Morris said: "The supply chain is the foundation of every retail business. Retailers can put distance between themselves and their peers in an increasingly competitive market by good supply chain management, which optimises product sourcing, manufacture, storage and distribution. A good supply chain will reduce operating costs and contribute to customer satisfaction. A poor one will result in a poor business.

"Not surprisingly, this area remains a major investment priority for UK retailers, albeit semantics play a part in clouding the picture. There is much talk of retailers investing in systems for business planning, buying, merchandising, warehouse management and ecommerce. At the end of the day, they all come down to one and the same thing: they are all, or should be, interdependent elements of what are today's complex supply chains.

"The best supply chain solutions have much in common with enterprise resource planning (ERP) systems and the characteristics that we associate with them. They provide a single, unified system to cover all elements, integrating processes and providing a source of and repository for common data.

"Just as a single data source makes sense for ERP, so it makes sense for the supply chain. A simple approach works best, with multiple functions sitting on top of a common infrastructure that includes common data. In this scenario, best of breed systems can integrate - rather than merely interface - to create a holistic platform that covers all facets of the supply chain.

"Multichannel retailing adds its own complexities and the need to support customer self-service puts an additional strain on the supply chain. Many retailers embarked upon online trading without getting the logistics right. Some bought stock specifically for the online channel, often outsourcing its management, which added to their problems. Lessons have now been learnt and many retailers are bringing processes back in-house, holding and managing a single stock source themselves and making it available to service all channels.

"For those outside the top tier, a unified, all-encompassing supply chain can seem out of reach and available systems over-engineered. This doesn't stop smaller retailers from aspiring to enjoy the same functionality as their larger peers, but they tend to be put off by cost of acquisition and of employing the skills to optimise and manage the system reliably.

"For these retailers, the best option is usually a packaged offering which turns a tailored, multi-faceted application into a managed service. This unites the application, skills and hosting into a single solution, within the terms of a single contract. Smaller retailers can then maintain a strategic package at an affordable cost, safe in the knowledge that it will be regularly upgraded and managed on their behalf in a structured way."

Retail Assist's portfolio includes the award-winning Merret supply chain software.
Contact:
Retail Assist
www.retail-assist.com

Paperchase lifts sales with Merret

Client Insight: Paperchase

THE CHALLENGE

With more than 100 UK outlets, including standalone stores, concessions within Borders, selected Selfridges and House of Fraser stores, plus operations within Singapore and Australia, Paperchase is the retail brand leader in design-led, innovative stationery.

ISSUES FACED

Faced with the challenges of multichannel growth, Paperchase acknowledged that it needed an integrated merchandise management system. It decided to replace existing merchandise systems with the Merret Supply Chain solution, encompassing core modules supporting central buying and merchandising and distribution centre operations.

WHY MERRET?

Merret impressed Paperchase with the depth and breadth of functionality within its integrated solution, its ability to deliver within short timescales, plus its hands-on retail experience. It was able to provide a single platform for product management, purchase order management, allocations and replenishment, warehouse management and MIS reporting.

RESULTS

Improved business performance in terms of sales turnover and profitability
Predicted system payback within 18 months
Increased functionality in all areas
Improved user productivity

Better control of the supply chain"Once Merret was up and running, we saw a material increase in sales on a like-for-like basis," explains Gary Mudie, Paperchase global chief information officer. "We attribute a 6.4% sales uplift to Merret during the financial year 2006-07," said David Bateman, Paperchase global chief financial officer.

Contact:
Paperchase
www.paperchase.co.uk
Retail Assist
www.retail-assist.com
www.merret.com