The Reject Shop speeds supply chain growth


The Reject Shop is fast expanding its supply chain with a $44m store rollout program

The Reject Shop speeds supply chain growth
The Reject Shop speeds supply chain growth
By Sean Muir | April 23, 2013

Discount variety retailer The Reject Shop is fast expanding its supply chain, with 50 new stores expected to be opened by the end of this year.

The Reject Shop today announced to the Australian Securities Exchange (ASX) it has opened 35 new stores this financial year, with five more stores scheduled to be opened before June 30.

The company, which has 269 Australian stores, plans to eventually have more than 400 stores across Australia.

The fast-tracked store rollout is expected to cost about $44 million, with $5 million to be spent on logistics, IT and other infrastructure alone.

The Reject Shop has identified the potential consequences of not updating and maintaining company IT systems as a key risk to be managed as part of the store rollout.

The
company recently worked with Novatech Solutions on supply chain simulation and modelling for its warehouse operations to improve efficiency.

Novetech started working on the project with The Reject Shop in 2012 after discussions with the company in 2011.

"Initially there was a fair bit of time analysing operations," Novatech Solutions Project Manager Carl Oreback says.

"We looked at some aspects of congestion, different pick routes and the most optimal way of setting up the pick area, and also looking at the general flow in and out of the warehouse."

During the simulation and modelling, new efficiencies in forklift use and warehouse configuration were identified.

As
part of the retailer's plans to increase its overall store footprint,
it
has also begun additional
staff training, stock purchasing
and infrastructure implementation.

Oreback will speak about The Reject Shop’s supply chain simulation and modelling at Cebit Australia’s Supply Chain and Logistics Conference 2013 in Sydney next month.

Read the full interview with Oreback in the June issue of SupplyChain Review Magazine.

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