Crafting a powerful, sustainable omnichannel retail experience
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THE WAREHOUSE GROUP: driving omnichannel retail through supply chain innovation WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
STUART IRVING
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T H E WA R E H O U S E G R O U P
Chris Foord, Chief Logistics Officer at The Warehouse Group, discusses the supply chain and logistics strategies that are driving the company’s development into a true omnichannel retailer
F
ounded by Sir Stephen Tindall in 1982, The Warehouse Group (TWG) has become New Zealand’s largest non-food retailer. Across
its laudable brand portfolio – comprised of The Warehouse, Noel Leeming, Warehouse Stationery, Torpedo7 and 1-Day – the Group operates over 250 04
stores throughout New Zealand while working towards creating a true omnichannel retail experience. Chris Foord, Chief Logistics Officer at the company, is overseeing the ongoing evolution of its logistics and fulfilment functions; a role whose industry-wide importance continues to become a recognised core element of any successful modern business. “Like many organisations, TWG has realised the competitive advantage of supply chain, from sourcing and distribution through to the store and the customer,” says Foord. “Rather than simply being a back-of-house transactional function, we are now seen as an efficient and effective supply chain that enables a competitive advantage in the wider organisation’s strategy.” Foord notes that this centralisation of the supply chain function within the overarching business strategy will become more entrenched as
ANZ$3bn Approximate revenue
1982
Year founded
12,000
Approximate number of employees
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T H E WA R E H O U S E G R O U P
“ Where there was a buffer between distribution and the customer via the in-store experience, there’s now a direct physical handover” — Chris Foord, Chief Logistics Officer, The Warehouse Group
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CLICK TO WATCH : ‘WELCOME TO RETAIL CAREERS AT THE WAREHOUSE GROUP’ 07 omnichannel retail continues to become
expanded its data science team to
an expectation in the industry. “Where
better leverage the latent insights of its
there used to be a buffer between
data sets, and already has a history of
logistics or distribution and the customer
implementing automation technologies
via the in-store experience, there’s now
that will continue through the worldwide
a very direct physical handover in terms
shift to Industry 4.0. “Many years ago,
of the delivery connection and interaction
when we built one of our larger distribu-
as we fulfil orders.”
tion centres, we included automation
The changing needs and expectations
within it that was then viewed as state-
of the customer, centred around speed,
of-the-art,” Foord explains. “That stood
convenience, choice and the infamous
us in great stead for a long time, and
last mile, have inspired a vast range of
we’re now looking at ways to make that
implemented solutions that drive in-
automation smarter to meet both our and
creased efficiency, sustainability and
the customer’s growing needs.” TWG is
customer satisfaction. TWG has recently
currently in the process of introducing w w w.t he wa re ho use gro u p . co. n z
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its new warehouse management system,
decision-making based on real-time
developed by Manhattan Associates,
information and data, using interweaving
that is set to overhaul the efficiency of
capabilities to assign tasks based on the
its warehouse operations. “It’s going to
most productive and efficient route.”
significantly improve our distribution
Foord summarises the effect of these
and logistics centre capability, enabling
elements in the replacement of restrictive
efficiencies that will save north of
manual tasks with automated technol-
NZ$5mn each year,” enthuses Foord.
ogies. Robotic process automation (RPA)
“The new system will have three key
has been used to automate a range of
benefits for our operations: allowing us
manual tasks on the finance side, and
to have greater visibility of all of our
machine learning has been deployed to
different departments and tasks in the
regularly clean the firm’s master data to
operation; enabling dynamic organisation
maximise its value for generating insights.
of tasks and orders; and facilitating
“It’s freed up our team to do more w w w.t he wa re ho use gro u p . co. n z
T H E WA R E H O U S E G R O U P
“ The owner’s mindset epitomises the transformation journey that we’re on” 10
— Chris Foord, Chief Logistics Officer, The Warehouse Group
value-added activity, and ensures that we
clarity of objectives, are offered regular
are more targeted and effective with our
feedback and coaching, and are
operations,” says Foord.
exposed to development opportunities
This mentality of harnessing technol-
to stretch their skills and grow.” TWG’s
ogy to benefit teams and drive efficien-
commitment to its people is matched by
cy is central to TWG’s people-led
its commitment to the environment, with
business ethos. “When you’re going
a sustainability strategy aimed at
through a transformation, you have to
reducing the company’s impact on the
drive a cultural shift as well,” says Foord.
environment and encouraging sustain-
“Our focus throughout has been to get
able behaviour in team members,
the culture right and thereby enable the
customers and suppliers. “Sustainability
transformational outcome. We have
has become a huge focus for the
been developing a performance culture
industry, and we are extremely proud to
where we ensure that people have
have recently announced that we are
carbon neutral,” says Foord. In February 2019, TWG achieved the internationallyrecognised carboNZero certification, becoming the first large company in New Zealand and the third major retailer in the world to do so. “While we’re now carbon neutral, which is amazing, we’re not resting on our laurels. We’re continuing to implement more sustainable methods of shipping and domestic transportation. For example, maximising our container loads and, where feasible, partnering with shipping lines who have the more efficient vessels in this space.” Serving as an umbrella for each of
E XE CU T I VE PRO FI LE
Chris Foord Chris Foord leads all aspects of Logistics and Fulfilment across The Warehouse Group, including The Warehouse, Warehouse Stationery, Torpedo 7 and Noel Leeming brands. Chris is a supply chain professional with strong international experience across the value chain in multinational retail, FMCG and commodity organisations. Chris joined The Group from Fonterra Co-operative Group Ltd, where he was the General Manager of Global Supply Chain Development.Prior to Fonterra, Chris played key roles in Logistics, planning, transportation and tech re-platforming at Sainsbury’s and Marks & Spencer UK. Chris has a Bachelor of Science (with Honours) from University of Durham UK.
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these endeavours and successes, TWG has established a strategic sustainability plan to drive it towards the goal of being New Zealand’s most sustainable retailer. The plan is based on three key pillars: product, planet and people. “From a supply chain and logistics point of view, we’re primarily focused on the products stream,” explains Foord. “For example, efficiencies in transportation and delivery as well as packaging. It’s about finding that balance between protecting the product from damage and meeting customer expectations whilst reducing unnecessary waste and/or plastic.”
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Foord adds that, through its online fulfilment operations, TWG is currently transitioning away from plastic fillers
highlight. “It’s all about our people,” he
and protection to 100% recyclable, paper-
says. “The transformation has enabled
based products. TWG is also paying
and celebrated the owner’s mindset:
consistent attention to the development
people treating the business as if it’s
of electric vehicles (EVs), building on the
their own, looking after every dollar,
fact that the majority of vehicles in its
every cent, to ensure that we are creating
customer delivery fleet are hybrid. The
value for both the organisation and our
firm’s light vehicle fleet is incrementally
customers.” He adds that the process
shifting over to full-electric alternatives,
has also provided employees with the
with 30% of its vehicles in this class set
tools to develop and execute ideas at
to be replaced with EVs this year.
pace. “One thing our business has never
Of the key successes of the transfor-
lacked is good ideas,” says Foord, off-
mation, Foord doesn’t hesitate to
ering an example of the internal inno-
earmark the firm’s culture as a particular
vations that this culture has enabled. w w w.t he wa re ho use gro u p . co. n z
T H E WA R E H O U S E G R O U P
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“ One thing our business has never lacked is good ideas” — Chris Foord, Chief Logistics Officer, The Warehouse Group
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“One of our team members saw an
spurred by a culture that encourages its
opportunity to improve our fulfilment
employees to not only think outside the
centre packing station. As packing
box but also take ownership of TWG’s
materials were stored in a number of dif-
successes and challenges. “The owner’s
ferent areas, processing an order was
mindset epitomises the transformation
time-consuming and inefficient. She
journey that we’re on,” says Foord.
designed a new packing station that
Championing the successes of its
keeps all the materials together, and her
digital and supply chain transformation
partner constructed a demo to test it
in a holistic, Group-wide sense, TWG’s
out. Through that, we’ve ended up with
2018 annual report featured elements
an incredibly ergonomically-designed
of integrated reporting to highlight the
packing station that has yielded an 8%
progress of its strategy as well as its
increase in the number of orders we
commitment to its people, community
can process.” This type of innovation,
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“ We’re now looking at ways to make our automation smarter to meet both our and the customer’s growing needs” — Chris Foord, Chief Logistics Officer, The Warehouse Group
19 beyond the financial details typical of
management system and then to
an annual report, TWG zeros in on the
optimise that across our network,” he
finer points of its transformation,
says. “As with many global retailers,
highlighting innovation, sustainability,
we’re moving towards a seamless
diversity, talent development and its
omnichannel experience, but we’re not
work within New Zealand communities.
quite there yet,” he says. “Our goal is to
In sum, its new reporting strategy
be able to serve our customers in
focuses on the factors that exemplify
whatever way they want, irrespective of
its people-led focus and ethos. Looking
how they choose to engage with us. It’s
forward, Foord sees nothing but a con-
about us being able to offer a suite of
tinuation of the bold and exciting strategy
channels that can sustainably deliver
that is leading the Group to success
on that promise.”
and the realisation of a next generation retail experience for its customers. “The key next step for the Logistics function is to embed the new warehouse w w w.t he wa re ho use gro u p . co. n z
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The Warehouse Group Store Support Office 26 The Warehouse Way Northcote, Auckland New Zealand T +649489 7000 www.thewarehousegroup.co.nz