Supply Chain Consolidation | Retail

Large retail supply organisation with over 36 locations in Australia acquired a smaller business to compliment their existing product range and services. The integration involved terminating multiple site leases and integrating the entire operation into a central distribution centre.

Core Problem

• Running both Microsoft Dynamics and SAP was cost prohibitive.
• Supply chain foot print of 6 warehouses, $14m in Inventory and 60 FTE’s.
• Vendor management of inbound consignments extremely poor, no SLA's.
• Purchasing, planning and replenishment were all outside their ERP systems.
• Paper based systems, processes, extensive delays and lack of KPI’s.

Problem resolution

• All systems integrated with SAP ERP platform to support the business.
• Centralised distribution and closed multiple remote/satelite warehouses.
• Competencey based training and awareness programs implemented.
• Centrallised inventory strategy implemented to control investment.
• Standardised purchasing and planning functions to support strategy.
• Vendor management improvements implemented, standards and SLA metrics.