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

Myer’s supply chain is a core
competence. Our entire system is
in-house and completely integrated
with the business and works fluidly
with stores and across all merchandise.
We have over 1200 suppliers across 12
different business models (including
electrical, footwear, fashion, furniture,
cosmetics) and deal with over 240,000
active SKUs (stock keeping units).
Clearly there is not a ‘one-size-fits-all’
answer, so we need to ensure that our
systems cater for all needs.
We have worked hard to ensure that
our relationships with our suppliers
are strong through the development
of Strategic Supplier Plans (SSPs). A
key aspect has been collaborative
forecasting, which allows our suppliers
to plan their resources on time. By
working collaboratively with our
suppliers, we can work to reduce costs
“Revlon has worked alongside Myer
for over 50 years to achieve beauty
leadership in colour cosmetics.
Revlon has brought to the Myer
business an iconic global brand,
which offers a range of affordable
colour, skincare and fragrance
products.
“While Revlon is a global, iconic
brand, our strength is our ability
to interpret and react to local
needs and execute with 360 degree
excellence. The Myer business
affords Revlon the ability to bring
to its customers exciting in-store
theatre, such as the recent Myer New
York Event in May of 2008. With this
event, Revlon was able to maximise
sales in the Myer business with
the launch of its innovative first to
market technology makeup, Custom
Creations Foundation. Revlon also
has over 200 fully-trained Beauty
Advisors in the Myer business who
communicate Revlon’s product
benefits to over 800,000 Myer
customers on an annual basis.
“It is one of Revlon’s objectives to be
the most valuable cosmetics partner
for all – they carry less inventory and
as do we.
Our goal in our supplier relationships
is to ensure transparency, visibility
and the sharing of plans so that we
work together for the same outcomes
and there is a win-win situation for
both sides. We also rely on support
from our non-merchandise suppliers
for example in transportation, IT and
professional services.
Myer has a brand promise and we need
to ensure that our suppliers can deliver
on this. They also need to have strong
functional background – including the
right systems and accreditation. We
also make it a priority to work with
our suppliers to ensure they have the
capacity to work with us – if they are
the right brand, we will work with them
to make sure that they get the right
to Myer. Revlon and Myer meet
biannually for Strategy Meetings with
the objective of mapping out a retail
plan that brings both businesses
profitable growth. Outside of these
meetings Revlon and Myer work
together to investigate best practice
approaches to retail.
“Revlon have always found that
Myer can execute our 360 degree
experience brilliantly for our
customers. As the number one
selling colour cosmetic brand in
Australia, Revlon have a layered
and comprehensive approach to
marketing our products. From spokes
model positioning, advertising/
PR and merchandising initiatives
through to POS, promotional
execution and fully-trained beauty
advisors, Myer enhances our strategy
with precise execution at the retail
end. Myer is a sophisticated and
leading retailer in the Australian
market. Revlon is the leading colour
brand in Australia. It makes sense it’s
a powerful combination.”
Rob Garratt, Commercial Director,
Revlon Australasia
systems in place. We work together
to streamline disciplines across
both organisations and have better
efficiencies.
We work hard to ensure that the
relationships we have with our
suppliers are open, transparent,
and characterised by open and
constant communication. Despite
having set high benchmarks in supply
chain operation, we are continually
working to enhance our supply chain
operations.
As a part of this, we have an obligation
to work closely with and educate
our suppliers, so as we go along our
journey, we work to ensure that they
come along with us.
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