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Typically, a functional system provides reports about such topics as

Question : Typically, a functional system provides reports about such topics as : 6662

Typically, a functional system provides reports about such topics as operational efficiency, effectiveness, and productivity by extracting information from databases and processing it according to the needs of the user. In an automated distribution center includes a central warehouse for imported goods. Pallet handling is a vital part of their production and distribution processes. Pallet handling extends throughout the business process, from goods receiving to shipping of finished products or sorted deliveries. Therefore fast, smooth and efficient pallet handling is essential.

A major advance in logistics

Narrator:

In an era when no retailer can afford to stand still, changing the supply chain operations of the largest, non-food retailer in the UK is a significant project. Owned by GUS, Argos fills the number one retail slot outside grocery and is also the number retailer for toys and small electrical appliances. This represents about 150 million items a year sold through over 550 stores spread around the UK and Ireland and online. Indeed, 98 percent of the UK population now live within 10 miles of an Argos store.

Steve Melton:

In early 2001, Argos carried out a fundamental review of its supply chain and what it concluded was that unless substantial changes were made in the supply chain, it would become a constraint to the future growth of the business. And that means change not only in terms of new capabilities but also cost efficiencies. Some of the challenges the business was facing at the time arose from growth, growth in sales, for example. Since 2001, the business has grown by over 40 percent and nearly 3 and a half billion pounds of sales but also growth in terms of the number of channels we’re trying to operate. Now nearly 20 percent of our sales go direct to home. And also growth in choice, in Spring/Summer 01, we had about 8,700 lines in our catalog and now that’s nearly a massive 13,000 in the catalog that we’ve got today and in fact, you know, pilot, you know, which we’re calling our Argos Extra, which is a new store format we’ve got nearly 16,000 product lines. One of the things we’ve had to deal with is increasing competiveness in our markets. What that means is, increasingly competitive prices in many of our core areas. One good example is consumer electrical, where we as consumers have gotten used to the fact that prices of TVs, DVDs, and videos continue to fall for us. Now Argos has been responding to that by going directly to source and direct importing many of these product categories so we can pass on some of the cost savings to our customers. In May 2001, the GUS board approved an investment of 140 million pounds to transform the Argos supply chain. This program covered three main areas; the first was improvements in sourcing and the performance of our supplier base, the second was new capabilities in planning the end-to-end supply chain and a much leaner approach to moving stock through to the customer, and the third area was restructuring of the physical distribution network to provide better cost efficiencies and supply assurance.

Narrator:

Yet Argos had never embarked on a supply chain project of this scale and complexity so the company looked for outside expertise in analyzing its physical distribution network in detail and delivering an effective

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