Long Term Priority, with Lagardère Travel Retail
Denis Fournier, you are CIO of Lagardère Travel Retail France. Everyone knows the Relay stores, but could you tell us more about LTRF?
Denis Fournier : Lagardère Travel Retail is one of the two divisions of the Lagardère Group. Today, it is a global leader in the sector. We operate 4,800 stores worldwide. Present in 39 countries, the group employs 25,000 people and generates €5.5 billion in revenue overall. In France, we operate 900 stores, excluding duty free, located in railway stations, ports, hospitals, and the metro under the Relay brand.
Without going into too much detail about the information system, what are some key highlights?
DF : We must closely monitor the activity of our retail outlets, all of which operate under concession agreements. These contracts evolve over time, and we remunerate concession holders using complex rules such as thresholds and guaranteed minimums. We also manage the compensation of store managers, who are our employees, based on a fixed salary combined with incentives linked to revenue and shrinkage. In addition, we handle inventory management and supply. Our stores offer a very wide range of products across six categories: press, books, tobacco and related products, gifts and souvenirs, packaged food, and food service. This also means managing agreements with 5,000 suppliers, including various rebate clauses typical of large scale retail contracts.
What needs led you to work with FiveForty?
DF : We needed support in making the right strategic development choices while ensuring optimal use of our information system.
What were your expectations before starting this collaboration?
DF : We needed partners capable of providing high level technology watch on our behalf. We neither had the internal resources nor the desire to recruit them. In short, we were looking for cutting edge consultants able to contribute to design, build, and develop the most relevant solutions.
How did Lagardère Travel Retail come to work with FiveForty?
DF : This Microsoft consulting firm was founded by people who were already well known and respected. We had previously worked with a young consultant a few years earlier and appreciated his contributions to our ERP. When he later became a partner at FiveForty, it was an obvious choice to continue working with him and his teams.
Ultimately, what motivated your decision ?
DF : You know, “one shot” and “offshore” approaches are not part of Lagardère’s culture. Even if it is not easy to find, we prefer partners who can deliver skills and value over the long term. This long standing relationship, combined with the technical expertise of the consultants proposed by FiveForty, confirmed our choice. Their size also ensured stability among the consultants involved.
“Neither one shot nor offshore”
DF : Yes, because the way FiveForty operates is fully aligned with what we are looking for: a human sized organization with very open and easy communication.
What assessment do you make of this first collaboration?
DF : On the AX side, the assessment is positive. We were able to evolve the legacy system in line with business needs at a very reasonable cost. That said, we will need to scale up on the technology watch aspect and clearly define together how we prepare for the future.
What do you appreciate most about FiveForty?
DF : The quality of human relationships, their size, and their ability to carry out a very fine grained analysis of upcoming IT trends.
In your view, what areas for improvement could be considered ?
DF : If growth continues at this pace, it may be worth strengthening client side governance. And perhaps adding one or two additional capabilities to FiveForty’s offering. Everything can be considered.
If you were to recommend FiveForty to a fellow CIO, what would you say?
DF : Their number one strength is undoubtedly their agility, driven by the profiles and personalities within FiveForty. They also have very senior consultants capable of delivering value over the long term.
What would you advise FiveForty to be particularly mindful of?
DF : Their strength lies in their team. As they grow, they must be careful in recruitment not to introduce a “Trojan horse” into the organization. People can sell themselves well in interviews, but it is not always easy to identify those who will truly match the company’s spirit over time.
“A different company culture“
In your opinion, what sets them apart from others ?
DF : Once again, it is the people who make the difference. FiveForty’s culture reflects that of its founders. They must preserve this originality compared to more purely business driven firms that, in the long run, do not necessarily guarantee stability.
Three words to describe FiveForty?
DF : Company culture, human relationships, operational agility.
DF : Four, to keep improvement goals alive. One of FiveForty’s promises.
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Babilou, créé en 2003, leader des crèches d’entreprises, a choisi FiveForty pour son expertise Dynamics 365 Finance and Operations, sa disponibilité et son approche humaine. Collaboration jugée très satisfaisante, efficace et fondée sur la confiance, l’expertise métier et la qualité relationnelle.