Tesco has selected Micro Focus to extend its supply chain application and support the retail giant’s move into the US market.
The retailer’s bespoke Continuous Replenishment supply chain management system monitors and controls its in-store inventory. Micro Focus will update and extend the system so it can be rolled out in Tesco’s California datacentre to support the first US Tesco store, which is due to open later this year.
The US grocery market is worth an estimated $600bn (£300bn) a year and is expected to expand by 40% over the next five years, making it a key location for Tesco as it expands.
The application update will also provide a platform for Tesco’s continuing expansion elsewhere in the world and will be rolled out across its global datacentres.
Tesco has adopted a strategy of using a common operating model across its businesses worldwide. It has pioneered an approach to IT systems deployment to support this, known as “Tesco-in-a-box”, where new country operations are provided with all the key systems they need, such as supply chain and replenishment applications.
Micro Focus will enable the retailer to maintain a single source stream for both mainframe and UNIX versions of its Continuous Replenishment application, ensuring that future enhancements to the UK-based mainframe application can be rolled out internationally on existing IBM System p servers running UNIX.
The move is expected to be cost-effective, allowing the retail giant to use its existing servers and to avoid the need to invest in additional support for its international operations.
Colin Cobain, group IT director at Tesco, said: “Elements of our common operating model are already in place and benefiting some of our businesses. Micro Focus’ modernisation expertise is not only helping us maintain the momentum behind this strategic IT project, but is also playing a key role in the development of our US presence.”