Introduction
As General Manager of the retail division, Gulf Depot, I implemented and oversaw the growth and development of the business from the first store to it becoming a multi-site operation with 40 stores across the MENA region. Gulf Depot provided a one-stop solution for all the building material needs of small to medium building contractors and retail customers in Saudi Arabia, UAE, Lebanon, Syria and Egypt. Our slogan was “all your needs under one roof” and in providing this promise, our customer retention was market-leading.
Challenges
As the network of stores grew across the five countries we operated in, logistical and operational challenges developed. The main one where: –
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Sales growth was being hindered by inventory not reaching the shops in time.
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The product portfolio was insufficient for our clients developing needs and expectations
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Our front of house retail offering and display had to develop to maximize the sales potential to the calling customers.
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Lead time from suppliers was variable and lengthening.
Supply chain management is all about the flow of goods from the point of manufacturing to the last point to reach the consumers. It is all about planning, scheduling and delivering on time the goods to meet the clients’ needs. It needs to be a fully integrated system where all parties have a clear understanding of what is required of them and the needs of the business.
These include financial, customer, internal processes, organizational capacity, demand planning and forecasting the needs for the future. You need a robust review and feedback system to ensure potential problems are mitigated in a timely manner.
How can you run a more efficient operation to maximize customer value and gain a competitive advantage as well as generating more revenue in your business to reach your goals?
Action plan
The following is the actions plan I implemented as a solution to the above:
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Implemented a minimum level on the ERP system across the entire organization both internally and externally to the stores, to be able to monitor and control the inventory flow.
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Upskilled the employees from all departments on how to adopt and implement the new system.
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Focused monitoring on our core products with a product-specific lead time calculated for each item using a bespoke forecasting framework.
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Initiated market research and customer surveys in each showroom’s location to have a better understanding of the customer need and the minimum viable product (MVP) for their local
market place. I would then focus on those adopted products to increase our product portfolio and store revenue.
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Negotiate with suppliers for better delivery times, payment terms, purchasing terms and cultivate a second supplier option for our core products to ensure supply continuity.
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Replan and merchandize the displays in each store to optimize the visual effect and customer-facing selling space.
Results
As a direct result of the action plan, the company achieved:
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Increase revenue by 30 % over two years
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Increase gross profit margin by 4%
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Reduce inventory level by 50 % which will eventually lead to a positive cash flow
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Implemented a Just in time (JIT) delivery for goods.
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Increase customer satisfaction by 50 % through our loyalty program system
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Improved delivery time to the consumers by up to 12 hours
Our consultancy aim is to make a detailed assessment and analysis of your current supply chain process in your business and come up with the best solution that will fit your objective and business goals. Each business faces unique challenges. Our success is in the planning and then the execution of a viable working plan.
