Menzies_magazine_issue_31

Quietly brilliantAre you ‘in-the-know’ about the projects transforming Menzies?

Issue 31November 2014

This issue of M is a testament to progress – and specifically, to our often unheralded progress in equipping Menzies Distribution for the future.

It’s too easy for us to think of what we do as simply ‘the day-to-day’ when in fact, how we work now would have been unrecognisable a decade ago. In our feature article, we shine a light on the crucial change projects which while often under-the-radar, are helping us develop new and better answers to our problems.

We can also see evidence of the steps Distribution has taken to make our work sustainable, in the new recycling system which is being rolled out across our network. Companies in our line of work aren’t often seen as ‘Green’, but projects like this one have helped us become something of an oddity: a transport business which has won three consecutive Carbon Trust Standards. It’s an accolade which has important benefits for our brand, making our shares more attractive to the ethical investor groups which exert a growing influence in the markets.

Finally, we can see the benefits of a progressive attitude to higher-education partnerships. Our business has benefited from process-modelling expertise which would ordinarily command a healthy price-tag, in exchange for giving some very bright people a chance to cut their teeth in the business world. It’s been a great experience, and one I’d be happy for us to seize again in future.

In each of these examples, forward-thinking has led to forward-movement for Menzies Distribution. It’s a principle which will be central to our future success.

IMS cites ‘Mixed performance’Latest News

John Menzies Plc issued an Interim Management Statement to the London Stock Exchange on 5 November, in which it provided an update on trading and senior management changes within the company.

While Menzies Distribution was described as ‘delivering in line with expectations’, the statement noted a ‘mixed performance’ in Aviation, characterised by contract wins in key areas, but losses and downturns in others.

‘Significant operational issues’ at Heathrow would impact 2014 and

2015 profits, the statement confirmed.It was also announced that, following his resignation in August, Craig Smyth would leave the company with immediate effect.

In a message to employees, Jeremy Stafford, CEO said:

“Over the coming months we will be addressing the current areas of under-performance in our business and we will be reviewing our strategic, operational and investment plans to help us maximise the opportunities which exist in the marketplace.”

Forsyth Black, Managing Director

Tote Box triumph for Menzies

A new Menzies Distribution scheme designed to keep more Totes Boxes in circulation has been praised by news-industry journal Retail Newsagent, as latest figures showed that missing box levels had fallen by 62% from their highest points.

Under the programme, retailers are sent notice of the totes they have been delivered but are yet to return. A £12 charge is applied for boxes which remain unreturned after 3 weeks, although those which are later returned trigger a refund.

“Before the Tote charging programme began, we estimated that 10% of our total box reserves were unaccounted for,” explained Jim Ross, General Manager – Central Operations.

“When so many boxes are missing, it becomes increasing difficult for us to send all supplies out properly protected. To see such a dramatic reduction in missing supplies since beginning the programme – and for the value of our work to be recognised across the industry – is very encouraging.”

The ‘Tote charging’ scheme has encouranged customers to return more boxes

Issue 31 November 2014

Red Bins turn Menzies Green

Menzies Distribution has completed the roll-out of a new recycling system, built around a range of instantly-recognisable Red Bins, which will play a major role in helping the company reach 0% landfill operation by 2017.

“At the beginning of 2010, a period in which Menzies Distribution only recycled 19% of our general waste, we began work to reduce the amount being sent to landfill,” said John Tucker, Facilities Manager.

“Four years on, we now recycle 70% of general waste – and a further 17% is converted into fuel by a process known as RDF.”

The Red Bin initiative is the next step in the company’s journey toward eliminating landfill waste altogether. While much of our focus has been on the warehouse area until now, our Red Bins bring a new approach to the office environment as well.“The process was introduced in Edinburgh Park near the end of 2010,” explained John.

“It was initially met with some resistance, as desk bins were removed and we asked all staff to take their waste directly to the recycling bins; however, people soon got used to the new system and embraced it.

“We’re confident the rest of our network will do the same, helping us eat into the remaining 13% of our waste which still ends up at landfill.”

To support the rollout a new FAQ service, Ask Emma, has been launched on the Menzies Distribution Intranet covering the dos and don’ts of recycling.

Update

The WestJet-set

Menzies Aviation has been awarded a long-term contract by WestJet, a low-cost carrier and Canada’s second-largest airline, to provideground-handling services in Toronto from 1 November 2014.

The agreement will see Aviation handle approximately 36,000 ‘turns’ per annum, the largest outsourced ground handling contract in the Canadian market.

Aviation hits 150

Menzies Aviation’s American subsidiary, Simplicity, has won its first domestic contract with US giant United Airlines - a deal which marks a milestone for the Aviation division as a whole.

When the agreement comes into force on 4 December in Denver, our new base there will become the 150th station in the company’s network; in addition, it will be the largest, handling 300+ ‘turns’ - an industry term for receiving a plane, unloading it and preparing it to depart on its next flight - every day.

Simplicity revenue has grown 1000% in a year

WestJet flies to 91 locations across the world.

New initiative puts company on target for recycling milestone

Each unit has two containers: • A Red lidded bin for

recycling• A Grey lidded bin for

general waste

The Red one is for:• Papers and magazines• Card and cardboard• Empty cans and tins• Empty plastic bottles• Clean, empty plastic items

The Grey one is for:• Used paper towels• Crisp packets and sweet

wrappers• Leftover food and drink• All polystyrene• Plastic bags and wrappers

Using the Red Bin System

Visit http://menziesintranet/recycling_qanda.htm to find out more.


In a company as large as ours, it can often seem that ‘Business as usual’ is the order of the day – we do similar things, in similar ways, over long periods of time to deliver profits. However, scratch beneath the surface and it becomes clear that a host of initiatives are ongoing at any one time, all aiming to improve the way our business works.

Progressive Thinking

Continuous Pack Business Efficiency Project

Project Eagle Network Rationalisation

WHS Simplification Customer Project

Packing Worklist 2 Technical Project

SEPA Compliance Project

Amazon New Business Project

Our HS packing system is industry-leading, but it still had limitations: titles couldn’t be added to a pack once it had begun, which meant a long wait until the next packing cycle and wasted space inside customer Tote boxes.

The Continuous Pack process sought to solve this problem. Led by the CI team and involving delegates from IT, the branch network, Central Ops and even HS themselves, the project successfully mapped out changes to the software and procedures involved in HS packing.

The new approach allows us to add new titles during the HS pack process, resulting in fewer separate packs and reduced requirement for Tote boxes. At present, the new process is being tested and improved in Preston and Maidstone, to ensure it is smooth and robust enough to merit a wider rollout across the estate.

Project Eagle was part of our ongoing effort to keep our business efficient by changing the network.

• March – SEL and Bow became a spoke of our Maidstone hub

• April – Bangor closed and customers were moved to Rhyl

• June – Scarborough closed and customers were moved to either York or Hull

• June – Dumfries closed and customers were moved to either Carlisle, Preston, Linwood or Irvine

• July - Scunthorpe closed and customers were moved to either York or Hull

• October - Ipswich, Chelmsford and Norwich became spokes of our Maidstone hub.

While a portion of these changes resulted in some redundancies, they will help ensure that our supply chain is sustainable for the future.

When receiving magazine deliveries, stores have to count each title to track deliveries and claim missing copy. This leaves a lot of room for manual error and can be time consuming for customers and for us.

Our own checks are carried out via the HS and Track & Trace systems, producing much more accurate results than counting at the stores. We approached WHS and agreed a new, simplified process: stores now only identify the title and the box it was missing from, with our systems filling in the details. The new process will reduce claims and save time for both companies. The project team are currently piloting the scheme in Swansea, with the aim of rolling out to all WHS stores by early 2015.

In recent years, we’ve worked to give extra flexibility to our packing teams by providing the ability for a Hub branch to send magazine supplies to one of its Spokes – a great function for sharing workloads if need be.

However, certain specialist products could not be shared this way: Multi-Variants (special versions of a title assigned to a particular group of customers) and titles with VATable elements (which are uncommon amongst magazines).

A specialist project team drawn from IT and Central Ops analysed the problem, and developed a new software solution. The effects of their work are now being felt in Maidstone, Preston, their associated spokes - and in the central teams which support the branches (where it’s now far easier to resolve queries). The software will be rolled out across our estate in the next few weeks.

After new guidelines were released by the European Central Bank, Menzies Distribution had to convert all customer and supplier bank account numbers and sort codes to IBAN and BIC by 1 February 2014 in order to comply with SEPA (Single Euro Payments Area).

Without the change, all EURO payments and receipts made through Direct Debits or Credit Transfers would have been rejected – and with approximately €1.5m electronic weekly receipts, it was essential to get right.

IT and Finance teams, alongside external SAP consultants, co-operated extensively to adapt our SAP system and Finance business processes.

The team had to work hard through the festive period last year, but they successfully hit the crucial 1st February deadline.

When an exciting opportunity arose to partner with Amazon, the Central Operations and MLS teams pitched and won a contract for Menzies Distribution to deliver parcels on behalf of the online giant.

The new contract not only makes use of our depot facilities, but our existing skills in delivering fast.

This move represents one of the first major steps to diversify Menzies Distribution into a logistics company who can deliver more than magazines and newspapers. Hard work from operations staff has meant that we now work with Amazon across a number of regions.

By 31 December, over 100 change projects will have been delivered across Menzies Distribution in 2014, over and above the ‘day job’ which we’re busy performing. In this feature, we profile six major examples of our Project culture – underlining how crucial the drive to make things better is to our work.

Cary Martin, Edinburgh ParkCary’s nominator praised her willingness to take on additional responsibility during a two-month period when the Business Intelligence department was seriously impacted by illness.

Asked to adopt additional duties, Cary actually exceeded her new brief: she produced analysis documents which helped improve the process and controls within the area; enhanced documentation of processes so that any future absences could be more easily covered; and produced daily summaries of progress which greatly assisted the rest of the team.

“All in all, Cary demonstrated an attitude that allowed us to manage what was a difficult situation and in my mind encapsulated a SPIRIT mentality,” read the text of her nomination.

Stepping into a challenging situation without a word of complaint, then over-performing drew great admiration from the judging panel, who were delighted to present Cary with a SPIRIT Reward.

Shaun Reynolds, BP Travel MarketingA remarkable piece of creativity – which exemplifies Shaun’s innovative approach –

was enough to earn him a place amongst this month’s SPIRIT Reward winners.

Shaun’s nominator described how he seized on the idea of taking a fundraising event which was happening in their office – a fancy-dress day – and turning it into an email sales pitch.

“IT WORKED!” they wrote enthusiastically. “Always thinking outside the box, we can learn a lot from Shaun.”

Shaun also earned praise for his approach and willingness to collaborate in order to get the best results for the company.

“Shaun regularly goes above and beyond his role to support both sales and client services, outside of his own job spec and never complains,” read a key line of his nomination.

Karen Riley, Sheffield CS CentreAgainst the background of the company’s recent decision to close the Sheffield Customer Service Centre, an emotional nomination from within the team praised Karen’s empathy and professionalism during an extremely difficult consultation period.

“She delivered a distressing message

to all the management team in such a supportive way; even when there were tears and confusion she stayed strong and was there for each and every one of us,” wrote Karen’s nominator. “She then went out on to the centre floor and delivered the news to her team bravely, and with so much empathy and compassion that I doubt many people would have been able to match her.”

The nomination went on to thank Karen for the time she took with each and every team member who wanted to discuss the situation and ask questions, putting aside her personal feelings to place her team first.

“For her to do so while the consultation period is happening shows how much of an inspiration she is and how much she values her staff,” read the closing line of the submission.

The judges believe that in putting her team first despite personal worries, giving freely and generously of her time to help them through consultation, and displaying great empathy in trying circumstances Karen has given an exemplary and inspirational performance. This SPIRIT Reward is a clear indication of how highly she is valued by the team she led with distinction.

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SPIRIT Rewards: September winners

In the Menzies Family, we’re used to working with great people -

but we don’t tell them they’re great as often as we should.

Help us put that right by telling us about one of your colleagues who deserves that

special recognition. Just fill in the form below, fold and seal it, then pop it in the

post.

Rewards

Service

First, tick the value(s) which you think

your colleague has excelled against.

• We focus on what is important to our customers

• We strive to be excellent, not just good

• We take responsibility for delivering great service

• We treat people with respect

• We are supportive and encouraging

• We are open, honest and constructive

People

Innovation• We always look for a creative and better way

• We see the opportunity, not just the risk

• We initiate and embrace change

Recognition• We always praise a job well done

• We appreciate the contribution that everyone makes

• We celebrate our success

Inspiration• We encourage each other to excel

• We display our passion and positivity

• We lead by example

Teamwork• We are committed to working together to succeed

• We play to everyone’s strengths

• We work towards a common goal

Next, tell us what your colleague has

done that makes you want to nominate

them. What makes it - and them -

special?

(Tell us who they are, what they do and where they work.)I’m nominating:

Please also tell us your name:

(Your nomination is anonymous, but we might need to get in touch - for instance if your form is damaged)

Spirit rewards nomination form with Postage.indd 1

09/01/2014 14:27:50

Image: Karen Riley was highly praised by her team


A partnership between Menzies Distribution and The University of Strathclyde which brought student expertise into our business has been hailed as a success by managers from our branch network.

Grant Keogh, Distribution Centre Manager at Linwood, described the results of a project carried out by a student team as ‘very insightful and beneficial’ and is keen to implement the proposals they presented.

The project emerged from a realisation by Naveen Kumar, Continuous Improvement Engineer, that an opportunity existed to involve postgraduate specialists in our work to analyse and improve the branch packing process.

Naveen, who is nearing the end of a two and a half year secondment from the university himself, concluded that working with students would not only provide extra resource but a fresh perspective. After winning support for the idea within the business, he set about selecting the right candidates, ultimately recruiting Rodriques JohnPeter and Pulkit Vijayvargiya.

“I chose Rodriques and Pulkit for their experience of working in manufacturing environments,” explained Naveen, “and for their awareness of Lean Thinking and Six Sigma techniques, which are highly

sought-after skill sets designed to develop business process.”

The CI team set Rodriques and Pulkit to work on an 11 week initiative at Linwood branch, with Naveen overseeing the project. They immersed themselves in day-to-day processes in order to fully understand how everything worked, and the challenges that can impact performance. After two weeks the pair were ready to present their findings and put together several solutions to some of the performance issues that they had identified.

“By using our training to assess the packing performance, we were able to identify some small changes to processes that could significantly improve the packing process if rolled out across the business,” Rodriques said.

Pulkit continued: “For example, after monitoring the movements of staff during a night pack, we identified that simply changing the layout of the warehouse cages and packing areas could save time and make the packing process more efficient.”

“As well as expertise, the students had the time to dedicate to the project that we don’t necessarily have here at the branch,” Grant Keogh explained.

“This made the project doubly beneficial. We’re looking forward to seeing their ideas put into practice.”

Due to the success of the partnership with The University of Strathclyde, the CI team are keen maintain the relationship for future ‘Knowledge Transfer’ programmes, and have even rekindled a previous relationship with Heriot Watt University in the last month when thirty students from the Marketing Logistics course visited Newbridge branch to see how we do things.

“Developing relationships with universities can be hugely beneficial for the business,” said Naveen.

“There are always opportunities to bring students in to work on projects that we might not be able to dedicate the time to or could do with that additional insight or expertise. With clearly defined objectives and by identifying the right students with the right skill sets, this can be done across any business area from operations, IT, finance to marketing - just to name a few.”

If you are working on a project that you think could benefit from student support, contact Naveen Kumar at [email protected] or Jim Ross at [email protected] to discuss your project objectives.

University Challenge

Image (from left to right): Pulkit Vijayvargiya, Jim Ross, Naveen Kumar and Rodriques JohnPeter

Competition Community NewsCongratulations on 40 years!On 4th November Sandra Watson, Material Master Assistant at Edinburgh Park, celebrated her 40 year anniversary with Menzies Distribution.

Sandra’s career with Menzies began in 1974 at our old Roseburn offices as a Purchase Ledger Clerk; her Mum also worked in the canteen. In the early 90s Sandra transferred to South Gyle branch followed by Newbridge branch. In 2000, Jacqui Anderson asked Sandra to join her team at Edinburgh Park where she has been working since, expanding her knowledge to cover the material master role.

Page 8

Menzies Distribution,2 Lochside Avenue, Edinburgh Park,Edinburgh, EH12 9DJ

Newbridge Branch

Tel.: 0131 467 8070 Fax: 0131 469 4797

Sharewatch

340p

Front Cover New Partnership

This month Menzies Distribution and RetailerSaver.com launched their new partnership.

The agreement sees Menzies Distribution manage the nationwide warehousing and fulfilment of products and stock for ReatailerSaver.com, as well as the delivery of these products to stores across the country.

Market Cap: £208.41m 12 month high: 838.50p 12 month low: 312.00p

For your chance to win £50 worth of gift vouchers, tell us: ‘By December 31st, how many projects will have been delivered across Menizes Distribution in 2014?’

Send your answers before the next issue to [email protected]; or write to us at:

Communications Team Menzies Distribution2 Lochside AvenueEdinburgh ParkEdinburgh, EH12 9DJ

The winner will be drawn at random from all the correct answers we receive.

Win £50 gift voucher

Last month’s winner!We’re pleased to announce that Anita Childerson at Leeds Branch, has won our competition and will receive a £50 Love2Shop voucher.

Anita’s winning answer was ‘July’, to the question: ‘Which month did Sheffield Branch start operating cross-docking?’

Well done Anita, you are our £50 voucher winner!

7th November 2014

Jacqui, Material Master Manager, said, “Through her experience, Sandra has built up a vast knowledge of Menzies Distribution as well as being conscientious, caring and hardworking - she’s an absolute pleasure to work with. We’d like to say a huge congratulations on this milestone to ‘one of a kind’.”

‘Silver stars’ welcomed to 25 Club

The class of 2014 was inducted to Menzies Distribution’s 25 Club this month with each new member being presented with a watch to commemorate the achievement. Those able to attend were treated to an exclusive lunch at Edinburgh’s Kyloe restaurant. Congratulations to all who have reached the milestone!

James BrownDavid ButlerElizabeth CarlinDavid CattonRoy DixonKevin EllisonRobert Ferguson

Johnathan FosterAndrew HowieMarty KellyJohn KennedyNeil KerrRonald LewisMarguerite McAuley

AnthonyMcDonaldRobert McGowanAnthony MeadeGino NevianiRichard ParkerJames PatersonRichard Sayers

Andrew SmellieEmma StanbridgeAlan TurnbullJames VickersNicola WattEuan WhiteheadDonald Wilson

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