, from order entry to allocation, shipping and settlement. The projected $20 million saving is over three main areas: labour efficiencies; transportation; and a number of smaller projects including different flow methods. “It enables us to harness significant labour and transportation savings in the DCs (distribution centres),” Carroll said. “From a labour perspective we can consolidate all of our tasks and requirements in one place and therefore get efficiencies rather than having multiple versions, multiple tasks.” One of Australia’s largest specialty retailers, SRG has an annual turnover in excess of $2 billion and more than 650 stores. The solution will provide better service across its entire retail portfolio, which includes Amart Sports, BCF Boating Camping Fishing, Ray’s Outdoors, Rebel, Super Cheap Auto and Workout World. “The reality is our products are reasonably similar across the brands so we can direct our labour more efficiently if we’re getting it all from the one source,” Carroll said. “We’ve got Supercheap Auto, which is not as seasonal as BCF, Ray’s, and our sports brands, so we get to balance that labour a bit more effectively,” he explained. In addition, SRG has rolled out voice picking technology in its newer distribution centres, which has also had a positive impact on labour. “Manhattan’s product has enhanced capabilities around labour management, and also slotting within the DC, both of which help us with our labour productivity targets,” Carroll said. “By leveraging a common distribution infrastructure and having network-wide visibility of inventory, DOM will also enable the company to reduce transport and inventory costs.” Having all the brands’ stock under one roof allows truck loads to be optimised, saving trips and fuel costs. Previously there was little integration across the group’s operations as each business unit operated via their own DCs, which meant stock was bought, stored, managed, and transported separately. Over the past three years, the group has embarked on a transformation of its distribution centre network. New centres have been constructed at Erskine Park in Sydney and at Brendale in Brisbane. The brands are now purchasing in a single group, rather than independently, which is giving the group greater buying power and delivering more administrative efficiencies. Farewell FCO In other news, SRG is closing all its FCO (Fishing Camping Outdoor) stores this week. “We took the decision a little while ago to shut down that business. We’re looking to cease trading in all our FCO stores in New Zealand,” Carroll said. The 13 stores that operated in New Zealand’s North Island and offered a large range of outdoor equipment and apparel will close by the end of May. Back in Australia, Ray’s Outdoors is being revamped. There are more than 55 stores throughout Australia at present, spread across all the states. SRG will close some underperforming stores and refurbish others. “We are transforming the Ray’s Outdoors business,” Carroll said. “We’re looking to shut four stores by around the end of the financial year, and to open or refurbish a number of stores before the end of the calendar year.” SRG is aiming to make the Ray’s Outdoors store a more engaging experience for customers, focusing on the brand’s core message about having people experience the Australia that “other people travel halfway around the world to see”. This story first appeared in Inside Retail PREMIUM issue 2047. To subscribe, click here.