Leroy Merlin

Operations management is the business uses to create the highest efficiency

in an organization. It is when converting materials and labour into goods and
services as in order to increase the profit of the company. Operations management
manages people, materials resources to deliver services and products that have
been sold to customers. The reason why Leroy Merlin chose its location is because
of Nicosia’s largest municipality it has the highest population. Also Nicosia highway
connects other cities and it is next to IKEA the mall of Cyprus and it has a big
parking. The store is found is 15 countries , has 500 million customers, 150000
employees, and receives £25.6 annual turnover. In 1994-2012 ‘The company keeps
on with international expansion, with trade partnerships and acquisitions in Poland,
Italy, Portugal, Russia and Greece’. In the ground floor you can find technical
departments construction, tools, electricity hesating, doors garden exit allowing
allowing people to go in with their van and put heavy products and pay as they leave.
In the first floor you can find lighting , decoration, kitchen, storage, improvements
needs, interior designs etc.

To be able to prepare the orders that will result from the rise in sales that we
have seen over the years, as well as future online orders, we need to expand the
client order area. 2. Keep client orders and construction separate. 3. Rearrange the
construction materials to provide clients with easier and faster access as well as
greater loading space. The Doors & Windows showroom was relocated upstairs to
Home Improvement World. This space has been added to the Garden, allowing us to
have a furniture shop inside. The reason leroy merlin changed is because of METI,
ROI and efficiency. METI is a smaller, easier-to-communicate-with-team solution that
is considerably more nimble for our smaller BU needs. ROI- In comparison to
competing ERP systems, METI's investment and time to market were by far the most
effective for our BU. Efficiency- METI is a mechanism that allows both countries to
be under the same system. We are two countries under the same Business Unit.
Also, a more mobile and simple manner of working for our personnel.

Leroy Merlin is a french headquartered home improvement retailer and also

for the garden and inside house furnitures and equipments found in different stores
around Europe. It’s a self service company and sales assistance services. It aims to
improves your home to provide decorations, construction products, gardening and DIY
products. For interior design each client can use creativity of their dreams using
affordable products provided at the store. Leroy merlin for its special design has used
innovation meaning to understand its customers, encouraged creativity, used research
and development. It also makes DIY products which means do it yourself and it was
the first to offer free delivery service. It created long lasting relationships and added
value to both employees and customers. (Leroy Merlin 2015) On average it creates
150 jobs for local people. It assess international markets. It references regional
suppliers. Leroy Merlin is top competitor in home improvement sector. The customer
service sector is perfecting. In order to improve customer satisfaction they: interview,
research, do surveys, analyse and do recommendations. They speak to consumers
about concerns, research trends/ develop competitive analysis, distribute surveys to
understand their feelings and analyse those surveys and make conclusions from
those recommendations.

Leroy Merlin tends to give incentives for customers to return and

communicate effectively and understand customers expectations along with keeping
up with their current trends. The business has differentiated itself from its competitors
by improving customers experience creating brand awareness loyalty. They try to find
a solution for every problem by supply every project the customer needs offering the
best price and the a variety of options. Some competitors include home depot,
Praktiker, Castorama, lowe’s etc. They have a website as well most of them. Leroy
Merlin fought its problems through a well designed website beautiful of colours and
plenty of useful information. It provided incentives / rates/ free delivery etc. Leroy
Merlin has gone through international markets and has improved its website every
single day. This business has the slogan ‘’everyone everywhere’’ It supports all ages,
all professionals. They tend to buy repairs or make renovations. Due to recession
customers tend to be very sensitive when it come to prices and quality. They keep up
with their favourite company read their latest news etc.

The business need to create a journey for their customers through

entertainment by understanding customers’ expectations before their experience
occurs (Berry Carbone and Haeckel 2002) Companies strategically use this:
To create customer experience the business should recognise and analyse the clues
the company is sending to the customers. Each clue gives a precise message to the
customer. Their combination creates total customer experience. The first clue is the
functioning of the good or service the second is the emotions and the environment
and atmosphere.

Some complaints made by customers in Leroy Merlin were the following:

having to buy a shopping bag is frustrating, building a playground for kids to play
while parents shop, it was hard to find help when you needed it, the signs were
confusing to read. However, they said customers enjoyed the garden, good prices
and good quality, and Leroy Merlin feels like home. Leroy Merlin tried to improve the
complaints made by customers. It made market research (targeted surveys, asked
employees opinions). It made better environment of the store and changed the store
layout. It improved customer relationships engaged with customers and through
social media. It took new initiatives. The surveys will be done anonymous in order to
encourage more honest responses. Incentives will make customers come back to
the store. If the store provides a comfortable working environment more consumers
will be attracted such as changing the building design, displays, lighting and more.

Some people had trouble finding the departments or specific products they were
looking for. There is a solution for this. The signs are confusing them. If they are
limited they will be less confusing. The color scheme should also had to be changed
because they chose according to the colour (Porter 2012). The color can influence
how long a consumer can stay or if they will make a purchase. The colour should be
relaxing. The temperature should have been change as well. Some customers
complaint that the store was too hot. (James 2016). So Leroy Merlin changed the
temperature to be cooler. Since using ‘the word of mouth’ to inform about Leroy
Merlin store is not just enough the store has used social media such as Facebook,
Instagram, twitter, blogs and other social media apps to inform customers about
Leroy Merlin. Also, Leroy Merlin provided coupons or discounts for their next
purchase in order to promote customers to buy over and over again products from
the store. Another incentive provided by Leroy Merlin is a loyalty card in which
 customers would get specific deals after spending a certain amount of money at
Leroy Merlin.

Its logistics (materials management- flow of materials from production and

manufacturing/ input, physical distribution management -flow of finished goods
output) include the flow management of goods and services and information from
origin point to consumption. Supply chain is the process at different stage of logistics
(Gilaninia et al 2011) in the shortest possible time at the possible lowest cost (Alfonzo
and Gabrita 2015). Logistics is a complex concept with a wide variety of deisgn
implementation and control processes making the best of human and material
resources, storage and distribution of goods from raw materials into final products to
be put into shelves. It help profitability with products’ availability. Logistics are
performed in business organisation inflow internal circulation outflow of materials to
ensure the customer satisfaction. Raw materials supply chain to convert final product.
Succesful management flow of products and information chain is important where
competitors exists. It aims to produce high quality products. ADEO supply chain
started in France delivered the warehouses in Dourges, Valence and Chalons. Then
in Italy and finally in eastern Europe. There are warehouses in Italy, Leroy Merlin has
its own logistics departments. ADEO has its own logistics and transportation
shipments with containers. From Italy, 2 companies join the supply chain DHL,
Kuehne Nagel. DHL has a contract for storage and transportation from Italy to Greece
distributing to Leroy Merlin store finally to end customer. Nagel delivers to Greece
store as a back up. In Greece they receive products straight into the shelves. The
division is responsible for defective products. They receive the sales orders distribute
them with DHL to end customer return defective products to warehouses and all the
way back to ADEO suppliers.

Leroy Merlin receives questions from cashiers in order to improve customer

satisfaction and service. Sales departments and external sellers have meeting every 6
months to improve marketing and sales. PIXUS monitor invoices, orders, etc. They
ask questions such as where they live if they are thankful with the services etc. Every
six months in every Leroy Merlin store in Greece the sales and marketing department
meet in order to choose about thresholds new products and for marketing reasons.
The products from Greek shelves up to France Italian and French supplies restocking
and new product orders. PIXYS is a program. The main benefit of this company is the
speed up of delivery. It avoids monopoly even though DHL exists. It has balanced
stock There is no over or under stock through PIXYS program. The defective products
are returned back to the store and this improves customer satisfaction. It is the right
product at the right time in the right place.

ERP stands for enterprise resource planning, and it is a centralized and

unified platform that spans the entire organization and its subsidiaries. ERP
(enterprise resource planning) is a software system that connects businesses by
allowing them to plan and manage daily activities such as supply chain, services,
and financials. ERP offers enterprises a single solution from a single vendor with
integrated functionalities. It's a 'off the shelf' software that facilitates integration
supply chain, allowing companies to evaluate each other's datasets. The internet is
used as a safe platform for evaluating data. (e-commerce).

ERP is employed as a business vision with commitment and as a strong and

committed leadership. It has a well-defined set of aims and objectives. With great
leadership and managerial qualities, it is utilized as a project champion. It is
employed in the implementation of a time-phased strategy. It resulted in great project
management skills. It assembles well-balanced teams that transcend organizations
and has the requisite skills. Project teams comprised of the smartest and brightest
professionals dedicated to the project's objectives. Internally and externally,
comprehensive communication is planned. Cost planning and management are
excellent. IT infrastructure, i.e. skill preparedness, is essential. A member of the
implementation team is an ERP consultant. There is enough training and job
reorganization. There are, however, troubleshooting and crisis management abilities.

The integration of the entire supply chain, including suppliers' suppliers and
customers' customers, is one of the advantages of ERP. Furthermore, because
software communicates across all operations, what is happening in all aspects of the
business is visible. The discipline of pushing business adjustments is an effective
tool for increasing the efficiency of all sections of the firm. There is a better
operational control that will improve with time. It facilitates advanced communication
with consumers, suppliers, and others. ERP, on the other hand, does not
compensate for poor management. ERP is not a straightforward system, and not all
departments have been taught on it. Poor implementations do not yield a return on
investment.

Better customer service/better access to customer information/faster reaction

times/improved on-time delivery/improved order accuracy are all benefits of ERP.
There are also lower inventory costs. There is an increase in cash flow. Improved
inventory planning/procurement management/vendor relationship management have
all resulted in cost savings. Increased efficiencies and productivity, as well as better
visibility into all parts of the supply chain. Improved data security for businesses,
whether on-premises or in the cloud. Keeping a competitive advantage is essential.
Companies that don't have agile ERP software have a hard time reacting fast and
strategically enough to expected business disruptions. ERP software makes it easier
and faster for your team to generate numerous reports, resulting in a higher return
on investment. Without an ERP, reports that could take days to study and compile
take only minutes. Because there are less chances for errors during accounting,
increased reliability and accuracy improve overall financial management. Users can
also use forecasting tools to estimate demand, labor, and budget events. You can
design more secure budgets, timelines, and product development plans using this
information. Manufacturing is managed through ERP. They give automation and
real-time data for better decision-making, planning, and control, as well as increased
customer satisfaction.

References:

Changellenge | Cup Kazakhstan 2016 | Leroy Merlin case | 1st place (slideshare.net)
Chanzy, R., 2022. Leroy Merlin SA - Company Profile, Information, Business Description, History,
Background Information on Leroy Merlin SA. [online] Referenceforbusiness.com. Available at:
https://www.referenceforbusiness.com/history2/52/Leroy-Merlin-SA.html [Accessed 6 April 2019].

Leroy Merlin Automates Device Management (intel.com)

Chanzy, R., 2022. Leroy Merlin SA - Company Profile, Information, Business Description, History,
Background Information on Leroy Merlin SA. [online] Referenceforbusiness.com. Available at:
https://www.referenceforbusiness.com/history2/52/Leroy-Merlin-SA.html [Accessed 6 April 2019].

Business process optimization at Leroy Merlin (nfp2b.com)

What is Project Management | PMI

The making of the Leroy Merlin Kaliningrad stores interior design (artlebedev.com)

Operation Management: Definition, Importance, Decisions (iedunote.com)

Leroy Merlin runs lean in-store operations and improves cross-company

collaboration thanks to Shippeo's new "Customer Visibility" portal – Storiesout

Definition of Management, Management Functions and Elements

(bbonlinemoney.com)

Why ERP Software Is Important In 2022 | Reasons To Use ERP (selecthub.com)

Chanzy, R., 2022. Leroy Merlin SA - Company Profile, Information, Business Description, History,
Background Information on Leroy Merlin SA. [online] Referenceforbusiness.com. Available at:
https://www.referenceforbusiness.com/history2/52/Leroy-Merlin-SA.html [Accessed 6 April 2019].

Spathis 677..685 (emerald.com)

Chanzy, R., 2022. Leroy Merlin SA - Company Profile, Information, Business Description, History,
Background Information on Leroy Merlin SA. [online] Referenceforbusiness.com. Available at:
https://www.referenceforbusiness.com/history2/52/Leroy-Merlin-SA.html [Accessed 6 April 2019].

Global Supply Chain Management & Logistics - Leroy Merlin Case Study (slideshare.net)