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Picking winners Major retail chain Woolworths has improved its distribution efficiency by combining change management and advanced technology. |
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The drive to improve the efficiency of supply chain operations is a high priority for every high street retail chain. Woolworths’ recent transformation of operations at the Swindon, UK, distribution centre, recognised by the Institute of Logistics and Transport award for storage and handling of materials and the IHSE project management award, provides food for thought for anyone with ambitions in this area. At the heart of the improvements made at Woolworths’ distribution centre is a philosophy of culture change. Much of the success of a major recent warehouse improvement project, Stratos, stems not merely from the levels of automation installed or the software used, but from the way in which the company has achieved buy-in from staff, consultants and suppliers alike. As John Carroll, the head of infrastructure development for Woolworths, explains: “The realisation that a project of this nature involves participation from a variety of interested parties is critical to its success.” Five distribution centres are used to supply 60,000 product lines to Woolworths’ stores around the country. The company’s own warehouses at Swindon and Castleton are supplemented by a third-party operation – also in Castleton – which handles hanging garments. Two further centres are used for seasonal and promotional ranges to cope with peak demand. |
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International Consultants' Guide September 2001
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Collaborative Supply Chain