We also reduced internal inventory another 2% and now have very lean channel and internal inventories at levels not seen since we emerged from the recession.
The system has already been used on the Eurostar and Eurotunnel cross-channel services, and is claimed to have greatly reduced the number of people arriving without proper passports or visas.
Since 2006, HD increased its operating margin through efforts such as developing its supply chain management, which reduced cost of transportation and inventory, and developing a formal distribution channel which increased bargaining power over suppliers.