our customers in a way
that will appeal to them. On the website, we have got
a way of being able to recognize what customers have previously bought to fill their basket
so that they can quickly get products and check out and then they can come to the store
to a dedicated point where they can pick up their click and collect shopping. We’ve got over 3,000 stores
and we’ve got 40 depots. Therefore it’s really important to us that our supply chain
operates at pace, as well as at scale. We have technology now throughout
the store to help both our customers and our colleagues, whether it’s to do with replenishing
the shelves, serving all our customers at the customer service desk or picking up their
parcels. Customer engagement is changing
a lot. We are heavily relying on IBM and the use of the mainframe within Tesco. Every time the customer goes
to pay for us on the Internet, they go through the mainframe. Every time they redeem a voucher
for their loyalty card in the store, they go through the mainframe. It has absolutely changed everything
about our business.

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