1. What is the most radical step you have taken to transform your supply chain over the past twelve months? After a lot of deliberation we have opened a small DC in the USA for Karen Millen and Coast. Because US stock for us is unique (it is labelled differently), it makes sense to position it over there, for local allocation and replenishment, and also to ship a proportion of it direct from Far East rather than via our global DC in UK. For the full interview, please click here: http://www.wbresearch.com/logiconeurope/aurorafashions.aspx

1. Exclusive Interview with David Roberts, Distribution Director, Aurora Fashions
David Roberts is the Distribution Director for Aurora Fashions.
1. What is the most radical step you have taken to transform your supply chain over the
past twelve months?
After a lot of deliberation we have opened a small DC in the USA for Karen Millen and Coast.
Because US stock for us is unique (it is labelled differently), it makes sense to position it over
there, for local allocation and replenishment, and also to ship a proportion of it direct from Far
East rather than via our global DC in UK.
The benefit is that not only will this get stock to stores sooner, in line with UK stock timings, but it
will also enable more stock to get to the right stores in the right time frame. It further facilitates the
set up of a US-based ecommerce marketing and fulfilment operation, which will increase brand
awareness across a much broader geographical spectrum than our limited store footprint allows.
2. What were you looking to achieve and were your objectives met?
It is too early to comment on the hoped-for impact on store sales and profitability, but the intention
is to both drive higher sales through existing stores both through better availability and through
improved brand awareness via the ecommerce channel. At the same time, ecommerce should
drive its own non-competing sales and profits.
3. Competition between FMCG / retail companies is increasingly being viewed as supply
chain competing against supply chain. What do you feel helps your supply chain stand out
from the supply chains of other companies within the industry?
We believe that our global DC in the UK is very tight, efficient and responsive, and that our
sensible level of hanging garment automation supports our ability to be flexible and responsive at
very competitive unit costs.

2. Because we manage the supply chain for 4 major high volume brands, in many different markets,
we also have to focus on solutions that do not proliferate stock around the World, whilst still
achieving objectives in availability, speed to market, etc. Hence we look at cross docking, pick to
zero, and other stockless solutions. We also look to fulfil ecommerce orders form as few locations
as possible.
4. What are your top three supply chain priorities for 2011 and why?
· Reduce the amount of inbound air freight, by exercising more influence over buyers and
suppliers. Given that air freight is 10 times as expensive as sea freight, any movement in the right
direction has a high impact.
· Increase from the current low but steady level, shipments direct from supplier to end user
international franchise partner stores. At the same time, add more value to this process by picking
and packing at store level, at origin, rather than at regional or country level. This will cut costs,
improve margins both for brands and for partners, get products to market quicker, and reduce
carbon footprint.
· Sustain, and drive further forward, current improvements in end to end supply chain visibility and
forecasting, using both better systems and improved processes. This has a very beneficial impact
on planning, and consequently on DC costs and store stock availability.
5. What are the key supply chain trends you see emerging across the industry over the
next five years?
A trend towards a move of production away from China, as a consequence of the various issues
that are emerging in this source. However, the only other truly high volume source, India, still has
a lot to do to in both product and supply chain to make it truly an alternative to China.
An increase in the ethical trading agenda, with a consequent move away from “fast fashion” to
more sustainable pricing that rewards all stakeholders adequately.
An increased focus on managing inbound and outbound transportation methods, to balance cost
and service, whilst meeting environmental concerns. This needs to be combined with improved
and to end visibility, through using technology effectively.
6. What are your top reasons for attending LogiCon
To hear how other companies are evolving SCM solutions
To learn about best practice.
7. In your opinion, which are the top three companies from the following categories:
I have no opinions in this area, as I no not use any 3PLs on a very wide scale, not do I use any
supply chain consultants or specify much new software.