Supply Chain Focus by Prakash Menon, Supply Chain Director for ...

international freight costs, despite
higher volumes and were 11% lower
in domestic freight in spite of opening
new stores and increases in fuel
charges. The introduction of roll-cages
across the majority of stores has
dramatically improved the efficiency
of transportation of goods from the
store dock, to the floor. Off-loading
time now has been reduced to around
seven minutes, where previously it
was up to 45 minutes using pallets.
Stock can also now be moved during
trading hours, where previously this
was not possible. Other achievements
during the second year include;
• Achieving 99.98% e-commerce
compliance with suppliers
• Reduction in the error rate by 60%
in ASN (Advanced Shipping Note)
compliance
• Reduction in international lead
times (overseas transit time from
hubs to stores) from 42 days to 24
days
• Streamlining disciplines across
suppliers to reduce late deliveries
by carriers (transport providers) by
85%
• Introduced more delivery points
from 221 originally to 451 now into
88 | www.media.net.au
our stores making it easier and
faster to replenish from the store
dock to the shop floor
• Relocation of home-delivery
function back into RDCs from
external suppliers – a saving of
around $2 million.
The five key principles that we
strive to achieve within the Myer
supply chain framework are critical
to ensuring that we achieve our
company goals. These five principles
are as follows;
SERvIcE
To ensure that all product that comes
through the Myer supply chain is both
store and customer friendly – that is
to say, that the product is ‘store ready’
and ‘floor ready’ and can be quickly
and efficiently brought onto the floor.
This has been achieved through the
introduction of a number of new
systems, such as roll-cages and other
initiatives such as ‘Goods on Hangers’,
‘Source tagging at source’ and so
forth.
Each team member working in Myer
supply chain has an ‘adopted store’
in line with the Company’s “Adopt
a store” program. This helps us to
proactively work with stores (our
“Our relationship with Myer is a
positive and proactive one. We
work with a great buying team
who are always looking for new
and creative executions for our
products within the Myer stores.
We have been able to establish
many different retail strategies
that have provided great results
for both organisations. The broad
audience that Myer attracts is
certainly a key benefit. Nintendo
can reach every different type of
person in the iconic Myer stores
all across Australia. This depth of
coverage is important to Nintendo
as more and more people are
playing video games and we need
retailers that offer this broad
demographic coverage.”
Greg Arthurton, Marketing
Director, Nintendo