Evaluation of Competitive Advantage in Tesco Fresh Milk Supply Chain

2. Evaluation of Competitive Advantage in Tesco Fresh Milk Supply Chain

Tesco fresh milk main competitive advantage is their close relationship with both Tesco Sustainable Dairy Group (TSDG) and suppliers. Tesco holds supplementary contracts with over 700 dairy farmers who supply fresh milk to the company via Tesco's milk suppliers (currently Arla Foods and Robert Wiseman Dairies). The close relationship between TSDG, Tesco and suppliers highlights that the fresh milk supply chain is efficient from farm to consumer.

Sustainable Advantage

Back in 2009, Tesco worked with some select members of TSDG to calculate the life-cycle carbon footprint of the milk sold in stores, and has become the first retailer in the UK to share the information with customers by carbon labeling milk as part of an on-going drive to help customers make "green" purchasing decisions (Smithers, 2009). This strategy highlight a competitive advantage as Tesco is the first to display carbon footprint label on milk which is adding value to consumer.

The extensive carbon footprint work of Tesco shows that over 73 percent of the carbon emissions come from dairy farming. This is mainly due to the result of cows burping methane and the use of nitrogen-based fertilizers used in growing their food. Tesco is already found a way to reduce these emissions alongside the dairy industry and farmers, moreover, identifying