The case describes a corporate decision to move from a country-based sourcing model to a centralized Group Food sourcing model. What changes in Tescos environment and corporate strategy precipitated this change in Tescos sourcing model? Is the new model a better fit for Tesco? Why?

At Tesco, the purchasing managers have typically been responsible for merchandising and pricing products as well as, owning the margin on their products. Compensation could be assessed based on profitability. Given the change in supply chain strategy to a centralized purchasing approach, separating purchasing from merchandising, how should Group Foods performance be assessed?

Tescos new approach allows the company to cut out intermediaries and deal directly with suppliers. Intermediaries (e.g., transportation and logistics firms, importers, meat processors, etc.) are then paid for the specific services they render. What are the advantages and disadvantages of this new approach?