Pick n Pay to accelerate investment in supply chain efficiencies

Pick n Pay has announced that it is to use parts of the proceeds from its recently-announced sale of the Franklins chain in Australia to fund its roll-out of distribution centres in South Africa. CEO Nick Badminton said the retailer was trying to catch up with competitors on supply chain efficiency. Badminton said: “Our decision to move to a centralised distribution centre was motivated by changes in South Africa's retail landscape which had seen us fall behind our competitors, who were investing significantly in supply chains and improved services to their stores through centralised distribution systems.” He added: “We were also driven by the realisation that our distribution operations were running over capacity and had become inefficient, resulting in stores being overstocked and a deterioration in customer service levels.”

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