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

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.
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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,
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“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