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New Distribution Hub Strengthens Travis Perkins plc Supply Chain Written by: Matthew Staff Produced by: Craig Daniels
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TRAVIS PERKINS
The UK-based builders’ merchant is updating its physical supply chain to ensure the ‘Easy Supply of Product’ across all of its businesses
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ravis Perkins plc has seen strong and continued growth over recent years, with £5.6 billion of revenue generated in 2014 alone. The Group has almost doubled turnover in the past five years and is forecasting a similar increase in revenue over the course of the next decade. 2015 will see Travis Perkins plc concentrate on its appeal to customers, along with expanding its branch and service network. Built up of builders’ merchants and retail businesses, a pivotal component of the Group’s rolling three and five year targets revolves around the supply chain, and Steve Smart, the Director of
Travis Perkins plc’s new Omega Centre at Warrington
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S U P P LY C H A I N
Distribution Development, is adamant that this strategy will continue to reap rewards moving forward. “My role is to look at what we do today and determine how to do it more efficiently along with predicting what the business will require of us in three and five years’ time and deciding what we need to put in place now to make sure we are in a position to be able to deliver that,” he said. “In the future, I would like to report that the things we’ve mapped out on our current five year plan have been delivered and were the appropriate actions to support the needs of both our customers and our businesses.” Easy Supply of Product Travis Perkins plc’s supply chain strategy is focused around the motto ‘Easy Supply of Product’ (ESP) and designed to improve both customer experience and the Group’s branch and service network. The Group is keenly aware of how important it is for tradesmen to get the products they want, when they want them, but recognises that this can be difficult to achieve across its fragmented market and multiple businesses. Travis Perkins plc showcases some of the most renowned players in the UK’s building merchant and retail industry, including the likes of City Plumbing Supplies (CPS), Plumbing Trade Supplies (PTS), Keyline Building Materials, CCF, Solfex
Key Personnel
Steve Smart Director of Distribution Development Steve has been Director of Distribution Development at Travis Perkins plc since 2012 and is responsible for the development and implementation of the Group Distribution Five Year Strategy. He first joined Travis Perkins plc in 2010, bringing his 20+ years of experience in supply chain management and logistics to the role of Interim Logistics Development Manager. Previously, Steve worked as a consultant supporting Spicers and Proteus PM Ltd having previously held senior positions at MFI, where he managed the Logistic operations, integrating key distribution operations without any detrimental impact on service, operation or HR performances. In his spare time, Steve enjoys playing golf, spending time with his family and working on his own DIY projects.
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C O M PA N Y N A M E
Putting you in control of your business communications
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hen designing any new telephony solution, whether a leading edge picocell rollout, Lync integration or multi-site VoIP deployment clearly choosing the right technology is key. However, Arrow measures success by meeting the expectations of the people, from business owners and senior managers through to end users.
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ensure we meet those expectations. If you are still developing your telecoms strategy, we would be happy to carry out a full review of your current estate and offer advice and support on the solutions which will optimise telephony and IT services for your operations today but also with an eye on the future.
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TRAVIS PERKINS
S U P P LY C H A I N
and Travis Perkins itself in the former sector, and Wickes, Toolstation and Tile Giant in the latter, and the ESP supply chain offers support to all of its businesses. Smart explained: “Travis Perkins plc’s future plans are focused on the self-improvement of our business; aiming to encourage branch network growth, improve in-branch ranges and implement a multi-channel ordering system. Our ESP supply chain is an essential component in improving the Travis Perkins plc experience for both staff and customers, providing quick and easily access to stock for all branches” “Updates to our physical distribution sites are a key factor in the creation of our ESP supply chain and our self-improvement of the business as a whole,” Smart continued. “We have a number
SUPPLIER PROFILE
Travis Perkins showcases many well known businesses in the industry
ARROW BUSINESS COMMUNICATIONS
Arrow Business Communications has been providing innovative communication solutions to business users in the UK for over 19 years. A strong focus on bespoke propositions means thatItaque Arrowconsed offers aquam range of products and value added services individually tailored to aspero et modite customers’ specific requirements. Our mobile, fixed and data solutions have a proven track record of reducing costs, increasing productivity and improving both communications and work flow within our customers’ organisations. Website: www.arrowcommunications.co.uk
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TRAVIS PERKINS
Inside Travis Perkins Plc’s new Omega Centre at Warrington
‘Dedicated to CPS, Travis Perkins, PTS, Keyline, CCF and Benchmarx, Omega serves 450 branches, and stocks 19,000 SKUs.’
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of new sites that we are incorporating into our physical supply chain, which will improve all branch services in place today, as well as allowing space for future network and service growth, such as the implementation of a multichannel ordering system.” Hub of activity Travis Perkins plc’s primary distribution hub, comprising four distribution centres, on Brackmills Industrial Estate in Northamptonshire covers a multitude of its businesses, and the introduction of a replica in Warrington – known as the Omega Centre and a hub for light side stock - along with additional Range Centres around the
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Arrow Business Communications
country to supply heavy side stock, is part of the ESP ethos, enhancing the flexibility and time-tomarket of the supply chain significantly. The new Warrington Omega Centre is a focal point of Travis Perkins plc’s current five year plan. Dedicated to CPS, Travis Perkins, PTS, Keyline, CCF and Benchmarx, Omega serves 450 branches, and stocks 19,000 SKUs. Smart explained the process behind opening Omega: “In 2010, we took a look at the business as it stood and how we could improve – with a particular focus on the ‘Easy Supply of Product’. We were still in a recessionary minded environment so to go and ask the business to invest tens of millions into the physical supply chain structure was an
Arrow specialises in providing bespoke IT and telephony services for businesses in the UK, helping organisations like Travis Perkins to shape their telecom strategies as they transition to newer technology platforms. Arrow’s relationship with Travis Perkins spans 11 years and has developed into a close working partnership. Arrow not only supports Travis Perkins’ telephony infrastructure across all of their sites, but are currently rolling out a unique in-store headset solution which will enhance overall customer experience as well as deliver productivity savings of 13 – 14 man days in store per week.
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C O M PA N Y N A M E
Countynet ltd is a Midlands based company with a national presence. We provide installation and support services for voice, data and security for SMEs & corporate businesses across the UK. We are a supplier with a broad range of services offered to enhance the efficiency of our clients network. Understanding the technical effectiveness of a commercial environment is our strength. Recognising the right IT tool for the job can be a challenge, so a brief consultation at the beginning helps aid
decision making, because one size really doesn’t fit all! We strive to make your network an efficient machine that integrates seamlessly with your business. We recognise that when your business grows, so will ours, a fact we never forget when it comes to customer service. We understand our client’s network is only as good as the cable it runs on. Therefore getting the first network element right is crucial.
Tel: 08453 900 922 info@county-net.com www.county-net.com
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ask, but it was about aligning the physical supply chain with the Group’s aim to implement ESP across all businesses and provide mulitichannel ordering options for customers. .” In addition to Omega, Travis Perkins plc is opening four ‘Range Centres’ across the country, to ensure every branch of each of its businesses can offer a wider range of stock, along with next day delivery on all items. The Cardiff Range Centre opened in December 2014 – it covers 80,000 square feet and supplies branches across the Southwest, joining the Warrington Range Centre which opened early 2014 . Two new Range Centres are also set to open in Tilbury and Coventry, in July 2015 and 2016 respectively. These supply chain developments will allow all Travis Perkins plc businesses to offer a
SUPPLIER PROFILE
80,000ft
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size of the cardiff range centre
COUNTY NET
Countynet Ltd has been providing infrastructure and support service for Travis Perkins for 11 years. As a main contractor at Travis Perkins Omega Park DC project our responsibility is to provide infrastructure for: network points, wifi access points, CCTV, and door access, all connected via fibre optic OM4 backbone. Our skill set reaches far beyond providing cabling services. We will deliver a fully connected, functioning and warranted LAN underpinned by a host of vendors. Website: www.county-net.com
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C O M PA N Y N A M E
Team members at Travis Perkins plc’s new Omega Centre
“Omega and the new Range Centres are designed to be able to allow us to support our branches better” – Steve Smart, Director of Distribution Development, Travis Perkins plc
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wider selection of stock and next day delivery on all items – all part of the ESP ethos. Smart explains: “Omega and the new Range Centres are designed to be able to allow us to support our branches better and ensure our customers can get the products they need easily, while they will also massively reduce our carbon footprint.” Planning ahead The ongoing rolling five year plan of Travis Perkins plc not only aligns with strategies and resources at hand today but, more importantly, lines up with predictions of what the Group’s strategies and
SECTOR
resources will be in the intervening years. “One aspect of our plans for the ESP supply chain involves developing a multichannel ordering system for our customers, utilising initiatives like ‘Click and Collect’” Smart explained. “We have to manage the relationships with the builders we have supplied for many years, whilst ensuring that we’re in a position to deliver to the builder who is new to the trade and may have a different view on what his or her requirements are. Our ESP supply chain is paramount to this, ensuring all of customers can access the products they want quickly and easily. ”
Worker at Travis Perkins plc Omega Centre
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Members of Travis Perkin plc
“We have a solid plan on how we will enable the requirements of the business moving forward by investing and working closely with our internal and external IT providers.” – Steve Smart 14
To emphasise the company’s commitment to continuous self-improvement, Travis Perkins plc has also invested in updating its IT, introducing agile involvement methodology, as well as becoming a Google-based business and investing with JDA on a group planning and replenishment system to update its inventory systems. Smart added: “We have a solid plan on how we will enable the requirements of the business moving forward by investing and working closely with our internal and external IT providers. Agile involvement means we are able to deliver benefits far quicker and far more aligned to the business needs than we’ve ever been able to before.” For example, Arrow, one of Travis Perkins plc’s
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external providers, specialises in providing bespoke IT and telephony services for businesses in the UK, helping organisations to shape their telecom strategies as they transition to newer technology platforms. Arrow’s relationship with Travis Perkins plc spans 11 years and has developed into a close working partnership. Arrow not only supports Travis Perkins plc’s telephony infrastructure across all of their sites, but are currently rolling out a unique in-store headset solution which will enhance overall customer experience as well as deliver productivity savings of 13 – 14 man days in store per week. Smart concludes that a successful supply chain strategy depends on “the ‘Easy Supply of Product’ and planning ahead to ensure this can be offered by all individual business units.” He continued, “We have a general merchants division, which is different to the retail division, which is different to the plumbing and heating division for example. But ultimately, we need to ensure they all have quick and easy access to products through our supply chain and can pass the time and cost savings onto their customers. It comes down to understanding and working with the different business units, listening to what they and their customers are asking for, having an interpretation of what that might look like in five years’ time and evaluating the investment required to enable us to deliver that.”
Company Information INDUSTRY
Supply Chain HEADQUARTERS
Northampton FOUNDED
Founded over 200 years ago EMPLOYEES
26,000 REVENUE
£5.6 Billion PRODUCTS/ SERVICES
Building merchants
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Lodge Way House, Lodge Way Harlestone Road Northampton Northamptonshire, UK NN5 7UG
+44 (0) 1604 752424 +44 (0) 1604 758718 externalcommunications@travisperkins.co.uk www.travisperkins.co.uk