The retailer has agreed -- subject to due diligence -- to acquire a suite of i2 supply-chain software solutions for retailers, with the three-year agreement giving Woolworths the ability to further develop the solution for its specific needs. Woolworths already uses i2's demand and replenishment management software.
As a part of the Project Refresh initiative, which has entered its second phase, the supermarket chain is focussing on reducing "the cost of doing business as a percentage of sales" through supply chain optimisation and has snapped up a solution from existing supplier i2 Technologies. The company aims to save AU$5 billion in operating costs a year through Project Refresh by investing AU$1 billion in optimisation systems and procedures.
It's hoped the new management software will help optimise the movement of inventory, reduce lead times, costs, transport and inventory, with tie-ins to supply chain event monitoring and management, order management, reporting and analytics.
Woolworths has already invested in supply chain technology, deploying a webMethods solution to reduce the number of orders placed by phone and fax, which at the end of last year accounted for 62 percent of all transactions.
At the time, Rob Fitzpatrick, international director, Retail and Consumer Products, webMethods said the situation seemed "anachronistic in this day and age".
"It requires extraordinary duplication of effort because orders need to be re-keyed by people all along the chain," added Fitzpatrick.
