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He provided solution architecture services for the change programme to achieve a New Operating Model (NOM) for Dixons Stores Group International (DSGi). The assignment was integral to translating business requirements and strategies into functional solution requirements for supply chain improvements.
DSGi implemented significant changes to its supply chain and distribution network, aiming to enhance operational efficiency and reduce costs. A key strategy involved the consolidation of distribution centres (DCs) and the adoption of sale and leaseback arrangements.
These measures were part of DSGi’s broader Renewal and Transformation plan, aiming to revamp stores and improve profitability amid a challenging retail environment.
DC Consolidation and Cost Savings situation:
DSGi announced plans to reduce its UK distribution network from 17 to just two regional distribution centres (RDCs) over two years. This initiative was part of a broader cost-reduction exercise, targeting savings of £30 million in the first year alone. The consolidation aimed to streamline operations and improve efficiency across the supply chain.
He was responsible for providing a critical link between business groups and IS delivery implementation partners (LogicaCMG and HCL) within the customer-facing IS team. This involved solution design and release management, lifecycle management, functional landscape architecture, integration specifications, and development specifications.
The environment comprised a complex mix of applications scope including:
The role also supported tactical cost-saving activities and IS systems related to supply chain enhancements.
His key actions included:
His results and achievement benefits included:
Financial Impact:
Despite these strategic moves, DSGi continued to faced financial challenges during this period. While this initiative resulted in cost-reductions of approximately £30 million in the first year alone.
For the full financial year end after the completion of the NOM programme the company reported a loss of £140 million, this supported an immediate financial improvement from the £184 million loss the previous year.