shd excellence in logistics Homebase/Unipart l
Faced with the dual challenge of taking £20m worth of inventory out of its supply chain and driving productivity improvements across its distribution network, DIY retailer Homebase has leveraged its collaborative relationship with Unipart Logistics to deliver on its objectives.
Collaboration delivers
H
omebase is one of the UK’s most readily recognised retail brands. As the second-largest home improvement retailer in the
country, the company sells over 30,000 products across its DIY & decorating and home & garden ranges, and has a growing internet offering. Homebase serves over 70 million customers a year through its network of around 350 large, out-of-town stores and has plans in place to add 15 new stores a year. Maintaining on-shelf availability
across its retail network, with such a diverse product range, is a daily challenge for Nigel Basey, head of distribution at Homebase. Against this daily requirement for high product availability, Basey has been working to achieve the company’s ambitious goal on inventory. Homebase has been engaged for the past two years in a strategic plan to reduce inventory by £20m a year in order to improve cash- flow. Many retailers have attempted similar aims; however few have achieved them so successfully.
Reduction in stockholding Working closely with logistics service partner, Unipart Logistics, Homebase has made significant reductions to stock holdings, improved productivity within the supply chain, cut costs and radically restructured its distribution centre network to bring the financial benefits sought - and at the same time, the company has improved on-shelf availability in store.
Basey describes the implications of the reduced stock holding on the company’s distribution network: "We
16 ShD January 2012
www.PressOnShD.com
excellence in logistics
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