The Mother of All Supply Chain Successes
European Leaders blog had a recent good catch that UK retailer Mothercare credited improved supply chain performance to its overall financial success. According to European Leaders, "Mother-and-baby chain Mothercare, who last year acquired Early Learning Centre, reported a 3.4 per cent increase in comparable sales in the 13 weeks to January 11. The group's total sales were up a staggering 61 per cent ... 'We have been working hard on product, service and getting the stores right,' said Ben Gordon, its chief executive. 'The supply chain is the best it has ever been.'" It's good to see that at least one retailer across the pond is sharing in supply chain savings and success as well -- or perhaps even more -- than that of its US-based counterparts. Still, retail supply chain transformations can rapidly go from good to bad when inventory forecasts do not hold up or when supply risk manifests itself in delays or disruptions. Let's hope that "Mother" steers clear of these hurdles!
- Jason Busch
- Jason Busch
A decision to ignore the advice of analysts by refusing to outsource aspects of its suppy chain, such as packing centres and abattoirs, has helped supermarket chain Morrisons to maintain control of some vital aspects of its business. It may not be at the cutting edge of supply chain management, but it does at least show a real understanding of how committment to it can really affect a company's fortunes (the retailer has just announced what were probably the UK's most successful Christmas trading results).
Also, camera retailer Jessops (http://www.europeanleaders.net/resourcecentre/arch...) put a turnaround of fortunes down to much better stock control which allowed them to vastly reduce inventory. The company also appointed a supply chain director in December (a newly created post).
Perhaps a high-street retailer should have had such a position long ago, but then that's a different conversation entirely...