Myer has credited its revamped "world-class" supply chain for its profit improvement for the first half of the financial year. The
Myer has credited its revamped “world-class” supply chain for its profit improvement for the first half of the financial year.
The department store giant posted a net profit of $83 million, up 4.3 percent on previous figures.
In the company’s half-yearly report, which was released to the ASX yesterday, company executives say a 50-month turnaround scheme, with supply chain management as a major focus, is proving successful.
“Myer’s newly built supply chain is world-class on most benchmarking measures and there continue to be opportunities to make improvements to deliver greater efficiencies,” the report says.
The company reports improved shipment times out of China and a higher emphasis placed on floor-ready merchandise arriving at Myer stores across the country.
“We are benefiting from shorter lead times out of China, which are down from 42 days at acquisition to less than 24 days,” the company says.
“Solid progress has been made in a number of initiatives aimed at driving greater efficiency across our buying practices.
“In collaboration with our suppliers, we have continued to focus of the delivery of floor-ready merchandise and we have commenced work on a source-based security tagging process.”
Myer says it will continue to expand and improve its supply chain further in the next 18 months to underpin the drive for improved efficiency.
The company’s merchandising system ‘MyMerch’ is now embedded into the business and delivering better allocation of stock.
“We are seeing benefits [of MyMerch] through improved stock allocation to stores based on criteria including sales rate, demographic, better stock tracking, forecasting and climatic traiting,” Myer says.