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Tesco turns to facilities firm to boost KPIs

22 January 2016

TC Facilities Management (TCFM) provides FM services to distribution centres across the UK including Tesco's distribution centre (DC) in Livingston, Scotland.

It is the supermarket's largest operation in Europe servicing over 620 stores and operating 365 days a year with up to 1800 staff.

Tesco serve some 66 shoppers every second, so ensuring that products are on the shelf, wherever the people are who need them, is essential. This is where Tesco’s network of distribution centres are critical. 

Keeping the Livingston DC working like a well-oiled machine to enable deliveries to be made on time, every time is paramount. Tesco had highlighted a number of issues that were not delivering the required efficient, seamless operations. In particular, there was a sense of lack of controls, concerns about facilities staff working to health and safety standards and using equipment that was unreliable or broken. This was made all the more evident in KPIs consistently being failed and a sense that the operational effectiveness of the site was reduced. Coupled with this, the facilities staff’s morale was perceived to be low with a resulting high staff turnover.

To address the challenges highlighted, TCFM adopted a multi-faceted approach. This included investing in the near term with new and updated equipment, training on the effective use of the equipment as well as revising the methods of clean to ensure that the sites standards saw an improvement. Rosters were restructured with increased supervisor support, as well as the development of a recognition programme to enhance morale.  

Communication with Tesco colleagues was also seen as a critical element. To this end, regular meetings with both the TCFM team and key stakeholders were introduced to establish clear communication and reporting. This highlighted both best practice and areas for improvement measured against agreed KPIs.     

A dedicated management team was put in place to invigorate the FM team and ensure that all services were delivered to mutually agreed goals in accordance with operational requirements of the DC.

Some of the key highlights of what TCFM was able to achieve include consistent high performance against agreed KPIs.

Distribution centre manager Scott Paton said: “Following a flawless FM service transition process, the TCFM team have quickly become an integral part of the overall Tesco DC Team based on their ability to 'Add Value' every day through improved service delivery standards across my asset.”