Modern infrastructure

  • Renewal of IT infrastructure
    • New tills in all stores
    • 100 stores now have Radio Frequency technology
    • 3 of 4 SAP Backbone phases now completed
  • Store friendly supply chain
    • 82% of lines delivered direct to shelf
    • Lower stock holding in store
  • Lower cost base in Nottingham
    • 1/3rd fewer jobs in Head office
    • Manufacturing

Notes

In 2002 we started our "getting in shape programme" and over the past year we have made substantial progress.

On IT, we have introduced modern, efficient systems that get the right information to stores. The work has been complex, and there is more to do, but we have started to see real results. All our stores now have new tills - and tills are the anchor of any retail organisation, driving sales and replenishment and giving us vital information on our customers' spending patterns. Some larger stores are trialling radio frequency technology to allow them to manage stock more efficiently.

Meanwhile our "backbone" core SAP system is three quarters of the way through its full implementation, and benefits are already becoming clear - such as helping to make our work processes simpler.

Our work to improve the supply chain is more than 80 per cent complete. We have moved from three deliveries a week to stores to daily deliveries, allowing colleagues to cut down the amount of stock held in the back of our shops. Delivering smaller amounts of stock more frequently has meant a reduction in the work we put on our people in store and better on-shelf availability.

And our programme to lower our cost base in Nottingham has continued. One in three head office staff left the organisation over the past year - with jobs being taken out of every department and at every level.

LINK: Going forward, our strategy is clear

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