Boots shakes up warehousing to save £60m a year

29 March 2006
More news

30 March 2006

Boots plans to save £60 million a year in supply chain costs before 2011 by centralising distribution, restructuring major IT contracts and axing 2,250 warehouse jobs.

Boots has 17 regional warehouses, which are to become lorry-docking facilities. It plans to replace the warehouses with a £70 million automated facility in Nottingham within the next three years.

It predicts a saving of £50 mil­lion by holding less stock at warehouses by 2011.

In the past two years Boots has made a number of changes to its supply chain. In 2005 the company announced savings of £80 million after switching to a demand-based system (see News, 3 November 2005).

The company also plans to alter its major IT contracts, including a £70 million-a-year outsourcing deal with IBM, to meet its new needs. It expects these to carry some implementation costs but hopes to see a return on investment within three to four years.



SMmar2006

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE