The FINANCIAL — Moscow – Accenture has successfully completed a large-scale supply chain and inventory management transformation project for the Russian operations of Leroy Merlin, the leading do-it-yourself (DIY) retailer in Europe, according to Accenture, a global management consulting, technology services and outsourcing company.
Accenture designed a solution that aims to improve the efficiency of Leroy Merlin’s Russian enterprise logistics system by creating greater transparency of supplies and more accurate and reliable calculation of inventory costs based on management accounting and International Financial Reporting Standards (IFRS). The solution will help Leroy Merlin eliminate discrepancies in inventory valuation and automate a variety of manual processes used to manage its supply chain operations across three of its distribution centres, serving 28 stores in 16 Russian cities and offering a combined product catalogue in excess of 35,000 items.
“Our primary challenge involved connecting the components of our demand and supply planning and fulfilment operations to gain a clearer view of product availability and to develop a more reliable, time-to-shelf system that is speedy and cost effective, improving customer service,” said Bernard Barfety, Operations and IT Director at Leroy Merlin Russia. “To achieve our objectives, we needed a solution that would enable us to capture and analyse dynamic demand signals across multiple channels, supply networks and fulfilment locations, and Accenture, drawing on its extensive experience, has helped us navigate complex IT, business processes and supply chain transformation considerations to develop our new system,” he added.
Started in September 2013, the new system is delivering greater consistency and efficiency to several key areas of the company’s logistics process through better analysis and optimization of product cost components and inventory optimization. It enables more automation and provides a stronger infrastructure to support the expansion of Leroy Merlin’s Russian business to 80 stores in the upcoming five years, according to Accenture.
“The implementation of the new system has made our supply chain transparent and manageable. It has also provided us with the tools to monitor and optimize the cost of our goods, enabling us to further develop and execute on our Every Day Low Price (EDLP) strategy,” said Petr Asratyan, Director of IT modernisation at Leroy Merlin Russia.
“The newly deployed system is an important decision-support mechanism for Leroy Merlin Russia, providing, visibility, flexibility, and responsiveness throughout the supply chain planning process,” said Mikhail Pershin, Retail Lead for Accenture in Russia. “We are proud to have delivered a system that gives Leroy Merlin Russia a more seamless approach to inventory management and enables them to provide a better service to their customers,” he added.
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