Halfords Group Plc · LSE:HFD

Halfords — Retail Week Conference (2010)

19 slides from Halfords's conference presentation, 2010

  1. Slide 1: Meeting the CEO's Supply Chain Expectations

    David Wild Chief Executive, Halfords Group plc Meeting the CEO’s Supply Chain Expectations 1

  2. Slide 2: Supply Chain Objectives

    Supply Chain Objectives A Customer Focussed Supply Chain delivers: 1. Cost efficient product availability 2. Competitive advantage • Driving sales • Reducing cost …an integral element of well run retail companies 2

  3. Slide 3: Supply Chain Scope

    Supply Chain Scope Supply chain isn’t just the DC to store - Head office Supplier to DC DC to Store Store to Customer Feedback 3

  4. Slide 4: Agenda

    Agenda The Customer focussed Supply Chain  Halfords background  Halfords Supply Chain challenges  CEO expectations  Supply chain scope  Areas of focus  Halfords key initiatives  Impact of the web  Summary 4

  5. Slide 5: Halfords Evolution

    Halfords Evolution A company on the move  Halfords origins – small high street stores  Out of town in Early 90’s  IPO – July 2004  Dynamic independent retailer – 469 Stores + T/O £800 mill  Unique and market leading mix of Motoring and Active Leisure products  Broadening our customer base and

  6. Slide 6: Halfords SC Challenges

    Halfords SC Challenges Diverse product range with varying levels of complexity ICT Oil Tools Camping Batteries De-icer Bikes 6

  7. Slide 7: CEO Expectations

    CEO Expectations Seamless coordination working on behalf of our customers  Maximise  Shelf availability  Flexibility and responsiveness  Cost certainties  Minimise  Non value added activities  Risk  Lead times  Inventory levels Cost Effective Availability - Competitive Advantage 7

  8. Slide 8: Supply Chain Scope

    Supply Chain Scope Supply Chain Isn’t just the DC to Store - Head office Supplier to DC DC to Store Store to Customer Feedback Current Challenges Solutions Drive Flexibility Control Costs Re-engineer 8

  9. Slide 9: Areas of Focus: Head Office

    Areas of Focus 1. Head Office  Customer feedback and accurate forecasts  MOQ management  WSSI management  Inventory targeting  True end to end costs 9

  10. Slide 10: Areas of Focus: Supplier to DC

    Areas of Focus 2. Supplier to DC  Flexible sourcing  Increase direct sourcing  Reduce lead time  Supplier barrier stocks  Increase container utilisation 10

  11. Slide 11: Areas of Focus: DC to Store

    Areas of Focus 3. DC to store  Fleet best practice  Store friendly deliveries  Optimised delivery patterns and on time arrival  Internet sales direct to customer 11

  12. Slide 12: Areas of Focus: Store to Customer

    Areas of Focus 4. Store to Customer  Direct to Shelf – One touch  Product fitting and build in store  Staff rosters match peak customer flows  Internet sales based on in-store collect 12

  13. Slide 13: Halfords Key Initiatives

    Halfords Key Initiatives Making SC a strategic Business tool  Increases in direct sourcing  Improvement in forecast accuracy  Appropriate Minimum Order Quantities  Seasonal planning end to end  Shorter lead-times  Launch and clearance protocol  Leads to lower inventory  Reduced storage/demur

  14. Slide 14: Halfords Key Initiatives: Logistics Reconfiguration

    Halfords Key Initiatives Logistics Reconfiguration Current Configuration Future Configuration Coventry Redditch 1 Redditch Redditch 2 Cowley Redditch 1 – 240k sq ft Redditch –240k sq ft Redditch 2 – 140k sq ft Coventry – 320k sq ft Cowley – 300k sq ft Redditch to Coventry – 32 miles Redditch to Cowl

  15. Slide 15: A Cycle Trip

    A Cycle Trip Top spec bikes at best value through supply chain excellence  Design in collaboration with assembly and component partners  Prototype production and testing in Taiwan  Order placed with assembly partner - pre-set ETD and ETA  Container factory loaded - shipped through Halfords Asia

  16. Slide 16: Impact of the Web

    Impact of the Web Dot Com will redefine the supply chain  Direct to home – 20% of Sales  Dominated by technology  Low margin  Relies on 3rd Party Delivery  Can cause customer frustration  Reserve and Collect – 80% of Sales  Access to store Stock Files  Drives store traffic  Relies on accura

  17. Slide 17: Impact of the Web: Supply Chain Implications

    Impact of the Web 2 Supply Chain Implications  Accurate stock files  Good customer information  Reliable delivery service  Cost structures competitive  Very wide assortments  Supplier collaboration  Delivery tracking data for customers 17

  18. Slide 18: Summary

    Summary Making the Supply Chain Customer Focussed  Cost effective product availability  Strategic discipline  Collaborative and transparent  Good data critical to flow  Understand the advantages of risk vs margin  Eliminate non value costs  Engine for long term sustainable growth 18

  19. Slide 19: Questions

    Meeting the CEO’s Supply Chain Expectations Questions 19

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