In a project that began in 1995, Andersen Consulting has been involved with Woolworths` Textiles division in supply chain re-engineering. The introduction of reengineered processes is being supported by the implementation of new information systems and change management throughout the supply chain.
The project is a joint effort between Andersen Consulting and Woolworths. Andersen Consulting`s Associate Partner responsible for the work, Marco Rapaglia, says: "There is a combined team to manage the project and resource it jointly. The scope of the project embraces all aspects of the supply chain from merchandise planning, buying, allocation and replenishment processes, to designing, developing and implementing of a new cross-docking distribution network."
The business case spells out the intended measurable benefits, primarily higher sales through improved availability of merchandise to the customer and a reduction in stockholding.
Both Andersen Consulting and Woolworths did extensive research through their respective networks and developed, together, world class best practices, sourced through Andersen Consulting's knowledge capital databases as well as through international retail connections. World class aspects of the solution being implemented include "cross docking", which involves the distribution centre keeping no stock, but rather suppliers delivering pre-picked merchandise by store, which is sorted for immediate distribution to stores, stock management at stores, supplier ordering supported by electronic commerce, as well as automated replenishment based on model stocks.
Though the project is far from being a complete transformation of Woolworths, it nevertheless implies a significant change in its way of operating. Given the magnitude and complexity of such change, it involves an integrated programme that pulls together a number of project teams, all of which comprise people with expertise in business process design, IT systems development, change management including training of staff and organisational changes.
"Key factors to the success of the project have been the wholehearted commitment by Woolworths at the highest level, and Woolworths` desire to be the best retailer in SA. On Andersen Consulting`s side, we have contributed global expertise in supply chain re-engineering and combined with a local capability to deliver change" says Rapaglia.
The outcome of the project will be supply chain efficiency and increased sales flowing from the improved availability of stock, which will be key to generating increased customer and shareholder value.
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