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Operations management assists Debenhams in reducing costs
25 January 2010
Debenhams has employed an enhancement programme that has reduced its cost per unit by over ten per cent compared with 2006-07 rates.
The firm has also introduced new vehicles and trailers to reduce the number of kilometres travelled by 792,000km and its overall carbon dioxide emissions by 517 tonnes since 2006.
Under the two year scheme, streamlining, internal process reviews, continuous improvement and operational developments to expand the business and deliver year-on-year cost reductions.
"One of the other key changes in recent years has been the evolution of an advanced warehouse solution," Debenhams head of logistics Paul Leggett explained, adding that this has enabled a focus on swifter movement of high-priority product lines through the supply chain.
The operations management improvements were revealed as Debenhams signed a new warehouse and distribution contract with DHL Supply Chain that expands an existing 12-year relationship between the firms until 2012.
Individuals planning to take an APICS qualification may also be interested to note that global electronics giant Panasonic has pledged to cut its carbon emissions by 50 per cent by 2018 by enhancing its operations management processes.
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