The Accenture project on increase in effective management of a supply chain and stocks for Leroy Merlin

In May, 2014 the Accenture company announced end of the large-scale project on transformation of a supply chain and inventory management for the Leroy Merlin in Russia conducting the DIY retailer in Europe.

Accenture developed the solution directed to increase in efficiency of a logistics system of Leroy Merlin in Russia due to achievement of bigger transparency of deliveries, more exact and reliable calculation of inventory cost based on management accounting and IFRS. The solution Russia will allow Leroy Merlin to eliminate discrepancies in assessment of stocks and to automate numerous manual processes of management of the supply chain consisting at the moment from three distribution centers, 28 shops to 16 cities of Russia offering to buyers a product catalog on 35,000 names.

"The main task consisted in integrating all components of the organization of deliveries and acceptance of goods, to gain clear idea of existence of products and to develop more reliable, fast and cost-efficient system which will lead to service quality improvement", – Bernard Barfeti, the director of the organization of transactions and information systems in Leroy Merlin Russia told. "We needed the solution which would allow to analyze the numerous demand data arriving on different channels, supply networks and sales points. Accenture, relying on the serious experience, helped us to orient with issues of complex transformation of information technologies, business processes and supply chains and developed for us a new management system".

The new system started in September, 2013 provides coordination and efficiency in key areas of logistic process of Leroy Merlin Russia thanks to the analysis and optimization of components of product cost and stocks. Higher level of automation and effective infrastructure will promote dynamic expansion of the Russian business of Leroy Merlin – up to 80 shops in the next five years. "Implementation of a new system allowed to make our supply chains transparent and managed and also provided control and optimization of cost value of our goods that gave us the chance of further development of our strategy Low Prices Every Day (EDLP)", - Pyotr Asratyan, the project director of upgrade of information systems of Leroy Merlin Russia noted.

"The implemented system is the important mechanism of decision support for Leroy Merlin Russia providing clarity, flexibility and efficiency of planning process and supply chain management", - Mikhail Pershin, the head told Accenture practice retail. "We are proud of a project startup which Russia will open for Leroy Merlin more transparent approach to inventory management and will allow the company to provide the best service for the clients".

Shops of Leroy Merlin in Moscow are first-ever on a goods turnover and the number of buyers among all shops GROUPE ADEO. GROUPE ADEO takes the 1st place in Europe and the 3rd place in the world on a goods turnover.