Distribute

We distribute products efficiently to our branches and customers, allowing us to provide great product availability levels for our customers.

• Network of around 3,000 branches

• Large scale network of distribution centres supporting the plumbing and heating businesses

• High levels of product availability across a broad range of stock keeping units

Distribution network

Distribution centres are a key competitive advantage for Wolseley, allowing the Group to purchase in bulk and better serve customers through reduced delivery times, broader product selection, increased fill-rates and improved product availability, as well as enabling the Group to better manage inventory.

 

The Group has an extensive network of distribution centres which serve branches for our plumbing and heating businesses. By contrast the majority of products in our building materials businesses are delivered directly to our branches or customers.

 

Our objective is to operate the lowest cost, most efficient operating model in our industry, ensuring that our distribution activities benefit from national scale and an efficient supply chain. The Group has invested significantly in supply chain technology to manage inventory in our distribution centres and branches in order to maximise efficiency.

 

Product availability

The availability of a wide range of products to our customers is fundamental to the Wolseley business model. Our distribution network is key to allowing us to outperform the competition in this area. Each distribution centre aims to maximise the fill-rate that it achieves, which is the proportion of orders that can be fulfilled from inventory on hand at the time of order. The distribution centres operate with fill-rates that are substantially better than those we receive from our vendors, bridging the gap between vendor fill-rates and those to our branches.

 

At a branch level, product ranges are focused on the fastest moving products, with the distribution centres able to quickly deliver a wide range of other products as required. A number of our businesses offer service guarantees and next day delivery options.

 

Branches

With approximately 3,000 branches across 11 countries, Wolseley is an international business but also a local business, with the majority of the Group’s customers travelling less than 20 miles to a branch. We rely on the strength of our brands in their local markets, and the local knowledge of our employees in the branches to meet our customers’ needs.

 

Transport

The Group uses a range of transport solutions in each of its businesses including its own extensive fleet and third party delivery services. The Group uses fleet management systems and backhauling arrangements to maximise the efficiency of its transport network and minimise its environmental impact. The Group is also piloting more centralised approaches to logistics to improve efficiency. Further detail on the environmental impact of our transport requirements and actions taken to minimise CO2 emissions is available in the Responsibility section.