Reinventing Retail - SCL Summit · Retail John Munnelly Head of Operations . Magna Park Campus ....
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Reinventing Retail John Munnelly Head of Operations
Transcript of Reinventing Retail - SCL Summit · Retail John Munnelly Head of Operations . Magna Park Campus ....
Reinventing
Retail
John Munnelly
Head of Operations
Magna Park Campus
Case Study
The Journey Challenges Insights
10 stores
in10 years
2005
Online growth - Forecast
67 113 40 21
2017
£300m
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
£ million
2015 2016
Capability
5-Day Week
Shop Formats
On-Line Explosion
1,640
67 113 186 268 333 394 540
681
959 1,142
1,415
40 21
2017
£300m
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
£ million
2015
Online growth - Actual
Revised Strategy
Empowered
Partners driving operational
excellence
Fulfilling
Customers Fulfilment beyond
customers’
expectations
Being Agile An agile supply
chain that exploits
scale to drive
efficiency
Working Smartly The right amount of
stock in the right
place at the right
time
Key Achievements
Single Pool of Stock
Sell One Pick One
Defining
Moments…
Build Scale and Capacity
1
4 Automated Vs Manual
Modular
2011
2012
2013 2015
2014 2016
2015
July 2016 Hanging Garment Solution
1 million less parcels per year
Partner Model
Our Partners
One weeks customer
demand in 2009 was 3
hours of demand in
2016
73%
A challenging outlook
Resource
Free Returns
Space
x11
Yesterday’s
Challenge
Today’s
Challenge
29% 26%
21% 17%
14% 12%
10%
33%
37%
07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16
Channel Shift
Online as % of trade
7% 4%
06/07 05/06
X3
Delivery / Non-Delivery (%)
14%
86%
2008 2016
Delivered Non Delivered
55%
45%
Shops
63%
Online
37% Shops
50%
Online
50%
Channel split in 2016
A 50/50 business
Channel split in 2020
The UK’s Leading Omni Channel Retailer
Our Goal
Investment Shops and
On-Line
IT Investment
15%
37%
as percentage of capex
£250m Investment in Distribution
MP2
MP3
MP1
Partners
From back of house to the Front Line
Delivery Drivers Contact Centres Warehouse Partners
Key Insights
Capability
Supply Chains compete, not
companies
Tenacity
One Team, One Target
The UK’s Leading Omni
Channel Retailer
Flexibility
Expensive but fundamental
Thank You
