grocery - food - Grandflame Ltd

Page 18 August 2010
Email: grocery@flame1.com WAREHOUSE AND LOGISTICS
Tel: 01923 272960
STRONG SALES JUSTIFY SUPPLY CHAIN INVESTMENT
THE COMMENT FROM THE GROCERY TRADER
elcome to The Grocery Trader’s quarterly supermarkets’ commitment to continued investment in warehouse and logistics space, than elsewhere in the grocery
scenario. As Alex Laffey, Network Development Briggs UK will look after Yale’s new
Northern Ireland. Under the agreement
Warehouse & Logistics feature. The CBI’s their warehousing and logistics infrastructures.
Wlatest survey shows retail sales growing As reported on last month’s front page, Tesco has director for Tesco, explained, “Our supply chain is a critical
and used truck sales, plus rental, contract
at their fastest since April 2007, with the World Cup and
the seasonal warm weather contributing to increased
consumer spending.
The retail sectors showing the strongest growth were
grocers, clothing, and footwear and leather. Better still,
the CBI survey shows sales growth expected to go on in
August.
Other sectors have been hit hard by the credit crunch
and ensuing recession, but retail has been turning in a
consistently strong performance in the tough economic
climate. These latest figures definitely justify the major
selected Toyota Material Handling to supply the material
handling fleet for their new Avonmouth depot.
Toyota will support the operation with the supply and
service of a fleet of over 130 units including low-level
order pickers and powered pallet trucks, helping operators
to pick productively and safely. Enhancing the
retailer’s supply capability in the Southwest, the new
depot will handle over two million cases of fresh and
frozen food each week to fill the shelves of 235 Tesco
stores in the region.
Suppliers and retailers are more equal partners in the
part of our commitment to our customers as it allows
us to provide the value for money, range and convenience
they expect, all in first class condition. This means we
place great importance on the partners we choose as they
must share our commitment to quality, our customers and
to the environment.”
In a second major development, Briggs Equipment UK,
the national independent service provider and materials
handling equipment specialist, is to take over Yale UK’s
assets and become the exclusive distributor of Yale
Materials Handling’s trucks in mainland UK excluding
hire, service and parts.
The deal takes effect from 1 August.
Briggs will continue to look after CAT
trucks in the UK until the end of
September. Briggs Equipment will run its
UK Yale distribution from Briggs’ existing UK base at
Cannock. Briggs does not make any trucks itself and is
totally service-based: it will be interesting to see how the
truck manufacturers and their distributors respond with
competitive service offerings.
The Grocery Trader
TO READ MORE COMMENTS FROM THE GROCERY TRADER GO TO WWW.GROCERYTRADER.CO.UK
CAN SUPPLY CHAIN COLLABORATION IMPROVE ON SHELF AVAILABILITY
SCALA ANNUAL LOGISTICS DEBATE 2010
Some of the leading names in UK
supply chain and logistics gathered
last month at the SCALA Annual
Logistics Debate at Wroxall Abbey,
Warwick to discuss “Can Supply
Chain Collaboration Improve On
Shelf Availability”
The debate, hosted by leading
supply chain consultants SCALA, was
chaired by David Grahamslaw, vice
L-R: John Potter, Senior Partner, SCALA Consulting; Dunc Lowe, Supply Chain Director, Pepsi Co; David
chair for CILT West Midlands, with an
Grahamslaw, Vice Chair, CILT West Midlands; Keith Newton, Customer Logistics Director, Cadbury UK
expert panel comprising: Dunc Lowe,
and Neil Ashworth, Supply Chain Director, Tesco.com.
Supply Chain Director for Pepsi Co;
Keith Newton, Customer Logistics
Director for Cadbury; Neil Ashworth,
Supply Chain Director for Tesco.com
and John Potter, Senior Partner at
SCALA.
Peter Surtees, European Supply
Chain Director for Kimberly Clark had
initiated debate earlier in the day
revealing that on shelf availability plays
a critical role in the organisation as it is
the ultimate KPI used. He indicated that
just 1% improvement in on shelf availability
could be potentially worth up to
£5million, depending on the product
mix. This news follows research conducted
by SCALA last month revealing
that a shocking 15% of leading FMCG
brands do not know their current levels
of on shelf availability achieved.
The research also revealed that in
contrast to Kimberly Clark, a third of
brands did not have on shelf availability
as a key KPI. John Potter remarked on
how levels achieved and degrees of collaboration
across the supply chain had
yet to meet the indicators set out 15
years ago. Over the course of the open
debate discussion was raised on who
was responsible for initiating these partnerships,
what the barriers were to
establishing effective collaboration and
who was to blame for failing to meet on
shelf availability targets.
Keith Newton elaborated on the fundamentals
required for effective
collaboration: “To enable good collaboration,
you need good basics.” Expanding
on this theory, he explained that the
essence of achieving this was to develop
successful relationships and collaboration
internally. Having gone through an
extensive learning period over the past
two years, customer service had become
the number one business objective for
Cadbury, in addition to introducing collaborative
seasonal delivery teams, with
operations and planning already
underway for Easter 2011.
The introduction of these new
internal mechanisms had then provided
the ability to work proactively
with customers and establish joint supplier
plans around new collaborative
frameworks. Keith indicated that, with
some customers, this has improved
their awareness of, and levels of, on
shelf availability. In addition, working
collaboratively with third parties across
Cadbury’s and its customers’ warehouses
and transportation enabled
them to identify new measuring practices.
Where previously they tracked
delivery on time in full, engaging with
third parties had improved these measures
by focusing on post goods issue.
Further to building relationships and
partnerships, Neil Ashworth from
Tesco.com said that without visibility
across their extended supply chain networks,
organisations would be unable to
progress down the collaborative agenda,
heightened by a lack of specificity
regarding the definition of ‘shelf-edge’.
With increased internationalisation,
technological advancements and multichannel
offerings, he said supply chain
teams must be aware that the “shelf
edge is everywhere, in store, on the web,
on the phone, even at the water cooler.
Key to this development is customer
research; today’s customer is predicated
on deselection online, unlike traditional
selection in store. This deselection
process involves editing out on price,
unavailability, returns policy and
increasingly the ethical and moral credentials
of those in the supply chain. As
a result, the retailer has many challenges
from these emerging market dynamics.”
Neil continued: “The challenges are
greater than ever in this new virtual
world, and we have to embrace these
new relationships. We see collaboration
as an overwhelming priority and
we must all be ready for the crosschannel
consumer and prepared to
collaborate to win their business.”
PepsiCo has simplified its strategy for
achieving successful customer collaboration.
Dunc Lowe emphasised that despite
technological advances, the value of
human interaction cannot be understated
in building sustainable long term relationships
with customers: “We do some
of our best collaborative work by simply
going and talking to people.” He went on
to emphasise that supply chain collaboration
should not be exclusively focused on
availability: “It is about creating the right
agenda in which you can participate.” He
added that manufacturers must accept
that the retailer will invariably hold the
balance of power.
When the debate was thrown open,
some lively exchanges ensued, with
the issue of trust between retailer and
manufacturer being raised repeatedly.
Duncan continued: “Trust is implicit
in our relationship with retailers.” The
Cooperative food group admitted that
60-70 per cent of shelf gaps can be
attributed to issues at retail stores,
which still left 30-40 per cent to tackle.
The question of implants at retail
sites was also raised again and again,
with many participants convinced
they were the most effective method
of improving relationships and developing
greater understanding of
customer operations and strategy.
“Implants are invaluable, but not critical,”
Duncan added. In addition the
need for incentivised relationships
with 3PLs was another area lacking in
the supply chain industry, with
greater opportunities to seek mutual
benefits yet to be embraced by many.
The SCALA Annual Logistics
Debate, attended by over 150 delegates,
was supported by the CILT UK,
AEB Advanced Global Trade Solutions,
Slimstock and BiS Henderson and
CDC Software Solutions.
For more information please
visit www.scalagroup.co.uk
AEB (INTERNATIONAL) LTD TO SHOWCASE SUPPLY CHAIN SOLUTIONS AT IMHX 2010
AEB (International) Ltd has
announced that it will exhibit at the
IMHX at NEC Birmingham in
November. The company, a leading
software provider in the fields of
logistics and global trade, will focus
its attention at the show on two key
modules - transport and warehouse
management - of the supply chain
management solutions suite ASSIST4.
ASSIST4 is a comprehensive solution
for all logistical processes in
global trade. It can manage the entire
warehouse process, from goods
receipt to stock putaway, from
picking and stock removal to packing,
from complete freight document
preparation to loading. By standardising
and automating business
processes in supply chain execution,
logistical processes become more reliable
and efficient. This in return helps
companies to cut costs and remain
competitive.
LADDERLOGS
ARE ATTACHED AS REPUBLIC TAKES STEPS
IMHX 2010 HAS THE ANSWERS…
Ladderstore is providing Republic
(Retail) Ltd, a leading multi-branded
fashion retailer, with platform step
ladders and mobile safety steps
fitted at point of purchase with its
ladder tagging system, Ladderlog.
The Blue Seal steps recommended
to Republic by Ladderstore, were considered
particularly suitable for retail
stores given their deep treads and
double hand-rails. The decision to
pre-attach a Ladderlog gave
Republic’s Head Office the reassurance
it needed that the steps being
delivered complied with the Working
at Height Regulations and were ready
for immediate use.
Sara Winterburn, Facilities Manager
at Republic said, “I selected the
Ladderlog system because it is easy to
use, is clearly visible and seems the
most appropriate asset management
system for the retail environment. It is
also extremely helpful that Ladderstore
fits them to the steps prior to store
delivery. Not only does this mean we
know they are ready to use on receipt,
but it is also more cost efficient.”
The move to use the Ladderlog tagging
system was part of a wider
training review for store staff. It now
forms part of a quarterly health and
safety audit in the store with staff
trained to inspect ladders and report
defects. In the view of Gail Hounslea,
Managing Director of
Ladderstore.com, “Republic is demonstrating
a proactive approach to its
health and safety responsibilities. Pretagging
Ladderlog is an excellent
example of a company minimising
any risk to the safety of its staff.”
Commenting on the order process,
Sara says, “We now order all our
ladder equipment from Ladderstore,
and it could not be easier. Our dedicated
Account Manager sends us an
acknowledgement same day on
receipt of our order and the store usually
receives the goods within 2 days -
the process couldn’t be more convenient.
Ladderstore will even deliver to a
specific date for a new store opening.”
Visit www.ladderstore.com for
information and advice or call
01204 590232.
The UK logistics industry is estimated
to be worth more than £74bn
per annum, and employs a staggering
one in twelve UK workers. The supply
chain links manufacturers, distributors
and retailers with their markets.
Distribution is therefore at the forefront
of our economic recovery. Many
of the products and services displayed
by the 300+ exhibitors at IMHX 2010 at
the NEC from 16-19 November will be
aimed at the distribution industry.
Reasons to pre-register
IMHX 2010 is the number one place
to meet suppliers and network with
new contacts. With over 300 exhibitors
displaying their products and services
and showcasing the latest technology,
visitors to IMHX will learn what’s hot
in the handling industry and what
future trends are likely to be. With
hundreds of products on show and
many featured in live demonstrations,
visitors will gain hands-on experience
and valuable insights. IMHX 2010 is
the leading show for all your logistics,
distribution and warehousing solutions.
And, it only happens once every
three years - so don’t miss out!
Visitors who pre-register for IMHX
2010 will receive a special Priority
Pass pack by post before the event.
This passport-style wallet contains
everything you need to maximise the
benefits of a visit to the show - a delegate
name badge, the ‘Little Black
Book’ of handling industry contacts, a
fold-out exhibition floor plan and key
details of the show’s environmental
zone.
Visitors wanting to pre-register for
free tickets to attend IMHX 2010 can
do so on-line by visiting
www.imhx.biz.
VIP parking returns to IMHX
The exclusive VIP valet parking
service returns to IMHX in 2010, sponsored
by Toyota Material Handling
UK. VIPs will be able to drive directly
to the door of hall 18 at the NEC, from
where their vehicle will be parked for
them and returned to the door on
leaving the exhibition, ensuring a
totally hassle-free visitor experience.
WWW.GROCERYTRADER.CO.UK/WAREHOUSE