Myer is AustrAliA’s lArgest depArtMent store group And the nuMber one shopping destinAtion <strong>for</strong> More AustrAliAns thAn Any other depArtMent store. The privately – owned business has a turnover in excess of $3 billion annually and offers the latest in men’s, women’s and children’s fashion, as well as accessories, cosmetics, homewares, furniture, electrical goods and much more. There are currently 65 Myer department stores throughout metropolitan and regional Australia and plans to open up to an additional 80 Myer stores across Australia. Each store varies in size from smaller regional stores to multi-level suburban and downtown stores, and aims to meet the needs of its local market and community. Myer‘s flagship store in Melbourne is the largest department store in the Southern Hemisphere in turnover and size and is host to the annual Myer Christmas Windows. The Myer business has a strong history of community involvement and is famous <strong>for</strong> its celebration of the festive season with its spectacular Christmas windows – an anticipated tradition that has been attracting Christmas shoppers from far and wide since Melbourne’s Olympic year in 1956. Myer is at the <strong>for</strong>efront in the development of new retail events, ideas and opportunities to enhance customers’ shopping experiences. The company’s new and refurbished stores have been designed to provide the ideal shopping experience, incorporating beauty treatment rooms and com<strong>for</strong>table, spacious parent rooms. They also offer customers the MYER one loyalty program and an in-store credit card program to reward their loyal customers. With a strong focus on customer service, Myer provides an inspirational shopping destination <strong>for</strong> all ages. supply chain. A key part of establishing our supply chain strategy was consultation with suppliers, buyers and stores. Following a detailed network optimisation study, we determined that our <strong>for</strong>ward strategy would include four Regional Distribution Centres (RDCs) one each in Brisbane, Perth, Melbourne and Sydney – each of which would act as the Distribution Centre <strong>for</strong> the cluster of stores in the relevant region. Another key aspect of rewriting our strategy was to look at our international supply chain. Working with our partners in China, Cargo Services, we now have four key hubs – three in China – Shanghai, Shenzhen, Hong Kong and one in Singapore. A further key goal was in July 2007 to transition and significantly advance our e-commerce capabilities. All in<strong>for</strong>mation, including the Gateway (communication between our IT function and supply chain) had to migrate across from Coles to Myer. All supply chain goals <strong>for</strong> year one post the acquisition were successfully <strong>Supply</strong> <strong>Chain</strong> <strong>Focus</strong> <strong>by</strong> <strong>Prakash</strong> <strong>Menon</strong>, <strong>Supply</strong> <strong>Chain</strong> <strong>Director</strong> <strong>for</strong> Myer <strong>Supply</strong> <strong>Chain</strong> is Sexy’. As one of our cultural imperatives, those four words have raised the profile of supply chain and raised awareness of the potential benefits both operationally and financially. Bill Wavish, Executive Chairman, Myer For Myer, supply chain is not simply about distribution centres, but rather the entire ‘end-to-end’ process. We aim to ensure that the entire process, from initial concept, through to source, to distribution centre and ultimately to store, is managed efficiently – with service, safety, speed, flexibility and cost being our key principles and drivers. At the time of acquisition in 2006, (when Myer was acquired <strong>by</strong> private equity firm Texas Pacific Group (TPG), the Myer Family Company and members of the Myer Management Board) Myer inherited a build up of inventory and 24 off-site warehouses, so our first priority was to consolidate, simplify and streamline. The first step in achieving these goals was the holding of our ‘History Making Clearance’ that enabled us to clear out $400 million worth of stock and paved the way <strong>for</strong> the removal of the 24-off-site warehouses. We then set about writing the strategy <strong>for</strong> the new Myer supply chain, including the development of five key principles; service, safety, speed, flexibility and cost. Myer partnered with supply chain specialists XAct Solutions, led <strong>by</strong> Peter Ramsay and Byron Patching, to assist in developing the strategy and the implementation of many of the mission critical components of our new achieved, such as the transitioning of supply chain e-commerce from Coles to in-house within one year, ahead of time and budget. The opening and going live of four standalone RDCs and four international hubs was achieved, as was the re-writing of all contracts <strong>for</strong> Myer supply chain. Some of our second year achievements to date include reducing our distribution centre operating costs <strong>by</strong> 47% on the previous year (having gone to market predicting a 40% reduction in costs). We were also 22% lower in www.media.net.au | 85
CRYSTELLE VAN HEUSEN NANCY GANZ DAVENPORT 86 | www.media.net.au