How a company like Leroy Merlin can reconcile “increase in profit” and “just in time” method?

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Mathlouti Farid Mémoire session 2008

Summary

I. Presentation of Leroy Merlin

II. Activities of Leroy Merlin

III. The current state layout

a. Purchase Process

b. Sales Process

c. Organisation of the store

IV. Application of “Just In Time” at Leroy Merlin Strasbourg

V. Recommendations (implementation plan)

a. Appropriate resource levels

b. Systems and procedures

c. Organisation and structure

d. Business and customer needs.

VI. Conclusion
I. Presentation of Leroy Merlin

Leroy Merlin sells “do-it-yourself products” in 13 different areas like painting, sanitary, materials…
The Leroy Merlin group is the 6th in the world in this sector. 4

Its turnover increased as we can see on the graphic below from 2654 millions of euros in 1998 to 4088 millions of euros in 2002.

The turnover evolution

The number of stores

The number of stores has got an annual average growth target of 15%.

Leroy Merlin of Strasbourg

The Strasbourg Leroy Merlin store was created in 1986 and expanded. It is composed of 7 managers whose one director of the store named Frederic Despas, one manager control Fares Benguirech, and 8 sector managers responsible for from 1 to 3 areas.

Moreover, the store offers 90 000 references spread around the 13 areas and achieves a turnover of 25 millions euros. Thus, it is the 40th in the 80 Leroy Merlin stores in France. By its 6500m², it is 50th comparing to the other Leroy Merlin stores in France.

Its competitors

Leroy Merlin has got various competitors which are:

• Its main competitors are the « Hard Discounters » which offer price vary low. In 2008 a « Brico-Dépôt » store has settled in front of Leroy Merlin La Vigie, that is provoked a