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2016 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT

P roduct availability and fast order delivery require unfai- ling organization. In 2016, Rexel launched a major initia- tive to design its new ERP

(Enterprise Resource Planning) tool. Aim- ing to integrate all of the Group s functions, its roll out will be progressive and should start in Europe by the end of 2017. The next generation ERP tool is tied to another major initiative, also launched in 2016: the migration of all of Rexel s IT systems to a cloud structure.

LOGISTICS EXCELLENCE Rexel s logistics chain encompasses supply, stock management and delivery functions. The number of ranges and references in- creases continuously in order to meet in- creasingly specific needs. In 2016, a logis- tics center managed 30% more SKUs on average than three years before. The prod- uct lifecycle is also shortening, with in- creasingly technically advanced products and frequent renewals. Efficient warehouse management tools (WMS, Warehouse Man- agement System) are constantly improved and ensure optimal management of the daily variations in the load, representing 20% to 30% on average. Serving the cus- tomer at the best cost efficiency while en- suring product availability requires an ERP.

Rexel s logistics are evolving toward auto- mated learning systems, with predictive stock and product range management, minimizing the lead times between the launch of a new reference at the manufac- turer and its delivery to a customer. In three years, Rexel has successfully reduced its error rate in order preparation in France from 0.20% to 0.10%. Another initiative run at the global level aims to further reduce the lead times be- tween order placement, preparation and delivery. In France in 2016, the lean ap- proach implemented in the logistics centers enabled the deadline for placing an order for next day delivery to be pushed back from 5 p.m. to 6 p.m.. In 2015, 85% of the orders placed by 6PM were delivered the next day; in 2016, 99.7% of them were. Certain services facilitate customers access to products: the click and collect or drive services, deliveries to large work sites with dedicated teams and vehicles, de- livery commitments on urgent orders, etc.

INNOVATIVE STORAGE A fully automated storage and product selection solution, Autostore illustrates Rexel s innovation potential to improve its service: in an aluminum structure, thou- sands of boxes are stored on high shelves. At the top of the structure, robotized carts retrieve the boxes containing the right product allowing the direct delivery to the operator preparing the order shipment. ElektroMaterial, Rexel s Swiss subsidiary, adopted this solution, which was also rolled out in Sweden. Rexel also offers its customers a tailored supply solution via SmartVan. This offering combines equipment, a long-term rental vehicle, a mobile app and services.