With a team of over 700 people, the programme has
- a new central accounting system and a single payroll
system for colleagues;
- 12,500 new touchscreens on tills;
- a solution for simplifying cash reconciliations in-store; and
- voice picking in our distribution centres to increase the
accuracy of deliveries.
A key focus in 2011/12 has been the introduction of a new
produce manufacturing solution to our five manufacturing
produce sites to improve efficiency.
Produce manufacturing solution
Produce manufacturing is central to the Morrisons commitment
to quality from field to fork. Employing 2,700 people, our
produce sites produce 29m packs of fresh fruit and vegetables
every week for sale in our stores. Until 2010/11, each site was
planning independently against daily orders and managing stock
levels accordingly using manual systems. Visibility of inventory
levels and yields was limited.
The Evolve programme means more than just new systems.
With over 75% of the workforce set to use the new solution,
skill levels across the entire division were raised. "We had
to change the way people operate - and their mindset",
says Andy Joynson, Manufacturing Director for Produce, "we introduced more robust processes, structure and
organisation - driven by better solutions."
With two years in planning and 16 months in rollout, all the
produce sites have invested in a huge collaborative process.
The three month readiness programme before each go-live
covered everything from leadership through to infrastructure.
This, along with the commitment shown by colleagues, was
the key success factor.
The new produce solution: provides advanced, centralised
planning and scheduling; orders from the sales management
system; checks raw material inventory and creates a demand
for manufacturing and replenishment stocks from suppliers;
and sets hourly schedules for production lines. We have
automated the processes for bringing raw materials to site,
receipt of orders and marrying up our resources. We now
have consistent methods for planning and scheduling,
and standard reporting.
The dispatch process is also more efficient, with produce
allocation and picking lists generated automatically, meaning
stock visibility has improved across the business. We can
produce a report at any time to show exactly what is in every
area of the business, and in what state, replacing the need for
The new solution supports our drive for quality in fresh produce.
It allows us to monitor the ongoing quality of all products,
enabling better supplier management. Better visibility of stock
also increases the focus on reducing inventory in the supply
chain, which helps to ensure freshness.
In 2012/13, we aim to deliver benefits of £1.3m through
improved labour efficiency and yield. The major benefit,
however, is derived from improving sales order fulfilment
against quantity and time. This will lead to improved availability
in our stores for customers. The overall benefit is estimated
at £2.7m a year.
Next up - meat
Our meat manufacturing solution is going live to our first
abattoir in the second half of 2012/13, with rollout to the other
two sites by early 2013/14. The meat solution is necessarily
more complex than produce, yet builds on the same model.
Productivity and efficiency savings are expected, with an overall
benefit of £2.2m year-on-year once the system is complete.