c orisofferasservicethatticksalltheboxeswhstilldrivingdownthecosts

, saysNickHu

Y

Y

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linWithinflationrunning at

over5%% , unemploymentat a 17-yearhighandconsumerconfidencenearingrockbottom

,

thecurrenttradingenvironmentcouldbarelybelessfavourable to retailers.

Now,

moresothanever,

thegrocerysupplychainhas to berobust

,

efficientandresponsive to thedemands of

customers . Ensuringgoodon-shelfavailabilityremains of paramountimportance - afterall if productsaren' t ontheshelf

, peoplecan' t buythem - but,

at thesametime

, holdinghugeamounts of

inventory is neitherproductivenorprofitableandassuchretailersareincreasinglyseeking to have a continuousflow

of productsgoing in andout of storethusenablingthem to holdlittle or nostock.

"

Logistics is nowconforming tothe

24 /

7 lifestylethatconsumersultimatelydemandand it hasmanifested itself in

thedemandsplacedbycustomers forshorter leadtimesresulting in a sevendayorder - sevendaydelivery311113

CONTENTS

@logistics : offers ' payasyougrow'fortheultimate in flexibility 8

Aisle-Master : hasthesolution to

increasecapacityandcutcosts 9

CulinaLogistics : continues to addvalueto grocerylogistics10CEVALogistics : offerspredictablelogistics in

anunpredictable world .13

CulinaFresh : offersexpertise in thetransportation of perishables14DSSmithPackaging : packedwithideas

to furtherstreamlineshelf-ready16FowlerWelch : thechilledandambientexperts18Thissupplement to TheGrocer waspublished by : William Reed Business

Media lid,

Broadfield Park, Crawley ,

West SussexRHTI 9RT.T : 01293613400.

Editor : JohannaThomson . Designer : AmberStoddortPrinters :

St Ives . WilliamReedBusinessMediaLtd.

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BIMschedule,

"

explainsPeterButler

, managingdirector,

SHSSalesandMarketing .

"

Weseethistrend to shortenthelifecycle of

theorderanddeliveryprocessonlyacceleratingoverthenexttwo to threeyears.

"

Findingtherightbalancebetweenstrongon-shelfavailabilityandminimalstockholding is

a challengeand it' s

a challengethatretailerscanoftenbestmeet in partnershipwiththirdpartylogisticsprofessionals.

DRIVINGDOWNCOSTS

Despitetherapidpace of changethatcharacterises themoderngroceryindustry ,

thetemplatefor a successful logisticssolutionremainsbroadlythesame .

" The

rightlogisticssolution is scalableandflexibleenough to respondquickly to

changes in demand,

drivenby a varietyof factorssuchastheweather

, publicandseasonalholidays or limiteddisposableincome

,

"

saysMatthewCarroll, regional

director,

consumer,

retailandmedia at

CEVALogistics.Whattherecessionhasdone

,

however,

is promulgatedaninterestingdivide in

theapproachtakenbycompanies towardsthemanagement of theirsupplychains

,

according to NickHay , managingdirectorof FowlerWelchsays :

" Whilepart of theconsumerbaseremainspurely focusedonprice ,

there is a growingnumberwhoseecollaborationasthewayforward.MorecustomersarenowworkingwithFowlerWelch to savecostsandimproveservicethroughconsideringdifferentroutes to

market. "

One of theways in whichcollaboration is helping to drivedowncostsandimproveservice is throughsharedusertransportingandwarehousing .SaysCEVALogistics'Carroll :

" Scalableshareddeliveries lowercarbonemissionsandreducecongestionandsharedwarehousingreducescostthroughtheuse

of sharedassets,

sitemanagementandaccess to a flexiblelabourpool.

"

Theshareduserapproachmeansthatvehiclescarryproductsformultiplecustomers . Individualpalletsmightalsocontainproductsfromdifferentsuppliersbutwith a common

,

shareddestination,

explainsPaulSteele, operationsdirector

of CulinaLogistics .

" ThismeansCulinaLogisticscanoptimisetheresourcesutilised in eachdepotandthroughoutthenetworkbutensureeveryvehicle is

filledasfullyaspossible foreffectiveandeconomicaltransportation . Theimpactonthefoodmilesandcostsassociatedwithanindividualproducer ,

brandproduct or customercanbesignificant ,

"

saysSteele.

INNOVATION IS KEYOfcourse

, drivingcostout of thesupplychainisn' t theonlystrategic imperativeforbusinesses . Innovation remainsasimportantasever .

" Costreduction is

clear,

butincreasinglycreating or

unlockingvalueanddrivinginnovationare at

theforefront of supplychainprofession

ammiesommiummormiN There is

a

growingnumber of

customerswhosee

collaborationasthe

wayforward N

als'thoughts ,

"

saysJezTongue , partnerat @logisticsReply.

There is plenty of evidence to suggestthatinnovationhasnotbeenplacedonthebackburnerduringtheeconomicdownturn .

In September ,

CulinaLogisticslaunched a newdoor-to-doorfreightmanagementservicecalledCulinaFresh

,

whichoffershighquality ,

multi-modalsupplychaincapabilityincorporatingroad

,

rail,

seaandairtransportation forfreshproduce ,

horticultureandotherperishablegoods . It hasbeenlaunched to

meetdemandfromproducers , importersandretailersforanintegratedsolution

to managethecompletesupplychainfromsource to

finaldelivery .

"

Producers andimporterstoldustheirexistingsupplychainsweretoodisjointedandinefficient

,

and to dateno-onehasbeenprepared to takeownershipandresponsibility

fordoor-to-door freightmanagement

,

"

saysSteele.

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Anothercompanyaiming to bringgreaterefficiency to thesupplychain is

Aisle-Master,

whoseAisle-Masterrangeof verynarrowarticulatedforkliftsallowsforincreasedstoragecapacityandenablesusers to speedupthehandlingprocess ,

improveproductivityandcutcosts.Aisle-Masterrecently redesignedits

range of

articulated forklifts to

incorporate a host of

newfeaturesfor a

morecomfortableandsaferoperatingenvironmentsuchas a restyledcabandcontrollayout.

Innovations in packagingarealsohelping to achievesignificantimprovements in efficiencyandsustainability.DSSmithPackaging , expertsin

retailreadycorrugatedpackaging , recentlydeveloped a

newtype of flutingcalledR-Flute

,

inwhichtheflutesaresmaller

andclosertogether , optimisingboardstrengthanddeliveringbetterprinting ,

betterappearance ,

machinelineefficiencies anddramaticsavings in logistics ,

whilstcontinuing to offerthenecessaryprotection .

R-Flutehasbeenwellreceived

byleadingfmcgcompaniessuchasKellogg' s

andAccoladeWines,

accordingto TonyFoster

,

sectordirector of DSSmithPackaging .

" Ourinnovationprogrammehasled to a largenumber of

outstandingachievements in reducingcostsandcarbon in

ourcustomers'

supplychains

,

" headds.

ENVIRONMENTALSOLUTIONSWithinthelogisticsarena

, reducingthecarbonfootprintremains a keychallenge to

businesses, saysSHSSalesand

Marketing' sButler . SHS is reducing its

carbonfootprintthrough anumber of

routesincludingtheintroduction of

multimodal-railservicesacrossEuropeto decreasethenumber of vehiclesthatdeliveronitsbehalfandbackhaulingand

consolidatingdeliveries,

whichmeansSHShas " madeeverymilecountbymaximisingtheloadswhileminimisingtheroadtime "

, according to Butler.Ofcourse

,

financialandenvironmental costsareinextricablylinked in

thesupplychain . Reducingyourcarbon

footprintinvariablybringswith it theaddedbonus of costreduction.

HowardTenens isonecompanyfor

whichthetwogohand-in-hand .

OM

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MEDualfuel( gasanddisesel

)

hasrecentlybeenrolledoutacrosstheHGVfleetandtrialsareunderwayforstagetworeplacingcompressednaturalgaswithbiomethane

,

themostsustainable roadtransportfuelforthehaulageindustry . Thedutydifferentialbetweengasanddieselmakesthiscommerciallyviableandmany of thesupermarketsandothercustomersarefollowingHowardTenens'lead.

Othereco-friendlyinitiatives includeenvironmentally-friendly lightingacrossHowardTenens'freeholdwarehousingportfolio , groundsourceheatpumpsandwindandsolarpowerallaimed at

reducingtherunningcosts of itswarehouses.

TECHNOLOGICALADVANCES

Goingforward, technologywillplayan

increasinglyimportantrole in thesupply

chains ofthefutureaslogistics

businesses seek to becomemoreefficientandbetterable to respond to shorter leadtimes . HowardTenenshasdevelopedanin-housebespokewarehousemanagement systemthatoffersmulti-siteandmulti-clientvisibility of stockacrossthegroupwhichalsointerfaceswiththetransportmanagementsystem.

FowlerWelch's operations integrate

withcustomersystems to transferorderandstockinformationon a realtimebasis .Thekeyrole of technology in thesectorhas to be to speeduptheanalysisandtransparency of data

,

bothinternallyandwithcustomers

, saysHay .

"

Technologycannotreplacethevalue of skilled

operators ;

however it cancertainlyenhancetheflowandaccuracy of

availableinformation,

" hesays.Keyfeaturesthatmakeideal

warehousinganddistributioncentres in today' s

businessenvironment, according to

@logisticsReply' s Tongue ,

arejudicioususe of automation

; employeecontractswhichallowflexing of workforceacrossshiftpatternsanddays ;

radiofrequencyandvoicesupportforprocesses ,

especiallypicking ;

flexiblesoftwaresolutions

,

whichallowforrapidsupport of

processchanges ,

forexamplefromstaticto dynamiclocationmanagement ,

andcaneasilyaccommodatenewcustomerrequirements ;

andcollaborative integra

tion of informationsystems.Today' s warehousinganddistribution

centresalsohaveto beable

to offerconsolidation

, pick-to-ordersolutions,

servicessuchasinboundtransport , storage ,

reworking ,

orderandstockmanagementandbespokemanagement information

,

according to FowlerWelch.Methods of distribution in thegrocery

spacehavereached a prettysophisticatedlevel of development ,

believesTongue.Butthere is stillmorethatcanbedone

to improvetheprocessesthattogether

wiamiamidwimmisomium

N Distributionmethodshavereached

prettysophisticatedlevelsbutthere

is stillmore

to bedoneN

allowthegroceryretailsupplychain to

functioneffectively . Tongueoffersasexamples :

"

usingrealtimewarehouseexecutiondata to driveproductiondepartments to producewhat is requiredbythecustomerratherthanwhat is ontheplan - therebyeliminatingscrappageandcostlyspecialtransportations ;

creatingpalletloads in linewiththeretailer' s

booking in processes ,

sogroupingalllikeitemstogetherratherthanspreadacrossseveralpallets , eliminatingshortagereportingandclaims

;

andusingcrushabilityfactors to avoiddamagesandhold-ups in unloading.

"

Each of theseexamplesoffersaninsightintohowlogisticsprofessionalsarecontinuouslysearching forthoseimprovements in processthatwillgivethem a competitiveadvantage in themarketplace . Indeed

,

at a timewhengrowth in theUKeconomyhasgroundto

a virtualhalt, companies involved in

logistics , warehousingandtransportation realisethat

,

moresothanever,

nowis notthetime to bestandingstill .

-

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