Annual Report 2010   RUS

Strategic Efficiency Programme

X5’s Strategic Efficiency Programme is a multi-year initiative to drive operational excellence in line with international benchmarks. Covering virtually every area of X5’s operations, it has made good progress in 2010:

Integrated Supply Chain Management: A well-developed logistics infrastructure is vital to maintain efficient retail operations and ensure sustainable growth. During 2010, X5 made substantial progress in upgrading its supply chain management system, enhancing the efficiency of its operations and strengthening the Company’s competitive advantages. read more

IT Systems Transformation: X5 successfully installed and fully integrated SAP for Retail and SAP for HR. SAP for Enterprise Management has been tested and will be fully launched by the end of 2011. read more

In-Store Labour Productivity Improvement: After considerable groundwork to fully integrate SAP and increase logistics centralisation, we are now positioned to increase our focus on productivity gains at the store level. read more

Asset Efficiency: X5’s energy savings programme is an important part of its overall strategic efficiency initiatives. In addition to providing economic benefits, it is the responsible thing to do. By the end of 2012, we plan to bring X5 energy consumption level per sq.m. closer to global standards. read more

Business Processes Improvement: X5 is moving to a more coordinated management approach for key business processes throughout the Company. Legal structure optimisation plays an important role in transforming X5 into an efficient and agile organisation.