Major international retailer Tesco says it will give thousands of its suppliers greater insight into the buying habits of its customers and the promotional activities being run in its stores by allowing them to access a brand new online portal called Tesco Connect.
The grocer, which is known for collecting a large volume of data relating to its customers' purchasing behaviour via its ClubCard loyalty scheme – a system managed and analysed by its information partner Dunnhumby – said the new website would improve the experience of supplying Tesco while also creating benefits for shoppers.
Designed specifically with suppliers in mind, Tesco Connect promises to help those companies identify product trends and prepare for upcoming promotions, as well as apparently enabling them to respond more quickly to any eventual changes in customer demand.
Tony Mitchell, Tesco's supply chain director, said that combining existing forecasts with information on how quickly a product is selling would allow the retailer and its suppliers to achieve better levels of product availability for customers.
'We are always looking for new ways to improve the service for customers and the information and insight shared through Tesco Connect comes from several years of development and technical innovation,' he commented.
'We've already had some fantastic feedback from the suppliers who have worked with us on the new portal,' he added. 'Many of them have told us that the forecast data has begun to change the way they work and will help re-focus their efforts.'
Suppliers such as Innocent, Nestle and Unilever have been involved in the pilot, which has already delivered measurable benefits; with the number of shortages reduced by more than a third.
The service was made available to an initial group of suppliers on 31 May.
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