Annual Report and Accounts - Hemscott IR

T R A V I S P E R K I N S A N N U A L R E P O R T A N D A C C O U N T S 2 0 1 2
Our Business Model
Travis Perkins is a multi-channel operator selling a wide range of building materials through four divisions to the
trade and consumer primarily through a network of mainly UK branches.
Source products
from over
10,500 suppliers
Stock and then
distribute goods
from 1,890 branches
and 24 warehouses
using a fleet of over
2,300 vehicles
Sell goods and
services to over
190,000 account
and countless cash
customers
OVERVIEW
Our business model is based upon:
• Being the number one or number two distributor in
the markets in which we operate;
• Achieving growth through investing in organic
initiatives and acquisitions that leverage our fixed
and central costs to deliver further benefits from
increasing economies of scale; An organisation
structure, which devolves responsibilities to those
colleagues close to our customers whilst providing
the benefits of shared central services;
• Thorough performance management monitoring
systems and processes;
• A technology approach, where retaining control
by writing our own systems delivers lower cost,
more flexibility and higher matched functionality,
particularly in areas such as logistics, supply chain
and multi-channel;
• Incentivisation structures that are linked to
performance and encourage improvement;
• A strong culture, which extends to the types of
people we employ and the values and leadership
behaviours we encourage.
In delivering our product
solutions we...
Our products are distributed to
the end user through a supply
chain network which…
We strive to provide our
customers with the highest levels
of service possible by…
Neil Ives,
P & H Product
Leader and
Danny
Mackintosh,
Branch
Supervisor,
City Plumbing
Are committed to ensuring that we
buy quality goods and materials
from responsible and ethical
sources, at prices that are fair to all.
Purchase a broad range of over
100,000 products from UK and
overseas manufacturers and
distributors.
Stock a wide range of own brand
products, particularly in our
consumer business, as well as
branded goods supplied by market
leading companies.
Achieve economies of scale by
focussing our purchases towards a
limited number of key suppliers.
Are the largest or second largest
customer for a considerable number
of our suppliers, many of whom
have forged close relationships with
the Group over a long period of time.
Operates from 24 central
warehouses, enabling us to buy
goods in bulk and distribute them to
our branches in smaller quantities.
Utilises a distribution fleet of
192 vehicles to transport product
between warehouses and branches.
Makes around 350,000 branch
deliveries p.a.
Engages over 1,650 colleagues to
ensure the efficient movement of
stock throughout our organisation.
Improves branch efficiency by
ensuring we have an appropriate
mix of suppliers delivering either
direct to our branches or to our
central warehouses.
Gives customers the opportunity
to transact with our multi-channel
businesses through a nationwide
branch network, via the telephone or
over the internet.
Employing the best available people
and investing in their training and
development.
Ensuring branches maintain high
levels of stock availability in full
project quantities.
Offering advice and building related
services that support our customer’s
needs.
Using a fleet of 2,300 vehicles to
provide an efficient, on-time-in–
full, local delivery service, where
customers have chosen not to
collect goods from our sites.
Making credit available for
approximately 80% of customer
purchases in our merchanting
businesses.
Ensuring our prices reflect both the
quality of the goods we sell and the
service we provide, whilst remaining
competitive.
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