Case study: JD Wetherspoon

Giving your suppliers visibility of your stock

Written by Joe Devo

“It needs to be seamless and quick, so point-of-order to point-of-delivery needs to be rapid, and it also needs to be as automated as it possibly can.”

This, says chief operating officer Paul Harbottle at JD Wetherspoon, is the recipe for the sort of supply chain his business needs.

To some extent, the company has ensured it delivers for itself, having invested heavily in a distribution facility in Daventry, opened in July 2004.

“We’ve seen a big benefit for JD Wetherspoon because the warehouse has allowed us to take a lot of costs out of the supply chain,” says Harbottle. “Where we used to use retailers, we now go direct to suppliers.”

The distribution centre means that the meal you eat in a JD Wetherspoon pub will have been produced from ingredients that arrived in the Daventry facility yesterday and shipped out overnight to one of the company’s 670 pubs around the UK.

The bottle of Californian Zinfandel to accompany your food has followed a different supply path, however, with the same facility offering sufficient storage capacity to hold a month’s worth of wine from overseas.

The distribution centre is underpinned by a warehouse management system from Chess Logistics and offers integration with a couple of the more select providers from the 250 that service the pub chain’s Daventry needs.

“We have one or two suppliers who have visibility of our systems, although we don’t have any visibility of theirs,” says Harbottle.

“Therefore, they can see the demand that’s come through from pubs and they can see our stock-holding at Daventry. We’ve taken some costs out of the supply chain by allowing them to just replenish the stockholding, which at Daventry is effectively theirs and only transfers on to our books when it goes out. We give them a portal which allows them to see our stocks via the web.”

Harbottle would like to see this broadened to two-way visibility, but recognises that while the supply chain was prioritised by the business three years ago, its moment back in the limelight appears some way off.

“I would like to see more progress, but we made such a big change and saw such a dramatic improvement in our supply chain three years ago when we put the centre in place, that other things in the business have taken priority now as they offer bigger wins,” he says. “The pub industry as a whole has much more pressing issues around things like non-smoking and licensing hours.”

Wetherspoon’s supply chain ambitions are further stymied by the distinctly low-tech nature of its electronic point of sale (Epos) systems, contrasting sharply with the Daventry operation.

“It is not linked to our Epos system, so we can’t see sales,” says Harbottle. “That should be and would be our next step if our pub system was sophisticated enough to be able to do it.

“We have a fairly obsolete Epos system at the pub level, which was built around just selling things over the bar and not placing things at the other end. So our demand forecasting is all done at Daventry, based on historical sales, known future events and a sales overlay that we put in on top of that.”

But with the company set to add a further 30 to 35 pubs in the coming year and turnover now topping £900m, it is perhaps entitled to prioritise ways of keeping the smoking community in the general vicinity of its premises.

  • Have your say
  • Send to a friend
  • Print this
  • Share

reader comments

related articles

Picture of shelf filling

Taking stock of business

As consumers become increasingly demanding, perfecting your supply chain is vital 18 Oct 2007

 

Eliminating the weakest link

Strong supply chain management is not just about controlling external suppliers 18 Oct 2007

Case study: WE International

Investing in planning and replenishment 18 Oct 2007

JD Wetherspoon says pub tax is killing industry

JD Wetherspoon hits out at government's tax regime for contributing to pub closures 13 Mar 2009

Think tank: Pubs need less tax and regulation

Think tank warns government about tax and regulation concerns for pubs 31 Mar 2009

related whitepapers

today's top stories

PaperlinX outsources IT and comms to Bull and BT

Paper company spends €22m on five-year deal for desktop management, helpdesk and datacentre services 05 Feb 2010

Social tools take KM to a new level

Technology expert David Tebbutt explains how – and why – organisations should integrate social networking tools into their knowledge management strategy 02 Feb 2010

EDS court defeat puts vendors on their guard

BSkyB’s victory in a long-running court case against EDS has serious implications for the IT industry 02 Feb 2010

Law firm monitors web traffic violations

Bucks declining global security appliance sales with unified threat management (UTM) platform deployment 01 Feb 2010

Video Q&A: John Suffolk, UK government chief information officer

On delivering more for less and developing IT skills for the future 29 Jan 2010

Advertisement

Security: The New Face of Intrusion Prevention
An outline of traditional IPS functionality, modern developments and how IPS can be deployed easily.

UK businesses’ attitudes to Cloud Computing revealed

Features results from a survey of over 200 Computing readers.

Advertisement

Keep up to date with the latest products, services and technologies from the world's leading IT companies; ITHound.com brings you over 6,000 white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

More available - click 'submit' to view

Existing User

Newsletter user login:

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

Latest poll

Internet Explorer 6

Internet Explorer 6

Following recent concerns about the security of Internet Explorer 6 are you planning to phase it out?

View poll results

Latest audio and video articles

Tony McAlisterVideo

Video Q&A: Tony McAlister, CTO, Betfair - Part one

On changing the skills development strategy at the online gambling firm - part one of a two-part video interview 05 Nov 2009

Video

Nokia shows upcoming handset technologies

Mobile phone features of tomorrow take the stage 21 Oct 2009

Latest in-depth articles

Businessman with eye patch, dagger and tie round head, sitting at laptopFeatures

Are you sure you're not a pirate?

It is alarmingly easy for an IT leader to unwittingly exceed the scope of a software licence, and the chances of being caught out have never been greater, as technology lawyers Mark Weston and Paul Gershlick explain 09 Feb 2010

Analysis

PaperlinX outsources IT and comms to Bull and BT

Paper company spends €22m on five-year deal for desktop management, helpdesk and datacentre services 05 Feb 2010

Primary Navigation