Based on the cumulative sales, Tesco places orders with its suppliers by means of electronic
data interchange (EDI). As volumes and product ranges increased during the 1990s, food
retailers such as Tesco aimed to destock their distribution centres by ordering only what
was needed to meet tomorrow’s forecast sales. For fast-moving products such as types of
cheese and washing powders, the aim is day 1 for day 2: that is, to order today what is
needed for tomorrow. For fast-moving products, the aim is to pick to zero in the distribution
centre: no stock is left after store orders have been fulfilled and deliveries to stores are
made as soon as the product is picked, which increases the stock availability for the
customer. The flow of the product into the distribution centre is broken into four waves and
specific products are delivered in different cycles through the day. This means that the
same space in the distribution centre can be used several times over.