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Inditexdrivesgrowth withlogistics investment


Inditex, the high street fashion groups whose brands include Zara, investedmore than 1.4 billion euros last year – notably on rolling out new projects in the logistics division and modernising the eight distribution centres currently in operation. The group’s growth has led to an expansion of


more than 70,000 sqmat Inditex corporate headquarters in Spain.The project is currently at the construction stage and is scheduled for inauguration in the second quarter of 2013. The group said the expansion also directly


affected the company's logistics centres in Spain, as itmust constantly adapt all of its distribution hubs, including those in Arteixo (Galicia) andMeco (Madrid). “Massimo Dutti’s new distribution centre in


Tordera (Barcelona),which began operating in 2012, is one of themost technologically advanced distribution logistics centres in the world. “Another noteworthy project currently


SAP real time software


SAP plans to acquire SmartOps, a provider of inventory and service- level optimisation software, paving theway for SAP to develop real-time supply chain software. SmartOps provides operating


parameters and targets for supply chainmanagement planning, co- ordinating capacity, inventory, demand, lead time and product availability variables that enable customers to optimise inventory and service levels. Abdul Razack, senior vice


president and head of customer engagement and strategic projects at SAP, said: “With the addition of SmartOps, SAPwill be able to dramatically accelerate and improve the performance of real-timeworld-class supply chainmanagement solutions that give customers the decisive competitive edge to succeed and growtheir business.” SAP has a long-standing


relationshipwith SmartOps, which has developed algorithms that use predictive analytics to helpmanage global distribution networks and vast,multi-stage supply chains. It reckons that SmartOps


solutionswill be enhanced by SAPHANA,which empowers customers to run their businesses in real time—to analyse, predict, react and adjust instantly. The deal is expected to be completed in the first quarter.


Supply Chain Standard April 2013


underway will install a hanging garment automated silo at the Zaragoza logistics centre, a systemwhich is set for completion in the second half of 2013. Separately, the company in 2012 began implementing its plan to build a new distribution centre in Cabanillas (Guadalajara).” These projects entail investments of €450


million in Spain – tangible evidence of the impact of Inditex retailers’ global growth on group operations and investments within Spain. Group sales rose by 16 per cent to €15.9


billion last year,while net income totalled €2.3 bn – an increase of 22 per cent froma year earlier. Last year Inditex opened 482 stores in 64


differentmarkets, including the initial launches in five newmarkets: Armenia, Bosnia- Herzegovina, Ecuador,Georgia and the Former Yugoslav Republic ofMacedonia. It now has a combined total of 6,009 stores in 86markets.


News 05


Unilever plan for European inventory


Unilever is implementing a new systemto optimise its forecasting and lower its European inventory. Themanufacturer has


implementedTerraTechnology’s Demand Sensing andMulti- Enterprise Inventory Optimisation solutions across Europe. These changes have been put


in place to improve forecast accuracy and help create amore agile and efficient supply chain, contributing to significantly lower inventory and improved on-shelf availability. “Unilever implemented


Demand Sensing andMulti- Enterprise Inventory Optimisation in Europe after a successful implementation in North America, said Fabrizio Bortolotti, European planning director atUnilever. “More accurate forecasting and


better inventorymanagement complements our lean manufacturing strategies, allowing us to capture growth opportunities and optimize service to our customerswithout the risk of carrying excess inventory.”


FSDF calls for transparency


Diageo targets £60m supply chain savings


Drinks group Diageo has set out plans to refocus its global supply and procurement operations with the aimof saving some £60ma year. Responsibility for local


operations will be transferred to themarkets and regional structures will be reduced. The global supply organisation will continue to be responsible for ensuring excellence across all operations. Costs associated with the


restructuring are estimated to be some £100million. Diageo’s brands include


Guinness, JohnnieWalker and Smirnoff. The group said the changes followed the reshaping of the in-market organisations


through the implementation of a 2011 operatingmodel review and is a consequence of Diageo’s increasing presence in new faster growthmarkets. “Further work will be required


to establish the exact nature of the reorganisation to bemade. However an initial review has already established that efficiency-driven cost savings can be delivered which together with savings fromfootprint changes and cost reductions in respect of the regional supply organisations are expected to amount to approximately £60m a year. “These savings are expected to


be achieved in three years,” the group said.


The Food Storage and Distribution Federation is calling for transparent, robust and reliable foodmanagement of international food chains, following recent scandals of beef contaminatedwith horsemeat. Chief executive Chris Sturman


said: “The evidence of horsemeat introduced as a rawmaterial into the processed food and ready meal industry is disconcerting for everyone.” Sturman pointed out that a


robust control process covers the storage and distribution chain. “Regrettably, it does not cover procurement,manufacturing and processing sectors,where it appears these kinds of public health scares have arisen.” He said: “FSDFmembers...will


continue to ensure that good qualitymeat, in the right condition and properly identified and labelled,will be delivered fromabattoirs andmarkets toUK and European retail,wholesale and food service customers.Only in thatway can consumer confidence be justifiably maintained.”


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