Partners with Tesco for 23 years

Further Reading

Background

By 2004, Tesco.com was in its fifth year, having leveraged its already successful online grocery brand by successfully expanding the product offering into several non-food sectors. The brand was by now the world's largest online grocery retailer and was managing hundreds of thousands of different non-food products, sourced from a large supplier base. Competition in the market had become increasingly aggressive during this period with threats to the Tesco.com business emerging on a global scale.

 

Business Challenge

To compete, Tesco.com needed to strengthen the business further. As Jon Higgins, IT Director at Tesco.com explained, "Our strategy is to provide exceptional value and choice for our customers with an unrivalled choice of products. To deliver on this promise, we manage hundreds of thousands of products, sourced from a large number of different suppliers. When one of our suppliers or partners fails to deliver essential product data that we can use quickly and easily, it results in Tesco.com failing to provide that choice for our customers. It was very simple; we needed a solution that would help us to work collaboratively both internally and externally, reducing our reliance on our weakest links and to provide consistent and accurate product information for our customers to choose from."

 

Solution - Sonetto® Product Information Management

According to Higgins, having worked with the IVIS Group for almost ten years, the company had the right track record, level of trust and credentials to move into this next phase with Tesco.com. Higgins was confident that IVIS Group's Sonetto® Product Information Management (PIM) would provide the business requirements Tesco.com was looking for. They knew from the start that they would have great flexibility in the way they managed product information, as there was no prescriptive or restrictive definition to follow. IVIS Group also had a solid understanding of the Tesco.com business, having already worked as a virtual part of the Tesco.com team since its inception.

 

Tesco.com International

  • Launch of 20k lines of food and non-food categories for each market across one common platform – easy to maintain and upgrade
  • Using Sonetto®, Tesco’s merchandising team are able to manage product content and promotions for all country sites from a single location
  • Handles real-time basket calculations of price & promotions
  • Manages over 2 million SKUs.
  • Live in Ireland, Czech, Poland, Slovakia, Thailand, Malaysia, Hungary & China

 

Omni-channel expert IVIS Group was recognised for its contribution to Tesco’s first central-European online shopping launch in the Czech Republic.
Tesco.com uses IVIS Group’s Sonetto technology, which forms a key component of Tesco.com’s e-commerce platform, and the Czech Republic launch has allowed the grocer to create a successful framework for future international rollouts.

 

Tesco Click & Collect – UK

With a successful home delivery service, Tesco looked to add Click & Collect for grocery products to their stores. With some stores already offering Click &  Collect for GM products, optimising the process for grocery products while maintaining maximum convenience for the customer was key

Deliverables:

  • Process – optimisation of click & collect process taking into account capacity for car park storage area, staff numbers, peak periods and slots
  • Product – control of which products are available for click&collect by store and ensuring rich information is available at the point of purchase
  • Pricing – store based guided pricing for an average 80 items in a basket
  • Promotions – driving customer behaviour with targeted discounts on usual purchases and promoting click & collect option at store for non-peak periods

 

Tesco.com Whitelabel  - UK

  • Business objective to expand to non-food
    • Time to market critical – had to be live Oct 99
    • No limit to target markets
    • Must not disrupt food business
    • Minimum investment
  • Solution
    • Linking Tesco with Content Providers & Logistics partners over the Internet
    • Customers only aware of Tesco
    • Created an EDI framework to link partners
    • Used White label model
  • Results
    • Nine new markets under 2years
    • No impact on existing business
    • Enormous flexibility

 

Tesco Direct – UK

Using innovation to capture business knowledge and apply automatically using enterprise business rules Business users are able to:

  • Cleanse and standardise product data
  • Enrich product with ‘emotional’ lifestyle data
  • Channel management – product availability
  • Map product information to multiple channels and business models

 

Tesco One-Till Project

While Tesco.com had automated the checkout system for the home shopping orders, parts of the checkout process were still executed on a manual basis. Handling refunds was one area where significant time and cost savings could be made by improving the process.

While delivering to customers, drivers had to make a note of the products to be returned and hand this to the Home Shopping manager at the branch who, using a standard till, would manually process the refund and post the receipt to the customer.

Deliverables:

  • Process for managing substitutions and returns/refunds at door
  • Implementation and integration of Handheld scanner devices for drivers
  • Integration with back-end systems for payment processing – refunds/returns
  • Automated email of revised receipt to customer

The new system saved Tesco.com £1.25M in the first year by a combination of reduced returns, improved fulfilment and increased efficiency in the Home Shopping Team.

 

Tesco Clubcard Lifestyle Rewards – UK

  • Implemented SMART coupons for Grocery – allowing Clubcard statement coupons to be used online as well as in-store
  • Re-design and re-launch of Clubcard rewards website
  • Added Map functionality to geographically find deals nearest to you
  • Integrated Sonetto PIM and PPM into the site to support new types of reward product and increase Clubcard reward promotions; making them electronic and not paper based
  • Delivered new types of Clubcard exchange rewards:
  • Time limited and stock limited rewards
  • Customer exclusive, and limited usage rewards.
  • New partner rewards (e.g. transport for London)

 

Tesco Price Promise – UK

As the competitive landscape for grocery retail increased, Tesco wanted to reward customers for shopping by providing vouchers when a customers purchases were more expensive at competitor stores

As you shop your basket is checked against the prices at Asda, Sainsbury’s and Morrisons. If your shop is cheaper from a competitor, you receive a voucher for the difference (up to £10) – in store these are printed on the receipt, online they are sent via email.

Deliverables:

  • Solution architect as key member of the design team
  • Implementation of a calculation engine to receive feeds and make real-time calculations
  • Integration with stores for printing at till and with online system for email
  • Deployment of solution in test stores and then rollout to all stores

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