The premise of this case study is to describe the supply chain and logistics of Leroy Merlin and deliver suggestions on how to improve its performance.

1. Global Supply Chain
Management &
Logistics - 7LO518
Module Tutor: Fillipas Dionysios
Students: Moulagianni Ioanna
Tsardaklis Vasileios
Galanos Nikolaos
Nikolaou Konstantinos
Panagiotopoulos Manos
April, 2019

2. Hello!
We are Ioanna, Nikos, Manos,
Konstantinos & Vasilis.
We are here to present
the Supply Chain
Management of the
LEROY MERLIN company
and how it operates in
Greece.

3. 1.
Introduction
Group ADEO & LEROY MERLIN

4. Group ADEO Overview
Group ADEO consists of 14 open, interconnected chains,
and 33 autonomous, human-scale companies. Leroy Merlin
is its star brand all over the world.
The first is a sense of belonging and respect
for diversity.
According to the second, people are the
cornerstone of the Group.
The third is the culture of sharing at four
levels: knowledge, decision-making,
success and wishes (ADEO, 2019).
The Group has three major values.

5. Group ADEO Overview
ADEO has become the first French company on the
international market and the third worldwide.
0
10000
20000
30000
Worldwide Workforce
Source: https://www.adeo.com/el/activites
It has 89,000 associates and 33 companies in 15 countries, employing
112,000 people, servicing around 1,500,000 customers worldwide on a
daily basis.

6. Market Description
Leroy Merlin consists of DIY superstores offering goods for
private individuals, professionals and home life (ADEO, 2019).
There are four areas of products and services: DIY, building,
gardening and home decoration. Products and services may be
differentiated among the countries, so as to better match the local
features (Leroy Merlin, 2019).
Presented in the following figure
are the Leading Do-It-Yourself
(DIY) Retailers in Europe in 2017,
based on turnover.
0 10 20
Wilko (UK)
Mr. Bricolage (FRA)
Hornbach (GER)
Kesko (FIN)
Hagebau (GER)
Bauhaus (GER)
Obi (Tengelmann) (GER)
Home Retail Group (UK)
Kingfisher (UK)
Groupe Adeo (FRA)
Turnover in million €
Source: Statista, 2019

7. Company History
The history of Leroy Merlin dates back in 1923, when the
company “AU STOCK AMERICAIN” was established by
Adolph Leroy and Rose Merlin. They were a
couple in business and in life. The company’s
activity was the resale of American products
left after the First World War.
Later the company changed its name to LEROY
MERLIN, introducing delivery service and opening its first
self-service DIY store. In 1979-1981 the company was
acquired by Association Familiale Mulliez.
Its first overseas store opened in 1989 in Spain.
In 2007 Leroy Merlin Group changed its name
to Adeo Group and in 2014 to Adeo.

8. Group ADEO Overview
Stores in 13 countries. LEROY MERLIN supports people all
around the world improve their living environment and
lifestyle, by helping everyone design the home of their dreams
and above all, to achieve it.
Source: https://www.adeo.com/el/activites
Brazil
China
Cyprus
France
Greece
Italy
Poland
Portugal
Romania
Russia
South
Africa
Spain
Ukraine

9. Stores in Greece
Athens - Eleftherios Venizelos 2007
Thessaloniki 2008
Larisa 2009
Cyprus 2011
Athens – Peiraios Ave. 2009
Athens – Marousi 2016
Athens – Vasilis Sofias Ave. 2018
Leroy Merlin arrived in Greece in 2005, until now it has
opened 6 stores in Greece and 1 more in Cyprus.
Eleftherios Venizelos store in Athens is the starting point of the
analysis made.

10. Logistics & Supply Chain
Management
2.
Theoritical
Analysis

11. Logistics & Supply Chain
Management
Logistics:
• Flow management of goods
• Services & info from origin point to consumption
Supply Chain:
• Flow of raw materials, info, goods & services
• Suppliers, factories, warehouses & end customers
In fact, supply chain is a sequence of processes and flows designed to
meet the requirements of end customers and carried out within and
between different stages of logistics (Gilaninia et al., 2011) in the shortest
possible time and at the lowest cost (Alfonso & Cabrita, 2015).

12. “
Supply Chain management can be defined
as the design, organization, and
coordination of all business activities,
related to procurement, production,
processing and distribution.
(Singh et al., 2013)

13. Logistics & Supply Chain
Management
Logistics concerns a complex concept that includes a wide
variety of design, implementation & control processes.
Basic Elements: designing, making the best of human and
material resources, production, storage and distribution of
goods from raw materials to the final product and from
production to the shelves.
Help profitability, produce products with the
lower cost possible, making sure of the
products’ availability.

14. Logistics are applied mainly in two fields:
Business, organization of the inflow, internal circulation,
outflow of materials to ensure the best possible customer
satisfaction
Supply chain, the business’ need of raw materials to
convert in final product.
The successful management of the flow of
products and information in this chain is a
necessity in a globalized and digital economy,
where competition turns from individual to
collective.
Logistics & Supply Chain
Management

15. “
The alignment and coordination of
businesses, upstream and downstream, that
make a supply chain aiming to produce
and deliver high quality products to the final
consumer with the lowest possible cost for
the total supply chain.
(A. Harrison, R. van Hoek, 2002)

16. Downstream & Upstream
2.
Supply Chain

17. LEROY MERLIN
Downstream
GROUP ADEO
PRODUCTS FRANCE
LOGISTICS IN ITALIA
FOR EASTERN EUROPE
ITALIAN PRODUCERS
AND PROVIDERS
(DELLINIA)
GREEK PRODUCERS &
PROVIDERS
DHL LOGISTICS
ASPROPIRGOS GR
LEROY MERLIN GR
Producers/Providers
for Group Adeo
France
OTHER EUROPIAN &
NON EUROPIAN
SUPPLIERS
GREEK CONSUMERS
DHL LOGISTICS &
DISTRIBUTION
KUEHNE NAGEL
LOGISTICS

18. LEROY MERLIN
Downstream
Group Adeo’s supply chain begins to form in France. The suppliers
whose names are unknown due to the Group’s code of ethics, deliver
their products to the main warehouses in Dourges, Valence, and
Chalons.
From France, Group Adeo ship the products in containers to warehouses
owned by Group Adeo in Italy. Group Adeo has providers in Italy as well,
they also deliver their products to the warehouses in Italy. These
warehouses are responsible for the whole distribution of LEROY MERLIN’s
stores in Eastern Europe.

19. LEROY MERLIN
Downstream
DHL is responsible (via contract) for the storage and transportation of
products from Italy to DHL’s warehouses in Greece as well as the
distribution from the LEORY MERLIN stores to the end customer.
Kuehne Nagel acts differently, they deliver straight
to the Leroy Merlin Greece stores. The company
acts more as a backup.
Up to this point, Group Adeo uses his own logistics and
transportation means except for the shipments with the containers.
From Italy, two independent logistic companies join the supply
chain, DHL & Kuehne Nagel.

20. LEROY MERLIN
Downstream
The division that receives products and is
responsible for the distribution into the store’s shelves
In Greece, Leroy Merlin has Greek suppliers as well. They deliver
their products straight to the Leroy Merlin stores.
Leroy Merlin stores have their own logistic
departments divided into two divisions:
The division that is responsible for the customers’ orders and the
collection of defective products. More specifically, they receive the
sales’ orders, arrange the distribution with the DHL company to the
end customer as well as the return of defective products to the
warehouses and all the way back to Group Adeo suppliers

21. PIXYS program
Real-time monitoring of stock level,
customers’ orders, invoices, restocking
orders. This program connects all the
stores of LEROY MERLIN Greece, the
warehouses of DHL and Group ADEO
3
LEROY MERLIN
Upstream
Questions from cashiers to customers
LEROY MERLIN uses 4 ways to achieve the Upstream flow:
LEROY MERLIN’s sales Department
PIXYS program
External salesmen from Greek suppliers
who are deployed in stores
Sales Department
& external sellers
Sales department and sellers
from greek providers have a
board meeting every 6
months in order to remodel
the marketing and sales plan
2
Questions from
Cashiers
Satisfaction and demographic
questions in order to improve
the customer service and
satisfaction
1

22. LEROY MERLIN
Upstream
Questions from cashiers to customers. where they live, if they found in the
store everything that they wanted or searching to buy, if they are
satisfied with the prices, and if they have any proposals to suggest
Upstream in the supply chain means to define all information
regarding products and consumer's preference for them. In Leroy
Merlin’s stores that information generates from four key aspects.
For products from Greek suppliers, responsible for the information about
stock monitoring and restocking, are sellers in the store that are
employed by the Greek providers. Their task is to monitor the stock supply
in the shelf and to maintain the store’s preset threshold.

23. LEROY MERLIN
Upstream
Every six months in every Leroy Merlin’s store in Greece the
sales and marketing department meet in order to decide
about stock thresholds, new products and the remodeling
for marketing reasons.
PIXYS program. In every step, the products from the Greek shelves up
to France, the Italian and French suppliers the restocking and new
product orders. All information and sales are monitored by Group
Adeo through this program. PIXYS is also responsible, by the preset
thresholds for each store.

24. 3.
Critical Analysis
Impacts & Relationships

25. Critical Analysis
Downstream-wise the delivery of products from Group
ADEO and local providers to the final customer.
Upstream-wise the information from the customer and
sales-team to LEROY MERLIN and Group ADEO.
Critically analyzing the data given above, one of the main
advantages of LEROY MERLIN is the speed of delivery.
Fast delivery contributes to better relationship between the company
and the customers as well as the transportation companies (DHL &
Kuehne Nagel).
The fact that LEROY MERLIN has more than one
transportation companies as partners, agrees with the
strategy intent of the company to avoid monopoly.
Although, the part of delivery to the final customer is
monopolized by DHL.

26. Critical Analysis
In terms of stock management, LEROY MERLIN has
managed to balance the overstock-understock issue.
The reason why, is the real-time monitoring of the
products via the Pixies program.
In addition, the company has built a good response on aftersales
system. With the continuous flow of information, the return and
replacement of defective products is fast which results in satisfied
customers and helps to ensure that defective products do not use
much space in warehouses.
Regarding costs and risk management, LEROY MERLIN maintains low
costs in their supply chain. This is because the company does not
have proprietary warehouse or vehicles. They cooperate with DHL for
that via contractual agreements.

27. Critical Analysis
Moreover, the company shares the risk through these
agreements with DHL, something that naturally leads to
the trust between the two companies.
The way that the supply chain of LEROY MERLIN is modeled impacts
local societies through creating jobs and supporting the local
providers.
Because the 70% of the products in store come from Greek local
providers it can be said that the company contributes to the Greek
economy, especially throughout
the years of economic crisis.

28. Conclusions
To synapse all the data given, it can be said that the
Supply Chain of Leroy Merlin is built as a matter of trust.
Leroy Merlin is mostly effective on the stocking and restocking
sectors. The management of the inventories carried out by the
company, crucially retains the economic stability of the firm.
Worldwide high standards are attained both in products and services
provided by Leroy Merlin. Logistics-wise, fast – track warehousing,
distribution procedures & accurate flow of
information for inventory preparation, shows
that the company is flexible and efficient.

29. Conclusions
The only point the firm may reconsider is the exclusive
partnership with DHL for transportation and warehousing. This
cooperation is in fact a monopoly, which changes the dynamic
in their relationship.
It appears at last that Leroy Merlin applies in the Greek market
an effective and efficient supply chain management, offering
to the Greek customer the right product, at the right price, on
time.

30. Thanks!
Any questions?
Please be kind and don’t ask! 

31. References
Μαυράκης, Γ., (2019). Συνέντευξη με τον υπεύθυνο παραγγελιών πελατών LEROY
MERLIN Ελ. Βενιζέλος, 28 Φεβρουαρίου, τηλ. επικοινωνίας: 2103542043, e-mail:
George.mavrakis@leroymerlin.gr
Ηλιάδης, Χρ., (2019). Συνέντευξη με τον υπεύθυνο παραλαβών LEROY MERLIN Ελ.
Βενιζέλος, 28 Φεβρουαρίου, e-mail: christie.iliadis@leroymerlin.gr
ADEO (2019). Retrieved from https://www.adeo.com/en/adeo
Afonso, H., & do Rosário Cabrita, M. (2015). Developing a lean supply chain
performance framework in a SME: a perspective based on the balanced
scorecard. Procedia Engineering, 131, 270-279.
Azmi, I., Hamid, N.A., Hussin, N., & Ibtishamiah, N. (2017). Logistics and supply
chain management: The importance of integration for business processes.
Journal of Emerging Economies & Islamic Research, 5(4), 73-80.
Gilaninia, S., Taleghani, M., Mousavian, S.J., ….., Seighalani, F.Z. (2011).
Comparative study of lean and agile supply chain management along with
the optimal model presentation of agile supply chain management. Kuwait
Chapter of Arabian Journal of Business and Management Review, 1(4), 46-56.
Harrison, A., Van Hoek, R., (2002). “Logistics Management and Strategy”,
Prentice Hall.

32. References
Leroy Merlin (2019). Retrieved from https://www.adeo.com/en/business-
areas/chains/leroy-merlin
Marodin, G.A., Tortorella, G.L., Frank, A.G., & Filho, M.G. (2017). The moderating
effect of Lean Supply Chain Management on the impact of Lean Shop Floor
Practices on Quality and Inventory Turnover. Supply Chain Management, doi:
10.1108/SCM-10-2016-0350.
Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., (2000). “Designing and Managing
the Supply Chain, McGraw-Hill.
Singh, D.C., Singh, R., Mand, J.S., & Singh, S. (2013). Application of lean and JIT
principles in supply chain management. International Journal of
Management Research and Business Strategy, 2(1), 85-98.
Statista (2019). Leading Do-It-Yourself (DIY) retailers in Europe in 2017, based on
turnover* (in billion euros). Retrieved from
https://www.statista.com/statistics/600120/diy-stores-net-turnover-in-europe/