Posted by: LCP Consulting Thursday 4 February 2016 16.35

Sainsbury’s has hit the headlines this week for finally buying the Home Retail Group for £1.3bn. Analysts reported widely in January that Argos, part of Home, were the main attraction because of its innovative ‘Hub & Spoke’ supply chain solution (something that LCP has played a huge role in). 

RBC pointed out in the Financial Times (FT) that Argos’s delivery capabilities are more ‘competitive than Amazon’ as it operates a ‘Hub & Spoke’ system of stores, which allows it to restock items in its stores very quickly. It has increased the number of items it offers to more than 50,000 to compete with Amazon.

Also in January, Sainsbury's told Reuters that a deal with the Home Retail Group could enable "fast, flexible and reliable delivery to store or to home across a wide range of food and non-food products".

LCP is obviously delighted by this news and all the media attention around ‘Hub & Spoke’. Working with Argos, LCP has helped create a truly customer-driven supply chain that enables the delivery of a radical new customer promise:  same day delivery or store collection on a range of items, and next-day fulfilment on many more.

Working with Argos over three years LCP helped shape the supply strategy, refine the ‘Hub & Spoke’ model through a large scale pilot, and implement the largest change programme the organisation has ever undergone.