Healthcare
First
At the heart of our five key drivers is our continued determination to push for efficiencies. This has been an on-going programme of IT changes, supply chain reforms, head office efficiencies and better buying programmes and over the past six months we have delivered productivity savings amounting to around half of our £70m target for the full year.
Our stores are now more efficient and we continue to see lower costs for head office. Over the last six months we have managed to drive efficiencies in stores through our work on the supply chain which is largely complete. Stock holdings are lower and the stock that is in store is more readily accessible so our people can put it on shelves quickly and easily. Stock availability has remained good throughout this period.
All our stores now have the new tills, which provide better management information.
Let me give you an example. Two years ago, Boots store managers only got a real idea of what they sold at the end of each week when they received paper-based records of stock movements.
The new systems mean that is now very different. Each store manager can now get sales updates - divided by category and measured against targets - at the touch of a button whenever they want on the new till systems. If a category is under-performing, they can dive straight in and actively manage the situation.
We have continued to push for better buying through Far East sourcing, e-auctions and better negotiation with suppliers.
But whatever our achievements, in retail you cannot afford to stand still and we will continue to look for further improvements.
