Denis Deumier, Supply chain Director at Intersport France
Published in Logistiques Magazine, N° 309 on 2016-05-01
Logistics Magazine: Intersport France has been growing for several years. Does the supply chain manage to follow?
Denis Deumier : It is initially necessary to point out that Intersport France is a cooperative of merchants, not a built-in group. Supply chain Direction, which includes logistics, is intended to optimize the inventory management among our members, who remain free in their choices. With the creation of this direction, there are two and a half years, we went from a flow-driven pushed logic, regardless of the sales level and the weather, with a just-in-time shipping logic and minimum replenishment in order to optimize the cash of the members. But we couldn't get through this with our information system of the time, Movex, limited in its computing power. So we launched SAP project (HANA solution), for an investment ranging between 10 to 12 million euros. The first stage, completed in September 2015, helped to close the old system and set up the new one with the assistance of the Integrator PM, key to the success of this sensitive passage, because it includes the integration of the stores of which a part may have old information systems.
L. M. : How did you manage to convince members who had experienced disruption during SAP installation at Adidas or Quiksilver, their suppliers?
D. D.: We had a good father-of-the-family approach. We have subdivided the project, with first implementing a close version to the standard that we're now evolving.
L. M.: What does this new system change for shops and the Intersport central?
D. D. : The calculation of the automatic replenishment of stores does not take more than 12 minutes against a whole night before. The plant may not impose automatic replenishment at the store, but it proposes it to him. And then, all of our products are not in automatic replenishment mode. We have rollout our new system with priority on our trunk of common assortment (swimming and running), as well as permanent products. We did a pilot on the cycle, because there are few references and we have our own brands. So we went from six months of stock-on-hand to two months, and we are heading for 40 days. At the same time, turnover has increased by 20%, much more than market. We have no indicator for the rate of rupture/availability ratio of the products in store, but we hope to set up it very quickly.
L. M.: How do you operate in warehouse to accompany this new cockpit?
D. D. : We made the choice to keep a warehouse at Saint-Vulbas, close to Lyon. But at the beginning of 2017, we will open a second one very close by, to have the necessary ability to continue the strong growth of the Group and the increase in centralized flows, which must increase from 40 to 65% within 2-3 years for direct deliveries in stores insured by our suppliers.
L. M.: What are the next steps in this process of adapting your supply chain?
D. D. : We are currently expanding the automatic replenishment to all permanent products. And we are preparing for the cross-channel, with the deployment of Intersport France towards e-commerce. Our goal is to meet the customers’ expectations, providing them products expected where they wish, whether in store or at home, it is up to us to adapt to meet their expectations and not the other way around. This means that we will not create warehouse dedicated solely to online sales. Intersport has started e-booking, click and collect is for current 2016, and online sales for 2017.
Interview by Houda Ghaebi.