PA Consulting Group has helped retailers address issues across the full range of supply chain management, from purchasing and supplier management, through distribution and logistics to store merchandising and operations. Examples of our work are summarized below.
Track record
Prestige foodhall
Supply chain and store operations review
Current foodhall operations were inefficient and the supply chain was not suited to meet the future needs of the group. PA was asked to review the food supply chain, and to assess how best it should be structured in future, to meet the changed requirements. PA reviewed the in-store processes, and analyzed detailed data on products, suppliers, costs and store vehicle traffic. We delivered a comprehensive analysis of the potential for improvement, with a prioritized list of projects to achieve the future supply chain required.
European retailer
Purchasing and logistics improvement
PA developed a purchasing strategy, and redesigned purchasing processes, to capitalize on the group's purchasing power. We also streamlined logistics processes to ensure high service levels and low cost in the distribution system. This also entailed the re-design of processes to ensure effective and efficient operation of each chain within the group.The benefits of our work included achieving an aligned organization, with clearer roles and responsibilities. The overall product line structure was changed to fit customer needs. A new purchasing strategy was designed and implemented, resulting in savings of £40 million.
UK DIY retailer
Improving logistics out-sourcing
This retailer has outsourced the majority of its logistics operations to a third party contractor, and needed the contractor's current performance to be evaluated independently. The PA team prepared a model of the current situation, recommended improvement projects, conducted internal benchmarking and compared current performance to best practice. This resulted in an assessment of total improvement potential for the four sites, moving from the current situation to best practice in stages. The team also recommended how the outsourcing contract could be changed to enable an effective partnership.
Prestige UK department store group
Support for logistics out-sourcing decision
This group planned to out-source its warehousing and distribution, and needed support on the final stages of this process. PA recommended which of the two short-listed companies to select, confirmed the validity of the decision to out-source and of the tender process, and supported final negotiations with the selected contractor. A key part of our work was to build a labor requirements model, which allowed rational discussion and agreement of the resources required. This enabled agreement with the contractor on staff numbers lower than those initially proposed by them, so reducing the contract cost significantly.
