The Warehouse Group Brochure 2019

Crafting a powerful, sustainable omnichannel retail experience

02

THE WAREHOUSE GROUP: driving omnichannel retail through supply chain innovation WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

STUART IRVING

03

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

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

w w w.t he wa re ho use gro u p . co. n z

05

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

06

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

Dexion is New Zealand’s largest and most trusted systems integrator and provider of industrial storage solutions.

• Total Storage Requirements

• Safety Warehouse Systems

• Automated & Semi-Automated • Small Parts Storage Storage Solutions • Drive In and Selective Pallet Racking Solutions

• Warehouse Management Software (WMS)

Proud to be a Strategic Partner of The Warehouse Group.

Sistema Case Study

Monde Nissin Case Study

P: 0800 339 466 | E: CRAIG.APPS@DEXION.CO.NZ | W: DEXION.CO.NZ

09

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.

w w w.t he wa re ho use gro u p . co. n z

11

MONDIALE BRINGING THE WORLD TO THE WAREHOUSE GROUP MONDIALE FREIGHT SERVICES, NEW ZEALAND’S LARGEST PRIVATELY OWNED FREIGHT FORWARDER AND LEADER IN SUPPLY CHAIN MANAGEMENT Strategic partner to The Warehouse Group delivering a full suite of integrated technologies and end to end supply chain solutions.

Mondiale are industry experts with innovative, flexible proven customer centric solutions.

PROUDLY SUPPORTING THE WAREHOUSE GROUP’S DIGITAL FUTURE LEARN MORE >

Facebook facebook.com/mondiale

Internet mondiale.co.nz

CONTACT US >

Twitter twitter.com/mondialefreight

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.”

13

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

14

“ One thing our business has never lacked is good ideas” — Chris Foord, Chief Logistics Officer, The Warehouse Group

15

w w w.t he wa re ho use gro u p . co. n z

Fully-integrated container logistics solutions We are proud to be a key supply chain partner for The Warehouse Group and other forward-thinking businesses.

Will yours be next?

 09 926 8600  customer.services@nexuslogistics.nz www.nexuslogistics.nz

Waitematā Sea Port

Ports of Auckland: smart, sustainable solutions for The Warehouse Group

South Auckland Freight Hub

Waikato Freight Hub

Bay of Plenty Freight Hub

We operate a world-class sea port and a network of intermodal freight hubs which are strategically located at the centre of current and planned freight generation and consumption precincts.

Located on major road and rail routes.

Positioned to enable regional development • Rail-connected sea port and freight hubs • Low-emission freight network • Provides value-add services • End-to-end process integration • •

LEARN MORE

CONTACT US

Manawatu Freight Hub

17

“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,

and environment. Highlighting aspects 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 Engineered Packaging Solutions

Industrial

Stretch Wrap Machinery

Crop Packaging Products

Industrial Stretch Films

PVC Food Film

Bundle Shrink

Plain & Printed Films

Pallet Shrink Film

Stretch Hoods

Plain & Printed Bags

www.integratedpackaging.co.nz

09 274 4499

5 Sir William Avenue, East Tamaki, Auckland

SUSTAINABLE LOGISTICS SOLUTION LPC is proud to provide The Warehouse Group with a complete and sustainable logistics solution. From goods arriving at the port, the connection to rail and inland distribution, The Warehouse Group significantly reduces their carbon footprint.

Learn More

CONTACT US

“ 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

LOGO HERE

The Warehouse Group Store Support Office 26 The Warehouse Way Northcote, Auckland New Zealand T +649489 7000 www.thewarehousegroup.co.nz