Peak Season Chaos To Streamlined National Homeware Fulfilment Operation
OVERVIEW
Homebase, a $5Bn DIY and home décor retailer with over 270 stores and 20,000 staff, had just crashed through a $70M peak-season failure. A mismanaged furniture promotion broke the network, forcing the activation of 16 makeshift depots. These remote sites couldn’t ship to stores — only delay recovery. Inventory logic was outdated, network capacity was misused, and service collapsed.
Trigger for Intervention: A failed furniture promotion flooded the network, forcing desperate site expansions that couldn’t fulfil demand or flow product. A network reinvention was required.
THE CHALLENGE
Outdated assumptions and a reactionary depot strategy triggered widespread operational failure during peak season and, specifically, with the large-scale furniture promotion. All eyes were on results.
- Network buckled under pressure. DCs couldn’t absorb campaign volume. Temporary depots made the problem worse.
- Remotes created double-handling. These sites couldn’t pick to store. All inventory had to return to the centre, by faxed instructions!
- Outdated slotting and cube logic. TI-HI data was wrong. Storage design didn’t reflect SKU mix or replenishment flow.
- No peak planning capability. The team couldn’t model volume surges. Campaigns were driven by guesswork.
- Slow SKUs stole prime space. High-velocity items lost ground to dead stock. Volume, accession frequency and layout were disconnected.
THE APPROACH
Engaged by Rickard Johnson Management Consultants as a warehouse subject matter expert, undertook a high-profile review and solutioning project across five DCs — with a brief of no footprint expansion or new tech investment.
- Mapped 125,000 slot locations. Captured every racking profile, beam height, and access point to build a clean base.
- Reconciled WMS to physicals. Catalyst setup was reviewed slot-by-slot. Hundreds of systemic errors were corrected.
- Modelled actual capacity. Introduced a cube logic model linking demand, TI-HI, velocity, and supplier profile. Uncovered the equivalent of 250,000 ft² in surplus inventory.
- Redesigned racking and slotting. Corby facility was reengineered with asymmetrical beam settings. Planned capacity and pick-face density jumped 20%.
- Ran a Store Friendly pilot. Relocated 900 lighting SKUs (24% of total NDC cube) to Corby for singles replenishment trials. Efficiency was proven in real-time.
THE SOLUTION
Surplus stock was cleared, cube was reclaimed, and the layout was reshaped around real SKU movement.
- Recovered 250,000 ft² of floor space. Overstock was purged via multiple “10% day” promotions and returns to suppliers. Inventory was recalibrated to meet actual demand.
- Retooled racking configurations. Beam settings were optimised to unlock pedestrian picks and cube efficiency.
- Relocated bulky SKUs to Corby. Lighting was moved out of Northampton NDC, freeing capacity for fast movers.
- Proved Store Friendly Deliveries. Trials showed $1M+ in logistics upside through singles-based fulfillment in planogram sequence.
- Created forecasting and planning tools. Future peak volumes could now be simulated and staged proactively.
The answer wasn’t expansion. It was using what they already had — better.
THE OUTCOMES
Homebase regained flow, capacity, and trust — without new real estate or capex.
- Remotes were retired permanently. The core estate could now handle campaign volumes solo.
- Inventory was rebalanced and reduced. Stock dropped. Availability didn’t.
- Velocity-driven slotting was locked in. Layouts were matched to real SKU behaviour.
- Store fulfilment improved visibly. Faster lead times. Fewer errors. Happier stores.
- Campaigns became repeatable. The team could now plan and deliver, not firefight.
WHY IT MATTERS
Logistics earned back its credibility, releasing massive working capital from redesign project alone.
- Promotions no longer meant chaos. The business could absorb peak volumes without choking the system.
- $100M in working capital was released. Rapid inventory reduction came from design, not just mark downs.
- Logistics team earned back credibility. The board saw the difference. So did the stores.
CLIENT TESTIMONIAL
“Gary worked with Rickard Johnson on a series of warehouse optimisation tasks integral to a broader supply chain improvement program for Homebase under PERMIRA’s ownership. His meticulous mapping of physical storage and SKU-level analysis identified major issues in system data, overstocking, and slot inefficiencies. He proposed a new configuration of storage bin heights, supported the shift toward singles replenishment and store-friendly deliveries, and gave us a clean and accurate database for future strategy decisions. We found Gary Newbury tenacious, analytically sharp, and laser-focused on keeping the client aimed at the real problems.”
— Dr Peter Rickard, Managing Director, Rickard Johnson Management Consultants