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Company Overview: Leroy Merlin DIY

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  1. Presentation of Leroy Merlin
  2. Activities of Leroy Merlin
  3. The current state layout
    1. Purchase Process
    2. Sales Process
    3. Organisation of the store
  4. Application of JIT at Leroy Merlin Tourcoing
  5. Recommendations (implementation plan)
    1. Appropriate resource levels
    2. Systems and procedures
    3. Organisation and structure
    4. Business and customer needs

Leroy Merlin sells ?do-it-yourself products? in 13 different domains including painting, sanitary equipment, gardening, etc. The Leroy Merlin group is the sixth leading group in the world in this sector with an increase in turnover from 2654 million euros in 1998 to 4088 million euros in 2002.

The Tourcoing Leroy Merlin store was created in 1984 and expanded in 1995. It is composed of 10 managers, with one store director named Didier Marchez, one control manager Isabelle Staes, and eight sector managers responsible for from one to three areas.

Moreover, the store offers 40,000 references spread across the 13 areas and achieves a turnover of 25 million euros, thus ranking 60th among the 80 Leroy Merlin stores in France. With its 10,000m² area, it is positioned 30th in comparison to the other Leroy Merlin stores in France.

Leroy Merlin has got various competitors which are:

?Its main competitors are the ?Hard Discounters' which offer varying low prices.In 2002 a ?Brico-Dépot? store set up operations in front of Leroy Merlin Tourcoing that provoked a decrease in the latter's turnover. Faced with this problem, it responded by offering more competitive prices, a fidelity card and a wider range of products, for example, in its decoration area which doesn't exist in the portfolio of Hard Discounters.

?Castorama: It figures among the main competitors of Leroy Merlin. Leroy Merlin offers a more diverse furnishings department than Castorama and offers a complete range of products If a customer wants to change his bathroom, he can find all necessary accessories, for example, tiled floor, a wall paper, a soap dish, etc.

?Bricorama, Mr Bricolage: They are also competitors of close proximity but they are smaller than Leroy Merlin.

[...] Leroy Merlin should increase its number of warehouses and make them closer to the store in order to increase the order speed and decrease the time of delivery. This process would be more efficient because Leroy Merlin, instead of implementing huge orders for many products, can order more often the products they need and which are in low stocks (because these products will be sold quickly and Leroy Merlin doesn't need to stock them often). In effect, it wouldn't take a long time to order a product. [...]


[...] Leroy Merlin offers a more diverse furnishings department than Castorama and offers a complete range of products If a customer wants to change his bathroom, he can find all necessary accessories, for example, tiled floor, a wall paper, a soap dish, etc. Bricorama, Mr Bricolage: They are also competitors of close proximity but they are smaller than Leroy Merlin. Caracteristics of Leroy Merlin Tourcoing Different elements which characterize Leroy Merlin Tourcoing are: Tourcoing enjoys a positive geographical vantage point as it is located near the Belgian border. [...]


[...] At the moment, Leroy Merlin Tourcoing counts discrepancies in its accountancy by passing a loss and by passing a countable provision. Maybe they should find ?physical? solutions to suppress them (reinforcing the procedures of delivery to ensure that it really receives what it paid for) Business and customer needs Business needs. The implementation of JIT would question again the philosophy of the store for different reasons: The philosophy of Leroy Merlin revolves around having sufficient stocks to always satisfy the customer. [...]

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