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Technology and Innovation

By January 1, 2021April 28th, 2021EXIST

Based at Exeter Gateway Business Park, The Regional Distribution Centre (RDC) was the culmination of a fifteen month build programme, following a £55 million investment from Lidl.

Mark Henry is regional director for Lidl, with responsibility for the new RDC as well as overseeing the 50 plus stores which are currently served by the centre.

Tell us about your average day?

The customer is at the heart of what we do and it is my responsibility to ensure that we operate effectively in and around the South West, to meet our customers’ expectations. One moment I can be at one of our Welcome Events, greeting new colleagues who are joining the team, the next I’ll be at one of our stores, such as Torquay (currently the most successful in the country) supporting the team in their day-today operations and seeing first-hand the challenges they face.

Retail is fast paced and I am responsible for ensuring that we work together as one team, all heading in the same direction: creating the best possible customer satisfaction.

What do you wish other people knew about your work?

Our business model. Loyal Lidl customers really get it and are brilliant brand advocates; however, if someone has never shopped with us they might not understand exactly how we are able to offer such great value, which can often lead to misconceptions. We focus on simplicity, efficiency, and agility, all of which help to drive the business. Consider, for example, that every single product stocked by a retailer has various costs associated with it, from sourcing and packaging to branding and shelf-space. So, by having a more defined range (2,000 products compared to approx. 40,000 at a superstore), we can make savings which then get passed straight back to the customer through the price of the product. It also means that our buying teams can go to great lengths to control the quality of the products that they are sourcing. Our own-brand tomato ketchup is a great example. Despite being a third of the price of its branded equivalent, it has a higher proportion of real tomatoes, demonstrating how our economies of scale work best.

What changes have you seen as tech has advanced? e.g. AI / robotics…

Technology has changed in all aspects of construction in recent years. For example, 3D Building Information modelling (BIM) allows the design to be explored in depth before construction, which helped to make the 15-month build programme even more efficient. Within our building we opted for LED lighting and as much natural light as possible, controlled together by an intelligent integrated Building Management System. Further developments in the refrigeration heat recovery and underfloor heating systems have been implemented in the Distribution Centre to reduce energy consumption. Electric vehicle charging points are also available to visitors and employees in our carpark, encouraging the use of more environmentally friendly vehicles.

Whilst advances in technology have clear benefits in optimising efficiencies, we firmly believe that our people are our best assets, and are able to carry out specific tasks, particularly where cognitive power is required, that robotics simply isn’t capable of. As an example, our customers do not always buy the same products, and fluctuations in weekly shops mean that the distribution centre is constantly picking different products in different cases every day. Whilst there is technology to handle this, we believe in the power of people to carry out these tasks most effectively.

What was the total investment made in the centre?

There’s been a huge investment from the business in construction, recruitment, equipment, and training, to support our employees so that we were able to hit the ground running. This represents a £55m investment, but is just one part of our commitment to the South West. In addition, over half of our store estate in the South West is being regenerated this year, and we have contracts confirmed with 14 suppliers in the area, which will be worth a total of £100m over the next five years.

A product comes into the distribution centre, and then…

Why Exeter? I was born in Cornwall, so to be able to come back home and work in the South West was too good an opportunity to miss. I live with my wife and two children in Newton Abbot, which is fantastic. You are 20 minutes from the sea, the moor, the cities of Plymouth and Exeter, as well as having the convenience of Newton Abbot itself. However, I must confess that the jam still gets spread on my scone first.