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Wolseley plc

Annual Report and Accounts 2007


Growth Turn Page Performance Review

Group Chief Executive's review

Growth Sourcing Supply Chain People Development Five Key Focus Areas

82
locations implemented common warehouse management system

12,000
employees served by common HR systems to date

Business Improvement

From top class to world class

Business improvementIn our industry, Wolseley is already a top class company, a leader in our field, in terms of size, scale, financial results and efficiency. However, we have the opportunity to be even better, to become truly world class.

The Group has continued to invest in key business improvement initiatives to support its long-term growth objectives, whilst creating a more effective and streamlined organisation.

As well as the investments we are making to leverage our size and scale in supply chain and sourcing, we are also embarking on a global business change programme to drive best practice, establish more efficient processes, reduce costs and benefit from synergies across the Group.

In particular, we have defined a target operating model that captures Wolseley's future vision and we are implementing a common set of processes across the Group supported by a world class, Company-wide, common IT platform. The systems being developed will enable the Group to operate more effectively and will lead to continued market outperformance over the long term.

Wolseley is beginning to reap the rewards as several early programmes are being rolled out, such as the human resource management system and a common IT platform across the Austrian operations. In addition, we are assessing, updating and improving our supply chain and branch operations. Wolseley's business change initiatives aim to deliver real advantages and enhanced benefits to support the organisation's growth ambitions.

By creating a culture of continuous improvement, we are raising the bar - each year having higher expectations than the last.