Entertainment retailer HMV is using software to automate the distribution of products at its online distribution centre to handle 40,000  internet sales each day.

The company is looking to improve e-commerce sales to meet competition from dedicated online retailers and has installed an automated sorting system to identify items by postcode and deliver them for collection and dispatch.

It replaces a labour intensive process where items were handled several times, says HMV e-commerce director Gideon Lask.

‘We wanted a process that eliminates manual product handling,’ he said. ‘Once the products are fed into the packaging system they don’t need to be handled again until they are sorted at the destination depots.’

The software was designed and installed by systems integrator SDI Greenstone and sorts items at a rate of 6,000 pieces an hour.

The system forms part of a strategic and operational review by HMV, that is intended to reverse  recent poor performance, says new chief information officer Gary Arthurs.

‘The review is driven by an acknowledgement that we must more effectively leverage the IT functions across HMV in order to optimise the potential benefits,’ he said.

‘HMV has recently outlined some ambitious plans for growth, which in nearly all cases requires IT to play a significant role.’

This includes development of a social networking site, continued expansion of its e-commerce platform, introduction of a loyalty card, and improvements within the supply chain to save £40m a year.

‘It is important that HMV’s IT is organised in such way to meet the challenges, so our target is to have a new organisation structure implemented and ready by the autumn,’ he said.