GNS announces cessation of cash and carry business
GNS today announced to newsagents the cessation of its cash and carry business. As I covered here in a comprehensive piece recently, this is one of several important changes the business needs to urgently make to remain relevant.
Here is today’s announcement:
Over the past few months, we at GNS have been constantly reviewing our business model with respect to our service capacity and processing efficiency around the Cash & Carry service. Mid last financial year, GNS successfully implemented a transition of service change from Cash & Carry to a formal ‘Pick Up & Pay’ service in our Perth operation centre. This service protected the C&C price for customers, but made way for important warehouse logistics changes to better drive efficiencies.
Whilst the Cash & Carry model has been effective in the past, its relevance and efficiency has declined as the market has declined, hence calling for significant change in order to allow GNS to continue providing a compelling value proposition and true wholesaler benefits to our market.
Consequently, after months of further analysis and review, GNS would like to formally advise our customers that the current Cash & Carry service in Sydney, Melbourne and Brisbane will cease on the 18th September 2016 and be replaced by a formal ‘Pick Up & Pay’ service. In the coming weeks, we will provide further information around the changes and important aspects of the procedures to facilitate the transition. We will also be arranging a final Cash & Carry warehouse clearance sale in all eastern states on the weekend of the 17th and 18th September, so stay tuned for more details.
This service transition will enable the commencement of important logistic changes over the next 12 months, that will improve our main pick-and-deliver service, which makes up the majority of our wholesale activity. These changes include:
- The introduction of a new warehouse inventory management system which will include warehouse relays based on product movement, automated receiving on PDA to improve inventory flow for sale of goods, PDA stocktakes to increase the volume of inventory verification checking, and pick location scanning and PDA replenishment to improve processing accuracy.
- Implementation of a customer showroom that provides support in the way of product knowledge, sales opportunities and a meeting place for industry benchmarking.
- Commencement of system centralisation to establish a national approach to our customer account management, WMS system processes and central customer reporting, such as consolidated national customer statements.
We understand that for some customers, a transition from Cash & Carry to ‘Pick Up & Pay’ can be uncomfortable. This is not a small undertaking and this level of change is not easy, but it is absolutely necessary for our business if we are to stay focused on building and improving our service.
In the coming months, you will start to see these key tasks kick-off. As part of the project, we’re committed to keeping you informed and involved as we implement these improvements. We will provide regular communication to ensure you know what’s going on.