Bruce Harryman's document summarizes the history and evolution of John Lewis' supply chain and logistics network from 2002 to 2017. Over this period, John Lewis grew from 46 shops and 346 Waitrose shops to over 90,000 partners and £11 billion in annual sales. The key developments included establishing a single pool of shared stock across all channels in 2002, building a large automated distribution center called Magna Park in 2008, and continually expanding Magna Park to improve efficiencies around store-friendly deliveries, direct-to-customer capability, picking accuracy, and stock reduction. The document notes future challenges will involve adapting to changing customer behaviors like omnichannel shopping and responding to promotional events and seasonal demands.

1. Bruce Harryman
Senior Manager Network Planning

3. John Lewis then ...

4. The Partnership today …
• 46 John Lewis
Shops
• 346 Waitrose Shops
• Residential Clubs
and Amenity
Centres, Farms,
Mills, Financial
Services
• 91,500 Partners
• Annual Gross Sales
2015 £11bn
• Bonus to Partners
between 10% and
17% of annual pay
over past 5 years

5. February 2001

6. October 2002

7. 5 Days a WeekManual Operation
Supply Chain 2002

8. Replenishment Profile

9. Flexible
Design
Single Pool
of Stock
Future
Capacity
Store
Friendly
D2C
Capability
SKU
Residency
Singles
Picking
Pick
Accuracy
Labour
Efficient
The
Ambition
Flexible
Design
Something had to change

10. Flexibility - 3 Key Principles
Multi FunctionalModular DesignAutomated Vs Manual

11. Magna Park 2008

12. But requirements were changing.....
20172002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

13. 2011 - Extension 2012 - Extension
2013 - Extension 2014 - Extension
Flexible Design

14. 2015 - Extension

15. Has The
Ambition Been
Achieved?

16. Store Friendly Deliveries
1,000
Streams

17. Direct to Customer Capability

18. Sell One Pick One

19. Improved Accuracy

20. Improved Efficiency

21. Stock Reduction

22. Additional Selling Space

23. Single Pool
of Stock
Future
Capacity
Store
Friendly
D2C
Capability
SKU
Residency
Singles
Picking
Pick
Accuracy
Labour
Efficient
Flexible
Design
Design Objectives

25. Future Challenges
PropositionTechnology Seasonal Events

26. Online sales are growing

27. Wake up to mobile Desktop browsing
Dual
screening
Tablet
Mobile
Desktop
Online traffic is changing

28. Mobile is in the ascendancy

29. Customers want convenience
2008 2012 2014

30. And a seamless experience

31. Lifestyles drive behaviour

32. ... as do promotions and events

34. Creating spikes in demand

35. Customer journeys are altering

36. … and becoming omnichannel

37. Success?

39. Thank You