The effectiveness of the supply chain within Next Plc and it

Current model

Suppliers

Reference list

• Next currently have 510 suppliers.
• Emphasis on ethical consideration.
• Next communication with their suppliers via an extranet.
• Next carry out audits to make sure that suppliers are complying with their ethical standards and to continuously develop a relationship with their suppliers.

Thad Mcllroy, 2015

http://www.ons.gov.uk/ons/rel/rdit2/e-commerce-and-internet-use/5-facts-relating-to-web-sales/sty-5-facts.html

http://thefutureofpublishing.com/2015/03/reengineering-the-book-publishing-supply-chain/

http://careers.next.co.uk/distribution/dist_locations.aspx#link=wmb

Warehouse

Organisational background

Scale and scope

• There are 9 distribution points across the UK.
• Over 6000 employees.
• Largest waehouse is in Doncaster (located in the centre of the country).
• They handle over 350 million units a year
• When customers order before 12am, they will recieve their order at 12pm the next day

The scope of the process is identified by the size of the organisation and the overall process used within it. Next ‘trades from more than 500 stores in the UK and Eire (Ireland) and around 200 stores in more than 40 countries overseas’ (Next, 2015).

• Next is a UK based retailer established in 1982.
• Launch of the Next Directory in 1988.
• Launch of online shopping in 1999.
• Next celebrates its 30 year jubilee in 2012.
• Next trades with over 70 countries worldwide.
• Next made a profit of £634.9 million
• Voted number 2 best high street shop (M&S no.1)

- Next, 2015

Strategic focus

To deliver "exciting, beautifully designed, excellant quality clothing, footwear, accessories and homeware"

- Next, 2015.

Definition

Supply Chain Management - "the management of the interconnection of organisations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services.” (Slack, 2013, p. 406).

The effectiveness of the online ordering service at Next Plc.

By Steffi Elliott, Matthew Allen and Lazaro Da Costa

Product Surgery

Efficiency and effectivness of the strategic role

Online trend

• Analysing trends using best sellers list from the previous year
• Catwalk designs
• Some customers recieve a preview in advance

• The code of practise
• Global team
• The auditing programme
• Supplier communication and their internal communication via the extranet

Definition

Lean management - This has "developed from just-in-time (JIT) to become a philosophy of operations management which focuses on eliminating waste and reducing inventory" (Hill & Hill, 2012, p.444).

- Office for National Statistics, 2015

Lean

Agile

Make to forcast

Make for demand

Strategic inventory

Image by Tom Mooring

80%

Agile

% of total demand

Lean

20%

% of products

Why are Next successful?

In-house design team

• Product surgery
• Next have their own in-house design team
• Bricks and Clicks
• Price integrity

• Next have their own in-house design team that draw designs that are exclusive to Next.
• Negotiation with suppliers to get the best quality product at a low price.

Bow-tie relationship diagram

Trust

Relationship management between Next and the customer

Next Plc.

Supplier

Purchasing

Sales

Note - economies of scale (clothes) = lean

Agile e.g. furniture