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

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The three key facilitators for having the highest impact in bringing about the change in Myer supply chain are; total integration across the company, improved efficiencies across the company and ongoing education across the company. Bernie Brookes, CEO, Myer customers) in ensuring we support them in whatever way we can to make it easier for them. We have additional different delivery points for the stores within the RDCs to enable the stores to replenish merchandise far quicker than before. This is in line with getting it ready for the ‘Store of the Future’ where there will be lesser reserve spaces available in stores. SaFETy To ensure the safety of all team members and customers throughout the entire supply chain – once again, we have significantly improved safety through improvements in systems that have been implemented. Safety remains a very high priority in all the things we do in supply chain. SPEEd Speed is key in a department store format. ‘Fastfashion’ is all about speed to market. Speed and efficiency are critical to achieve Growth through innovation MSC suppports Australian industry by offering an unparalleled service network throughout the world. Fremantle: (08) 9336 0500 Sydney: (02) 8270 4000 Melbourne: (03) 9254 1444 Adelaide: (08) 8341 1644 competitive advantage in the marketplace. Our efficient supply chain has dramatically improved the speed at which Myer can move goods through its RDCs and into stores. This has led to buying teams having more faith in our system and hence lesser airfreight costs. We also have improved visibility of our overseas products with the implementation of better systems that helps us track our merchandise. Moreover, if we become sluggish, this leads to a build up of inventory and an increase in holding costs. It also means that we are more reactive than proactive, and that we are prone to more markdowns than profitable sales. Acceleration in speed to market helps to reduce inventories, and gives the business greater flexibility – lowering the risk of being caught out by changes in demand. FLExIbILITy Where the supply chain was Contact your local MSC office or visit our website at www.mscaustralia.com Brisbane: (07) 3909 4666 Burnie: (08) 6431 8431 Mediterranean Shipping Company (Aust) Pty. Limited, ABN 12 003 760 638 as Agent for MSC Mediterranean Shipping Company S.A. www.media.net.au | 89
previously just another function of the business, it is now considered one of Myer’s core competencies – and an essential aspect of the retail business. It is no longer just about the ‘push’ from RDCs. Under the push mentality, stores had little say in the product they received and became ‘choked’ with product. Our system is now much more about ensuring two-way communication across the entire supply chain and involves both ‘push’ and ‘pull’ strategies. We work closely with the stores and our customers. cOST Cost is obviously an important factor for any business and efficiency within the supply chain has been critical to reducing costs. However, Myer is based on a service-driven model, so therefore service is the primary driver, with cost savings being an important corollary of service improvements. We have introduced a new Labour planning and scheduling tool at each of our RDC, to help us benchmark and measure our performance on a daily basis. Besides the DCs we measure every single KPI in supply chain. One of our imperatives is “if we can’t measure it, we can’t manage it”. These greater efficiencies have had other important roll-on effects for the business, including allowing the business to release floor space for retail trade. For example, where previously only approximately 60% of space was available for trading (with the remainder devoted to storage of inventory and administration) we are now aiming to use closer to 80% of the space in stores for retail space (in the new Myer Melbourne store, the expectation is closer to 90%). As a result, Myer can carry more and a broader range of stock in its new and redeveloped stores than it did previously. Supply chain is about ‘buy, move, sell’. Suppliers come in at the point when our buyers place orders – so if product is delayed at that point, then the whole system breaks down. Our suppliers are critical to ensuring that our product is delivered in full, on time and to specification (DIFOTIS). Unlike many of our competitors, 90 | www.media.net.au “Star Track Express was founded in 1974 and has been providing logistics solutions to many of Myer’s leading retail brands for over 30 years delivering goods to Myer stores and distribution centres on a daily basis. Our long association has enabled our two organisations to develop a true working partnership, which has been to our mutual benefit. “One of the reasons Star Track Express remains the undisputed leader in transport logistics is that we invest the time to fully understand the nature of the businesses we provide service to. In keeping with this, Star Track Express is always mindful that timely and reliable supply is vital to the success of Myer’s retail business. The Star Track Express Operations Team meets personally with the Myer DC staff to pre-plan deliveries to ensure Myer’s specific requirements are met “on time every time”. “Pacific Brands and Myer have a very long history and as such our association with the company spans many decades. Myer is an experienced retailer and combined with our mutual scale and strengths, we are able to work cohesively together to maximise many market opportunities and achieve collective goals.” Sue Morphet, CEO, Pacific Brands “Like Star Track Express, Myer is completely in tune with their business, and more importantly, their customers. A substantial number of Star Track Express customers supply Myer Stores and their DCs enabling improved efficiencies in deliveries through consolidation to meet their requirements. Benefits such as cost-effectively increasing speed to market pay enormous dividends for Myer, their suppliers and Star Track Express as their carrier. “Apart from their goods delivered on time and intact, Star Track Express provides Myer with complete visibility on all deliveries via our online Track and Trace systems. For Myer and their suppliers, customer service is never further than a phone call or mouse click away.” Derek Lightfoot, Chief Executive Officer, Star Track Express Pty Ltd
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