John Lewis - Descartes Systems Group · 1Man Supplier 8.5 m Orders 3.5 m Orders 3m Orders 2.5 m...
Transcript of John Lewis - Descartes Systems Group · 1Man Supplier 8.5 m Orders 3.5 m Orders 3m Orders 2.5 m...
John Lewis
Dino Rocos, Operations Director
“A Time of Change”
The Customer Proposition continues to Evolve
“Personal”
“Mass”
“Mass Personalisation”
Customer Expectation also continues to Evolve
Shopping Enthusiasts
Assortment width
Availability
Service Seekers
Added value services
Fulfilment integration
Solution Demanders
Rapid fulfilment
Convenience
Customers want to transact in different ways
29% of customers research in shop and buy online
63% research online and buy in a shop
19% of shoppers use mobile to research before they purchase
Retail is having to respond
Supply Chains are also having to respond
Omni-Channel Speed Agility
Breadth of Offer Customer Focus Critical Dependency
Making Supply Chains more Complex
Magna Park I-Force Clipper Blakelands Northampton
Click & Collect Home
Delivery
Direct to Customer
1Man
Supplier
2.5 m Orders 3m Orders 3.5 m Orders 8.5 m Orders 1.5 m Orders
2.6m Orders 3.2m Orders
0.3 m Parcels
2 Man
International
Services
9.5 m Parcel
dels 4.3 m 2 Man
dels
1.4 m Orders
1.2 m Orders
And more Expensive
Supply Chain Costs as a % of Sales
11%
12%
13%
14%
15%
2011 2020
Service eg: online
Retailers are reviewing their Supply Chains
What are the questions we are trying to answer?
Customer Challenges
Financial Challenges
Supply Chain Challenges
Change Challenges
Customer Challenges
Mass to Mass
personalisation
From Information to
Insight
Zero Tolerance
Do you have clarity
of proposition?
Do you know your
Customers?
Is service promise
delivered?
Financial Challenges
Channel reporting an
irrelevance?
Understanding the
Cost to Serve
End to End KPIs and
Budgets
Is financial reporting
aligned with business
model?
Are you managing
your cost drivers ?
Are performance
measures adapted to
for omnichannel ?
Supply Chain Challenges
Speed
Synchronisation and
Agility
Information
Do you know what
slows you down? Are you organised
to work end to end?
Systems and data
adapted to (future)
needs?
Change Challenges
How much?
A Long Journey
Different Skills
Is your strategy clear,
owned and
affordable?
Do you have a plan
to get there? Have you got what
it takes?
Programme Q’s Key Themes
The right amount of stock in the
right place at the right time
An agile supply chain that
exploits scale to drive efficiency
Empowered Partners driving
operational excellence
Fulfilment beyond customers’
expectations
This is about how we order stock,
ship it from the suppliers and
move it within John Lewis
This is about how we store stock
and about the organisation of the
distribution network
This is principally about Partner
development, but also covers the
implications of the other strategic
themes on Partners
This is principally about deliveries
to Customers but also covers the
implications of the other strategic
themes on Customers
Better Systems Tracking Stock Holding
will give us a joined up view
of our stock information
including RFID, will tell us
where stock is holding stock in fewer places
makes it easier to track
Better stock accuracy will also help us to reduce stock loss and provide a better customer service!
The right amount of stock in the
right place at the right time
Distribution Centres Customer Delivery Hub
Fewer,
Larger
NDCs
Built for
Efficiency
Pooled
Branch &
Online
Stock
Specialism
in
Handling
type
Regional
optimisatio
n
Removal
of ancillary
activities
Agile
network Reduction
in scale
NDC CDH
An agile supply chain that
exploits scale to drive efficiency
Unless…
Our experience, tells us that a Partner workforce is best
or
or
We are also aiming to ‘keep it in the
Partnership’ by collaborating with Waitrose
A third Party has an
unbeatable advantage from
e.g. scale
We can’t afford to build a
new facility with our own
money
The Partnership model
doesn’t deliver the
advantage that it should
So our preference is to
insource our supply chain
operations and reduce our use
of agency staff
Empowered Partners driving
operational excellence
Fulfilment through customer delivery is all about service and efficiency
Efficiency critical to service delivery
1 man delivery remains outsourced for now, but
we will keep the business case under review
Technology improving utilisation of the fleet
New technology provides customer visibility
and control
Improved JL Fleet 2 man delivery platform for
new services Supplier direct
Fulfilment beyond customer
expectations
Investment
Systems
Process
Infrastructure
Partners
Total £369m
Systems Support
Cost Delivery
National Distribution Centres
Stock
-Scheduling
-2 man deliveries
-1 man deliveries
- 75 Distinct Services
- Magna Park automation
- Reverse Logistics
- Enterprise Resource Planning (ERP) solution from
Working in partnership
Questions