HMV are the UK’s leading retailer of music and entertainment products. After many years of having product delivered by distributors and wholesalers direct to their 240 stores, The Logistics Business were commissioned to undertake a supply chain strategy review. This indicated that very significant savings could be realised by setting up a National Distribution Centre that would enable suppliers to make bulk deliveries to a single point, and by carrying out price labelling more efficiently than currently performed in the stores.
To maximise the efficiency gains, a solution based on automatic labelling and security tagging machines feeding directly into a high speed sorter was recommended. From the strategy project the board approved the setting up of an NDC and we were once again appointed to help with this. A project team headed by HMV, with close support from ourselves, was set up with a number of reporting workstreams. Those for automation, WMS and outsourcing were headed up by The Logistics Business. This project delivered major benefits to HMV and supported its need to adapt to a rapidly changing market place.