Annual Report and
Accounts 2006

heading: Looking ahead, simplicity
> Less hassle and cost
We constantly search for innovative ways, such as our "branch within a branch" concept, to take more products to more customers.
Simplicity | Wasco branch, Diest, Belgium Wasco branch, Diest, Belgium

Our DCs have helped to transform the Ferguson business in the US. DCs don't only save costs – they also have impact on customer satisfaction. Fill rates out of the US DC facilities regularly exceed 94% and are amongst the highest in our industry.

Now we're rolling out the DC model across Europe. The new National Distribution Centre opened in the UK in August 2006 and the Italian DC will follow towards the end of the year. Plans are already advanced to open similar facilities in other countries.

Through the "branch within a branch" initiative, we establish a counter from one brand in the premises of another, thereby increasing the branch's total product offering without increasing the size of the branch itself.

At the Wasco branch in Diest, Belgium, we have gone one step further - implanting not one but two new product areas within the branch. So in addition to their regular plumbing and heating supplies, Wasco customers can now access spare parts from a Parts Center area and specialist fixings from a Unifix area, all under a single roof. These additional product areas are also introducing a new customer base to the Wasco brand.