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Waterstone's delays its supply chain

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Waterstone's delays its supply chain

Wednesday, 02/7/2008 04:49
Waterstone's has delayed the implementation of its new supply chain as it is running behind schedule.

The bookseller's decision to delay the implementation of its supply chain has been welcomed and Gerry Johnson, the managing director of the firm, explained the decision.

"It's entirely down to a desire to test it to destruction. We are aware of the importance of getting it right and not taking any risks with it," he explained.

The move was backed by analysts, who felt it was a good commercial decision given the current economic climate.

Robert Clark, an analyst at Retail Knowledge Bank, told thebookseller.com that the delay made sense to make sure the retailer was ready for Christmas.

"Things could go badly wrong if you had untested new systems coming in place just before Christmas," he explained.

A centralised hub in Burton-Upon-Trent was set to supply the retailer's 313 stores.

But implementation will now be staggered as the new supply chain is put into stores from the beginning of the new year.

Spending on the new supply chain meant operating profit for its last financial year was relatively flat.
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