Global packaged media manufacturer and distributor Cinram has been appointed by Wm Morrisons Supermarkets as sole provider of storage and distribution services for the music, video and games categories in the UK. It takes over from wholesaler MBL Group when the latter failed in its bid to continue a 14-year relationship with the supermarket chain. The loss of this bid is reported to have put MBL up for sale.

The agreement, which starts in September, will require Cinram to make products retail-ready, including stickering and security tagging of products, “utilising best-in-class systems and processes for efficient and effective supply chain operations.” In addition, Cinram will implement a retail services solution, its Vision software, to help Morrisons manage and control its inventory and balance supply with demand.

Cinram’s business intelligence tool, Vision, is a category management solution software captures information on buying patterns, analyses the data and enables demand planning and forecasting for each point within the supply chain. Re-ordering is automated and also includes Vendor Managed Inventory services.

Cinram claims its Vision tool has produced a significant uplift in results for its clients, delivering a 19% increase in sales to one customer, a 25% reduction in retail inventory to another and a 40% decrease in returns over similar stores and periods to a third.

Morrison is the fourth largest grocery retailer in the UK, charting a 7% growth in sales over the last year. 2011 is expected to show further growth as the company has already announced significant plans for expansion across floor space, food production and internet retailing by 2014.

Story filed 17.03.11