Store Friendly Supply Chain
- Good progress to date
- 6 day working and delivery
- 70% singles delivery
- Still to do
- Re-lay warehouses and DCs
- Some supply disruption
- Higher stocks
Notes
The other major change programme is our supply chain.
The new store friendly supply chain will improve efficiency by delivering to stores in a way that better reflects what they have sold, reduces workload in store and in time the need to hold so much backroom stock.
In the last six months we have moved our warehouses, distribution centres and deliveries to 6 day working.
We now deliver 70% of lines in singles which will reduce store workload and stock holding.
In the new year we must re-lay our warehouses and distribution centres so that product delivery more closely aligns with in-store lay out.
Changes on this scale inevitably cause some disruption to supply which we are currently mitigating by holding greater stocks in store. This is helping us protect availability which remains good but not perfect.
This is a big programme and it is being delivered in a low risk way. The work has little capital spend and achieves its aims through working our existing assets harder.
We are at very early stages with these changes and it will take time to optimise the operation.
Now I would like to give you a preview of our plans for Christmas.
