Briscoe Group, the retailer behind Rebel Sport and Briscoes Homeware, has partnered with global management consultancy, Argon & Co, to transform its New Zealand supply chain. Opening a new distribution centre in Drury, South Auckland, the company has introduced a new demand-led replenishment model which aims to improve how inventory is managed and distributed across stores.
The move addresses a longstanding challenge for the retailer. While it held Despite holding significant stock in stores throughout its network, Rebel Sport’s on-shelf availability was lower than desired, with the new model designed to lift the top 6 suppliers to 90 per cent.
“Briscoe Group had plenty of inventory in its network, but too much of that stock was sitting in the wrong places. The opportunity was to change that so stores didn’t need to double as warehouses and could instead use their space to give customers more choice and product availability,” said Jeff Triantafilo, Partner at Argon & Co.
“Building a new distribution centre was only one part of the project. We’ve redesigned how inventory moves through the business, introduced the technology and automation to support it and helped Briscoe Group take much greater control of its end-to-end supply chain.”
The new Drury operation has increased pallet storage capacity from approximately 4,000 to 15,000 positions, allowing Briscoe Group to hold more inventory centrally and replenish stores based on actual demand.
For Briscoes Homeware, this has already changed how stock is distributed. Previously, 80 per cent of incoming products were sent directly to stores, compared with just 20 per cent under the new model. The remaining stock is now held centrally and released to stores as needed, with the Group targeting a 57 per cent reduction in store inventory for Briscoes Homeware and a 67 per cent reduction for Rebel Sport, from 18 to six weeks of cover. This will be supported by a forecast-driven replenishment process, with a further four weeks of stock held at the distribution centre.
The transformation is also projected to improve imported stock turns by approximately 20 per cent, from 2.49 to 3.0, helping reduce the amount of capital tied up in inventory while maintaining the stock needed to meet customer demand.
“This transformation was really about making sure we have the right inventory, in the right place to meet customer demand. By holding more stock centrally and improving how we plan and replenish stores, we can respond much more precisely to what each individual store needs. That means less excess stock taking up valuable space, better product availability for customers and more room to sell rather than hold excess inventory,” Darren Porteous, General Manager Supply Chain at Briscoe Group.
Argon & Co supported Briscoe Group throughout the transformation, from developing the business case and designing the new warehouse and automation systems to technology procurement, implementation, change management and operational readiness.
The project included the phased introduction of a new Manhattan Associates warehouse management system (WMS), helping the business transition from highly manual processes to a more automated, technology-led operation. Goods-to-person automation has also been introduced to support unit-level store replenishment for Rebel Sport.
Early results have demonstrated the system’s productivity potential. During the first weeks of operation, the automation averaged approximately 237 picks per hour, with a target of 300, with one operating period reaching 446 picks per hour, almost 50 per cent above the targeted rate.
“Argon & Co has effectively been an extension of the Briscoe supply chain team throughout this journey. They’ve brought in the right people at the right time, whether we needed expertise in warehouse systems, automation, property, testing or program delivery. Their support has helped us manage a major transformation while keeping our day-to-day operations running,” concluded Porteous.
