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Accenture Supply Chain and Inventory Management Transformation Project Improves Time-to-Shelf for Leroy Merlin’s Products in Russia

Accenture (NYSE:ACN) has successfully completed a large-scale supply chain and inventory management transformation project for the Russian operations of Leroy Merlin, the leading do-it-yourself (DIY) retailer in Europe.

Accenture designed a solution that aims to improve the efficiency of Leroy Merlin’s Russian enterprise logistics system by creating greater transparency of supplies and more accurate and reliable calculation of inventory costs based on management accounting and International Financial Reporting Standards (IFRS). The solution will help Leroy Merlin eliminate discrepancies in inventory valuation and automate a variety of manual processes used to manage its supply chain operations across three of its distribution centres, serving 28 stores in 16 Russian cities and offering a combined product catalogue in excess of 35,000 items.

“Our primary challenge involved connecting the components of our demand and supply planning and fulfilment operations to gain a clearer view of product availability and to develop a more reliable, time-to-shelf system that is speedy and cost effective, improving customer service,” said Bernard Barfety, Operations and IT Director at Leroy Merlin Russia. “To achieve our objectives, we needed a solution that would enable us to capture and analyse dynamic demand signals across multiple channels, supply networks and fulfilment locations, and Accenture, drawing on its extensive experience, has helped us navigate complex IT, business processes and supply chain transformation considerations to develop our new system.”

Started in September 2013, the new system is delivering greater consistency and efficiency to several key areas of the company’s logistics process through better analysis and optimization of product cost components and inventory optimization. It enables more automation and provides a stronger infrastructure to support the expansion of Leroy Merlin’s Russian business to 80 stores in the upcoming five years.

“The implementation of the new system has made our supply chain transparent and manageable. It has also provided us with the tools to monitor and optimize the cost of our goods, enabling us to further develop and execute on our Every Day Low Price (EDLP) strategy,” noted Petr Asratyan, Director of IT modernisation at Leroy Merlin Russia.

“The newly deployed system is an important decision-support mechanism for Leroy Merlin Russia, providing, visibility, flexibility, and responsiveness throughout the supply chain planning process,” said Mikhail Pershin, Retail Lead for Accenture in Russia. “We are proud to have delivered a system that gives Leroy Merlin Russia a more seamless approach to inventory management and enables them to provide a better service to their customers.”

The Moscow operation of Leroy Merlin is the largest by commodity turnover and number of buyers in the company’s global network of GROUPE ADEO. GROUPE ADEO ranks first in Europe and third worldwide by commodity turnover.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with approximately 289,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.

About Leroy Merlin

Leroy Merlin is an international retail company selling goods for home, cottage and garden improvement, construction, and decoration. The Leroy Merlin brand helps people all over the world to make their homes and quality of life better. Leroy Merlin incorporates 325 stores all over the world and offers its customers a wide selection of quality goods, attractive prices, and a high level of services. The first Leroy Merlin store in Russia opened in 2004 in the city of Mytishchi, Moscow region. Now 28 stores have been opened in 16 regions of Russia offering their customers varied assortment of goods at affordable prices in the Russian market in any commodity type as well as professional advice of consultants and a range of related services. Since 2002 GROUPE ADEO has invested 630 million Euros in Russian economy. www.leroymerlin.ru

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