Makro - Improving Sales Performance
Makro is one of the leading cash and carry networks in the UK and prides itself on choice, value and service to its customers. Makro is a wholesaler of a large number of food and non-food products, which are sold from 33 stores across the UK.
As part of Metro an international cash and carry group that operates around the world, Makro has immense buying power and is able to offer extremely competitive pricing across all of its 30,000 product lines. Makro Fashion Dept. has a throughput of over 4 million hanging garments and 400,000 cartons from approximately 70 different suppliers.
The Requirements
Makro were faced with a number of supply issues, which were causing issues in terms of both time and cost. Below are some of the main problems that were identified by Makro and Advanced:
- Purchase orders were being issued inconsistently resulting in picking delays.
- Loss of visibility of purchase orders in the supply chain.
- Average lead-time from pruchase order to store of 14 working days.
- Delivery booking issues at store with 70 Suppliers booking in.
- 33 P.O.D.’s and invoices required for each purchase order resulting in constant short delivery claims and resulting invoice issues.
- Inconsistent product presentation and labelling.
The Proposed Solution
Advanced were tasked with devising a solution to resolve the problems as stated above. As a result of this, Advanced proposed the following solutions to help Makro's processing and distribution requirements:
- Suppliers to warehouse their Makro contracted stocks.
- Makro to issue bulk purchase orders on same day each week.
- Supplier delivers (or Advanced collect) bulk orders to Advanced.
- Product can be in cartons for Advanced to pre-retail or hanging already pre retailed.
- Advanced to pre-retail if required.
- Advanced to confirm total quantity received to suppliers within 24 hours of receipt.
- Suppliers to raise one invoice only for the total received at Advanced.
- Advanced to GRN (Goods Received Note) onto Wholesalers stock file.
- Advanced to conduct the individual store pick allocation and labelling.
- Product barcode scanned onto vehicles.
- Advanced deliver on fixed booking slots to each store twice per week and product is scanned off vehicles.
The Result
The proposed solution met all of Makro’s needs and more.
- Lead-time from purchase order to delivery reduced by 7 working days.
- Pre-retail and distribution cost reduced by 10p per item.
- Consistent and improved product presentation.
- 99.95% store pick accuracy achieved.
- Store delivery claims eliminated totally.
- Supplier invoice queries eliminated.
- Wholesaler has total visibility of all outstanding purchase orders in the supply chain
- 99.95% stock file accuracy at stock count.
Advanced were able to deliver a solution that effectively addressed the issues that Makro and Advanced had previously highlighted, this in turn gave way for Makro to massively improve its sales performance.
Advanced continue to uphold a strong working relationship with Makro and pride itself on doing so.
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“Makro has a complex fashion supply chain. We began operations with Advanced Processing Ltd in April 04 and from the outset they proved to be innovative, flexible and reactive. We have been provided with a totally visible and accurate service which has helped to improve the efficient running of our business.”
Andrew Snowden,
Non Food Buying Director,
Makro.
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