Delivering one of the largest integrated supply chain transformations in Europe

Increasing competition has led to a switch in the power balance between retailers and their customers. We helped our client to address this by designing and delivering one of the largest integrated supply chain transformations in Europe.

The situation

Our client was one of the UK’s leading high street retailers, providing food, clothing and general merchandise to over 20 million customers that visit its stores each week. However, with a changing market, customers were becoming more demanding. Lack of investment in buying and merchandising systems had led to poor availability, high stock levels and eroded margin.

The solution

We worked to shape the future supply chain vision; creating an end-state business design that knitted together all aspects of buying, merchandising and supply chain, with a multi-year transformation roadmap to deliver a truly customer driven supply chain. We implemented new capabilities across three areas:

  • Merchandise Financial Planning and Macro Space: designed and implemented business processes and applications to ensure sales, margin and stock decisions aligned with the commercial strategy.
  • Product Lifecycle Management: improved design and production capabilities, better connecting them with their supply base to reduce product lead-times, capitalise on supplier negotiations and provide end-to-end visibility of order progression across the critical path to ensure effective launch management.
  • Allocation and Replenishment: centralised stock allocation through demand forecast based allocation and replenishment, ensuring stock was placed effectively across channels and store locations.    

The result

We helped our client to clarify its strategic direction and build a future vision ensured the delivery of a truly transformational supply chain, connecting the component parts. Improving visibility and customer focused information has led the programme to deliver significant tangible benefits.

Whilst the physical benefits of increased sales, improved margins and lower inventory costs were not insubstantial, the benefit from improved performance achieved when all elements of the design were embedded across the business cannot be underestimated.