This document provides an overview of various projects underway at Menzies Distribution to modernize operations and prepare the company for the future. It discusses projects to improve the efficiency of magazine packing, rationalize the branch network, simplify processes with a major customer, expand recycling efforts across the company, and win new contracts. The projects aim to enhance business performance through forward-thinking changes.
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1. Quietly brilliant
Are you in-the-know about the projects transforming Menzies?
Issue 31
November 2014
2. This issue of M is a testament to progress and
specifically, to our often unheralded progress in
equipping Menzies Distribution for the future.
Its too easy for us to think of what we do as simply
the day-to-day when in fact, how we work now
would have been unrecognisable a decade ago. In
our feature article, we shine a light on the crucial
change projects which while often under-the-radar,
are helping us develop new and better answers to
our problems.
We can also see evidence of the steps Distribution
has taken to make our work sustainable, in the
new recycling system which is being rolled out
across our network. Companies in our line of
work arent often seen as Green, but projects
like this one have helped us become something
of an oddity: a transport business which has won
three consecutive Carbon Trust Standards. Its
an accolade which has important benefits for our
brand, making our shares more attractive to the
ethical investor groups which exert a growing
influence in the markets.
Finally, we can see the benefits of a progressive
attitude to higher-education partnerships. Our
business has benefited from process-modelling
expertise which would ordinarily command a
healthy price-tag, in exchange for giving some
very bright people a chance to cut their teeth in the
business world. Its been a great experience, and
one Id be happy for us to seize again in future.
In each of these examples, forward-thinking has
led to forward-movement for Menzies Distribution.
Its a principle which will be central to our future
success.
Page 2
IMS cites Mixed performance
Latest News
John Menzies Plc issued an
Interim Management Statement
to the London Stock Exchange on
5 November, in which it provided
an update on trading and senior
management changes within the
company.
While Menzies Distribution was
described as delivering in line with
expectations, the statement noted
a mixed performance inAviation,
characterised by contract wins in key
areas, but losses and downturns in
others.
Significant operational issues at
Heathrow would impact 2014 and
2015 profits, the statement confirmed.
It was also announced that, following
his resignation inAugust, Craig
Smyth would leave the company with
immediate effect.
In a message to employees, Jeremy
Stafford, CEO said:
Over the coming months we will
be addressing the current areas of
under-performance in our business
and we will be reviewing our strategic,
operational and investment plans to
help us maximise the opportunities
which exist in the marketplace.
Forsyth Black, Managing Director
Tote Box triumph for Menzies
Anew Menzies Distribution scheme
designed to keep more Totes Boxes
in circulation has been praised
by news-industry journal Retail
Newsagent, as latest figures showed
that missing box levels had fallen by
62% from their highest points.
Under the programme, retailers are
sent notice of the totes they have
been delivered but are yet to return.
A贈12 charge is applied for boxes
which remain unreturned after 3
weeks, although those which are later
returned trigger a refund.
Before the Tote charging programme
began, we estimated that 10% of our
total box reserves were unaccounted
for, explained Jim Ross, General
Manager Central Operations.
When so many boxes are missing,
it becomes increasing difficult for
us to send all supplies out properly
protected. To see such a dramatic
reduction in missing supplies since
beginning the programme and
for the value of our work to be
recognised across the industry is
very encouraging.
The Tote charging scheme has encouranged customers to return more boxes
3. Issue 31 November 2014
Page 3
Red Bins turn Menzies Green
Menzies Distribution has completed
the roll-out of a new recycling system,
built around a range of instantly-
recognisable Red Bins, which will
play a major role in helping the
company reach 0% landfill operation
by 2017.
At the beginning of 2010, a period
in which Menzies Distribution only
recycled 19% of our general waste,
we began work to reduce the amount
being sent to landfill, said John
Tucker, Facilities Manager.
Four years on, we now recycle 70%
of general waste and a further 17%
is converted into fuel by a process
known as RDF.
The Red Bin initiative is the next step
in the companys journey toward
eliminating landfill waste altogether.
While much of our focus has been
on the warehouse area until now, our
Red Bins bring a new approach to the
office environment as well.
The process was introduced in
Edinburgh Park near the end of
2010, explained John.
It was initially met with some
resistance, as desk bins were
removed and we asked all staff
to take their waste directly to the
recycling bins; however, people soon
got used to the new system and
embraced it.
Were confident the rest of our
network will do the same, helping us
eat into the remaining 13% of our
waste which still ends up at landfill.
To support the rollout a new FAQ
service, Ask Emma, has been
launched on the Menzies Distribution
Intranet covering the dos and donts
of recycling.
Update
The WestJet-set
Menzies Aviation has been awarded a long-
term contract by WestJet, a low-cost carrier and
Canadas second-largest airline, to provide
ground-handling services in Toronto from 1
November 2014.
The agreement will see Aviation handle
approximately 36,000 turns per annum, the
largest outsourced ground handling contract in the
Canadian market.
Aviation hits 150
Menzies Aviations American subsidiary, Simplicity,
has won its first domestic contract with US giant
United Airlines - a deal which marks a milestone
for the Aviation division as a whole.
When the agreement comes into force on 4
December in Denver, our new base there will
become the 150th station in the companys
network; in addition, it will be the largest, handling
300+ turns - an industry term for receiving a
plane, unloading it and preparing it to depart on its
next flight - every day.
Simplicity revenue has grown 1000% in a year
WestJet flies to 91 locations across the world.
New initiative puts company on target for recycling milestone
Each unit has two containers:
A Red lidded bin for
recycling
A Grey lidded bin for
general waste
The Red one is for:
Papers and magazines
Card and cardboard
Empty cans and tins
Empty plastic bottles
Clean, empty plastic items
The Grey one is for:
Used paper towels
Crisp packets and sweet
wrappers
Leftover food and drink
All polystyrene
Plastic bags and wrappers
Using the Red Bin System
Visit http://menziesintranet/recycling_qanda.htm to find out more.
4. Page 5Page 4
Issue 31 November 2014
In a company as large as ours, it can often seem that Business as usual is the order of the day we
do similar things, in similar ways, over long periods of time to deliver profits. However, scratch beneath
the surface and it becomes clear that a host of initiatives are ongoing at any one time, all aiming to
improve the way our business works.
Progressive Thinking
Continuous Pack
Business Efficiency Project
Project Eagle
Network Rationalisation
WHS Simplification
Customer Project
Packing Worklist 2
Technical Project
SEPA
Compliance Project
Amazon
New Business Project
Our HS packing system is industry-
leading, but it still had limitations:
titles couldnt be added to a pack
once it had begun, which meant a
long wait until the next packing cycle
and wasted space inside customer
Tote boxes.
The Continuous Pack process
sought to solve this problem. Led by
the CI team and involving delegates
from IT, the branch network, Central
Ops and even HS themselves,
the project successfully mapped
out changes to the software and
procedures involved in HS packing.
The new approach allows us to
add new titles during the HS pack
process, resulting in fewer separate
packs and reduced requirement
for Tote boxes. At present, the
new process is being tested and
improved in Preston and Maidstone,
to ensure it is smooth and robust
enough to merit a wider rollout
across the estate.
Project Eagle was part of our
ongoing effort to keep our business
efficient by changing the network.
March SEL and Bow became a
spoke of our Maidstone hub
April Bangor closed and
customers were moved to Rhyl
June Scarborough closed and
customers were moved to either
York or Hull
June Dumfries closed and
customers were moved to either
Carlisle, Preston, Linwood or
Irvine
July - Scunthorpe closed and
customers were moved to either
York or Hull
October - Ipswich, Chelmsford
and Norwich became spokes of
our Maidstone hub.
While a portion of these changes
resulted in some redundancies, they
will help ensure that our supply chain
is sustainable for the future.
When receiving magazine deliveries,
stores have to count each title to
track deliveries and claim missing
copy. This leaves a lot of room
for manual error and can be time
consuming for customers and for us.
Our own checks are carried out via
the HS and Track & Trace systems,
producing much more accurate
results than counting at the stores.
We approached WHS and agreed a
new, simplified process: stores now
only identify the title and the box it
was missing from, with our systems
filling in the details.
The new process will reduce claims
and save time for both companies.
The project team are currently
piloting the scheme in Swansea,
with the aim of rolling out to all WHS
stores by early 2015.
In recent years, weve worked to
give extra flexibility to our packing
teams by providing the ability for
a Hub branch to send magazine
supplies to one of its Spokes a
great function for sharing workloads
if need be.
However, certain specialist products
could not be shared this way: Multi-
Variants (special versions of a title
assigned to a particular group of
customers) and titles with VATable
elements (which are uncommon
amongst magazines).
A specialist project team drawn
from IT and Central Ops analysed
the problem, and developed a new
software solution. The effects of their
work are now being felt in Maidstone,
Preston, their associated spokes
- and in the central teams which
support the branches (where its now
far easier to resolve queries). The
software will be rolled out across our
estate in the next few weeks.
After new guidelines were released
by the European Central Bank,
Menzies Distribution had to convert
all customer and supplier bank
account numbers and sort codes to
IBAN and BIC by 1 February 2014
in order to comply with SEPA (Single
Euro Payments Area).
Without the change, all EURO
payments and receipts made
through Direct Debits or Credit
Transfers would have been rejected
and with approximately 1.5m
electronic weekly receipts, it was
essential to get right.
IT and Finance teams, alongside
external SAP consultants, co-
operated extensively to adapt our
SAP system and Finance business
processes.
The team had to work hard through
the festive period last year, but
they successfully hit the crucial 1st
February deadline.
When an exciting opportunity arose
to partner with Amazon, the Central
Operations and MLS teams pitched
and won a contract for Menzies
Distribution to deliver parcels on
behalf of the online giant.
The new contract not only makes
use of our depot facilities, but our
existing skills in delivering fast.
This move represents one of
the first major steps to diversify
Menzies Distribution into a logistics
company who can deliver more than
magazines and newspapers. Hard
work from operations staff has meant
that we now work with Amazon
across a number of regions.
By 31 December, over 100 change projects will have been delivered across Menzies Distribution in
2014, over and above the day job which were busy performing. In this feature, we profile six major
examples of our Project culture underlining how crucial the drive to make things better is to our work.
5. Cary Martin, Edinburgh Park
Carys nominator praised her willingness
to take on additional responsibility during
a two-month period when the Business
Intelligence department was seriously
impacted by illness.
Asked to adopt additional duties, Cary
actually exceeded her new brief: she
produced analysis documents which
helped improve the process and controls
within the area; enhanced documentation
of processes so that any future absences
could be more easily covered; and
produced daily summaries of progress
which greatly assisted the rest of the team.
All in all, Cary demonstrated an attitude
that allowed us to manage what was
a difficult situation and in my mind
encapsulated a SPIRIT mentality, read
the text of her nomination.
Stepping into a challenging situation
without a word of complaint, then over-
performing drew great admiration from
the judging panel, who were delighted to
present Cary with a SPIRIT Reward.
Shaun Reynolds, BP Travel
Marketing
A remarkable piece of creativity which
exemplifies Shauns innovative approach
was enough to earn him a place amongst
this months SPIRIT Reward winners.
Shauns nominator described how he
seized on the idea of taking a fundraising
event which was happening in their office
a fancy-dress day and turning it into an
email sales pitch.
IT WORKED! they wrote enthusiastically.
Always thinking outside the box, we can
learn a lot from Shaun.
Shaun also earned praise for his approach
and willingness to collaborate in order to
get the best results for the company.
Shaun regularly goes above and beyond
his role to support both sales and client
services, outside of his own job spec and
never complains, read a key line of his
nomination.
Karen Riley, Sheffield CS Centre
Against the background of the companys
recent decision to close the Sheffield
Customer Service Centre, an emotional
nomination from within the team praised
Karens empathy and professionalism
during an extremely difficult consultation
period.
She delivered a distressing message
to all the management team in such a
supportive way; even when there were
tears and confusion she stayed strong and
was there for each and every one of us,
wrote Karens nominator. She then went
out on to the centre floor and delivered
the news to her team bravely, and with
so much empathy and compassion that I
doubt many people would have been able
to match her.
The nomination went on to thank Karen
for the time she took with each and every
team member who wanted to discuss the
situation and ask questions, putting aside
her personal feelings to place her team
first.
For her to do so while the consultation
period is happening shows how much of
an inspiration she is and how much she
values her staff, read the closing line of
the submission.
The judges believe that in putting her team
first despite personal worries, giving freely
and generously of her time to help them
through consultation, and displaying great
empathy in trying circumstances Karen
has given an exemplary and inspirational
performance. This SPIRIT Reward is a
clear indication of how highly she is valued
by the team she led with distinction.
Page 6
SPIRIT Rewards: September winners
In the Menzies Family, were used to working with great people -
but we dont tell them theyre great as often as we should.
Help us put that right by telling us about one of your colleagues who deserves that
special recognition. Just fill in the form below, fold and seal it, then pop it in the
post.
Rewards
Service
First, tick the value(s) which you think
your colleague has excelled against.
We focus on what is important to our customers
We strive to be excellent, not just good
We take responsibility for delivering great service
We treat people with respect
We are supportive and encouraging
We are open, honest and constructive
People
Innovation
We always look for a creative and better way
We see the opportunity, not just the risk
We initiate and embrace change
Recognition
We always praise a job well done
We appreciate the contribution that everyone makes
We celebrate our success
Inspiration
We encourage each other to excel
We display our passion and positivity
We lead by example
Teamwork
We are committed to working together to succeed
We play to everyones strengths
We work towards a common goal
Next, tell us what your colleague has
done that makes you want to nominate
them. What makes it - and them -
special?
(Tell us who they are, what they do and where they work.)
Im nominating:
Please also tell us your name:
(Your nomination is anonymous, but we might need to get in touch - for instance if your form is damaged)
Spirit rewards nomination form with Postage.indd 1
09/01/2014 14:27:50
Image: Karen Riley was highly praised by her team
6. Page 7
Issue 31 November 2014
A partnership between Menzies
Distribution and The University of
Strathclyde which brought student
expertise into our business has been
hailed as a success by managers from our
branch network.
Grant Keogh, Distribution Centre Manager
at Linwood, described the results of a
project carried out by a student team
as very insightful and beneficial and is
keen to implement the proposals they
presented.
The project emerged from a realisation by
Naveen Kumar, Continuous Improvement
Engineer, that an opportunity existed to
involve postgraduate specialists in our
work to analyse and improve the branch
packing process.
Naveen, who is nearing the end of a two
and a half year secondment from the
university himself, concluded that working
with students would not only provide extra
resource but a fresh perspective. After
winning support for the idea within the
business, he set about selecting the right
candidates, ultimately recruiting Rodriques
JohnPeter and Pulkit Vijayvargiya.
I chose Rodriques and Pulkit for their
experience of working in manufacturing
environments, explained Naveen, and
for their awareness of Lean Thinking and
Six Sigma techniques, which are highly
sought-after skill sets designed to develop
business process.
The CI team set Rodriques and Pulkit to
work on an 11 week initiative at Linwood
branch, with Naveen overseeing the
project. They immersed themselves in
day-to-day processes in order to fully
understand how everything worked,
and the challenges that can impact
performance. After two weeks the pair
were ready to present their findings and
put together several solutions to some
of the performance issues that they had
identified.
By using our training to assess the
packing performance, we were able to
identify some small changes to processes
that could significantly improve the packing
process if rolled out across the business,
Rodriques said.
Pulkit continued: For example, after
monitoring the movements of staff during
a night pack, we identified that simply
changing the layout of the warehouse
cages and packing areas could save
time and make the packing process more
efficient.
As well as expertise, the students had
the time to dedicate to the project that we
dont necessarily have here at the branch,
Grant Keogh explained.
This made the project doubly beneficial.
Were looking forward to seeing their ideas
put into practice.
Due to the success of the partnership
with The University of Strathclyde, the CI
team are keen maintain the relationship for
future Knowledge Transfer programmes,
and have even rekindled a previous
relationship with Heriot Watt University in
the last month when thirty students from
the Marketing Logistics course visited
Newbridge branch to see how we do
things.
Developing relationships with universities
can be hugely beneficial for the business,
said Naveen.
There are always opportunities to bring
students in to work on projects that we
might not be able to dedicate the time to
or could do with that additional insight or
expertise. With clearly defined objectives
and by identifying the right students with
the right skill sets, this can be done across
any business area from operations, IT,
finance to marketing - just to name a few.
If you are working on a project that you
think could benefit from student support,
contact Naveen Kumar at Naveen.
Kumar@menziesdistribution.com or Jim
Ross at Jim.Ross@menziesdistribution.
com to discuss your project objectives.
University Challenge
Image (from left to right): Pulkit Vijayvargiya, Jim Ross, Naveen Kumar and Rodriques JohnPeter
7. Competition Community News
Congratulations on 40 years!
On 4th November Sandra Watson, Material
Master Assistant at Edinburgh Park, celebrated
her 40 year anniversary with Menzies
Distribution.
Sandras career with Menzies began in 1974 at
our old Roseburn offices as a Purchase Ledger
Clerk; her Mum also worked in the canteen. In
the early 90s Sandra transferred to South Gyle
branch followed by Newbridge branch. In 2000,
Jacqui Anderson asked Sandra to join her
team at Edinburgh Park where she has been
working since, expanding her knowledge to
cover the material master role.
Page 8
Menzies Distribution,
2 Lochside Avenue,
Edinburgh Park,
Edinburgh,
EH12 9DJ
Newbridge Branch
Tel.: 0131 467 8070
Fax: 0131 469 4797
Sharewatch
340p
Front Cover New Partnership
This month Menzies Distribution and
RetailerSaver.com launched their new
partnership.
The agreement sees Menzies
Distribution manage the nationwide
warehousing and fulfilment of products
and stock for ReatailerSaver.com, as
well as the delivery of these products to
stores across the country.
MarketCap:贈208.41m
12 month high: 838.50p
12 month low: 312.00p
For your chance to win 贈50 worth of
gift vouchers, tell us: By December
31st, how many projects will have been
delivered across Menizes Distribution in
2014?
Send your answers before the
next issue to communications@
menziesdistribution.com; or write to us at:
Communications Team
Menzies Distribution
2 Lochside Avenue
Edinburgh Park
Edinburgh, EH12 9DJ
The winner will be drawn at random
from all the correct answers we receive.
Win 贈50 gift
voucher
Last months
winner!
Were pleased to announce that Anita
Childerson at Leeds Branch, has won
our competition and will receive a 贈50
Love2Shop voucher.
Anitas winning answer was July, to the
question: Which month did Sheffield
Branch start operating cross-docking?
Well done Anita, you are our 贈50
voucher winner!
7thNovember2014
Jacqui, Material Master Manager, said, Through her experience, Sandra has built
up a vast knowledge of Menzies Distribution as well as being conscientious, caring
and hardworking - shes an absolute pleasure to work with. Wed like to say a huge
congratulations on this milestone to one of a kind.
Silver stars welcomed to 25 Club
The class of 2014 was inducted to Menzies Distributions 25 Club this month with
each new member being presented with a watch to commemorate the achievement.
Those able to attend were treated to an exclusive lunch at Edinburghs Kyloe
restaurant. Congratulations to all who have reached the milestone!
James Brown
David Butler
Elizabeth Carlin
David Catton
Roy Dixon
Kevin Ellison
Robert Ferguson
Johnathan Foster
Andrew Howie
Marty Kelly
John Kennedy
Neil Kerr
Ronald Lewis
Marguerite McAuley
AnthonyMcDonald
Robert McGowan
Anthony Meade
Gino Neviani
Richard Parker
James Paterson
Richard Sayers
Andrew Smellie
Emma Stanbridge
Alan Turnbull
James Vickers
Nicola Watt
Euan Whitehead
Donald Wilson