Myer selects Linde for it’s new beginning

One of Australia’s oldest and most well known retailers selects Linde equipment for it’s brand new supply network. Myer is a $3 billion dollar a year business and is Australia’s largest department store with 67 stores across the country.

Myer separated from the Coles Group in June 2006 and was sold to the Texas Pacific Group (TPG). The business, under the new management team of Executive Chairman Bill Wavish and Chief Executive Officer Bernie Brookes, is two years into a 50 month turnaround in the business.

Myer‘s Supply Chain delivers over 650,000 carton equivalent units per month to 67 stores through four regional distribution centres around the nation. Myer’s intention is to expand the number of its stores to over 80.

Scott Braddy, Myer’s National Supply Chain Manager, was given the task of setting up the new supply network. He recalls “The split from Coles meant that Myer had to set up it’s own supply chain, including the sheds, the racking, the equipment, and even the people, which was a huge undertaking. Myer went from having access to a shared Coles supply chain that looked after Office Works, Kmart, Target and all of their divisions, to having to start again from scratch. As such, we needed to make sure we found a supplier who could deliver on our demanding expectations.”

Finding a single provider that could live up to these expectations was Scott’s main aim, rather than multiple suppliers. He elaborates “There are a number of benefits to dealing with only one provider. Apart from the cost savings, our provider has a vested interest to maintain the equipment to its highest standard as our distribution centres”

Selecting the potential candidates for the task

“In its search for a new materials handling partner, Myer needed to seek a provider that could handle the supply and ongoing maintenance for over 300 different pieces of equipment. Myer’s challenge to tendering companies was to deliver a material handling equipment solution that helped drive down operating costs whilst establishing an environment that allowed us to proceed with the business of running our supply chain.”

“There were four companies that we originally considered that we felt could deliver the benefits and meet our long term requirements.”

When selecting the original four candidates, word of mouth testimonials played a large role, as Scott explains; “Linde was referred to Myer by colleagues in the retail industry who previously had had a positive experience when dealing with Linde.”

The final selection process

During the eight-week tender process, Myer needed to assess specific criteria before selecting a suitable provider. Scott continues “To help us reach our decision, Myer utilised a matrix that considered a number of areas. The weighted criteria were ability to partner, the supplier’s equipment range, serviceability, cost, flexibility, lead time, spare parts availability and efficiency. Linde performed extremely well across the board in comparison to the competitors.”

These ‘high end’ factors were not the only consideration though, the drivers themselves needed to be happy. Scott elaborates “In consideration for the safety and comfort of the Myer people who operate forklifts, pallet movers, and the rest of the fleet, and to test efficiency of the equipment, we enlisted the help of our team members in Myer’s new Altona Regional Distribution Centre to thoroughly trial the equipment before making our decision. The overwhelming choice was Linde. They found the electric fleet very comfortable to drive, and the superior visibility was a huge advantage in terms of safety and efficiency”.

Environmental issues were also taken into account when deciding on the Myer fleet; “Certainly fuel emissions and noise levels were a consideration when choosing the preferred equipment. The decision was made to proceed with battery operated equipment which is much quieter with the added benefit of not producing emissions. Myer’s fleet now consists of single and double pallet movers, narrow aisle stock pickers and reach and container forklifts, all of which are battery operated.”

“Since commencement of our partnership, Linde has delivered exactly what Myer has requested, resolving issues quickly, even helping us to reach a solution to handle roll cages which have been a recent introduction into the supply chain for the movement of merchandise. I’ve had plenty of experience with other materials handling providers, and Linde have compared very well when considering serviceability, flexibility and delivering solutions.”