In the pursuit of operational excellence, an international home improvement company has embarked on global supply chain enhancement to scale its business and increase profitability.

Company Profile

An international home improvement company operates approximately 1,500 stores with a dedicated team of over 80,000 colleagues. Active in eight countries across Europe, it provides home improvement products and services to both consumers and trade professionals through its stores and e-commerce channels.

CEO’s Mission

The Group CEO recognised the need for the company to grow revenue and increase profit by leveraging its scale. This involved developing new product brands and increasing direct purchases from the global manufacturing base. To support this initiative, the company invested in expanding direct sourcing teams located near the global manufacturing hubs and implementing new technology systems across its multiple retail brands and overseas sourcing offices.

Programme Director Objectives

  • Collaborate with business leaders to identify requirements, set priorities, and build a business case.
  • Execute the program, ensuring both business and IT requirements are delivered.
  • Amplify direct sourcing purchasing from £200M to £1BN, enhancing the company’s buying power.
  • Improve lead times and provide end-to-end visibility across the full supply chain.

What The Programme Director Did

Worked With Business Leadership And Partners

The Programme Director engaged with business leadership, manufacturers, and logistics partners to understand and document requirements. They successfully created a fully costed business case that received board approval, setting the stage for the global supply chain enhancement.

Executed The Programme

The Programme Director selected and owned the IT software that met the business requirements, promoting its benefits to each operating company. They led a program team that executed system implementation across the group, managing an offshore partner for system development and collaborating with internal architects and infrastructure teams. The focus was on scoping, testing, and going live with the system, followed by measuring success and implementing continuous improvement.

Global Supply Chain Enhancement

The execution of this program led to a significant increase in direct sourcing purchasing. This helped in improved lead times, and enhanced end-to-end supply chain visibility. By adopting a comprehensive and collaborative approach, the Programme Director successfully drove the global supply chain enhancement. This empowered the company to meet its strategic objectives and solidify its market position.

The Results

  • Successfully secured the investment to support growth 
  • Standardised processes and system across 13 businesses 
  • Increased direct purchasing from £200M to £1.2BN in 3 years 
  • Margins increased by 20% as a result of Direct Sourcing 
  • Reduced lead times from Asia to the EU warehouse by 25% 
  • Full visibility and control of the end-to-end supply chain 
  • Maintained customer satisfaction during the project lifecycle 
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