EFFICIENT UNIT LOADS - ECR Community

Figure 14: Typical total supply chain
Source: A.T. Kearney
EUL should optimise available spaces
Grouping on every level – secondary and tertiary –
involves filling space efficiently. This also applies to
filling racks and trucks. Transport is a key cost,
particularly for manufacturers. The increasing cost of
road transport and the resulting environmental
damage make it critical to achieve the best possible fill
of the transport cube or space. Storage costs, although
important, are typically less than transport costs, and
therefore, the impact of poorly utilised storage space is
less critical.
The ultimate objective in developing Efficient Unit Load
supply chains is therefore to minimise handling and
26
Plant
MDC
Figure 15: Grouping of yoghurts on secondary and tertiary levels (example)
Packaging level Number of items
Tertiary
Source: A.T. Kearney, Efficient Unit Loads project
Primary
Secondary
1,280
128
1
RDC
10 handling steps
’just for distance’
maximise transport space utilisation. However, these
two goals can conflict. A key concern of manufacturers
is to avoid moving empty spaces in their productdedicated
distribution networks, whereas a key
concern of retailers is to obtain the lowest cost
handling of their assortments through to shop shelves.
Applying ER principles and techniques – with less
stocks, smaller and more frequent flows, crossdocking,
and roll cage sequencing – will worsen this
conflict.
EUL make optimal use of spaces available in the
supply chain and minimise handling.
One time handling
cost per item
0.03 ECU
0.05 ECU
1.00 ECU
Store
Total handling cost
38.4 ECU
6.40 ECU
1.00 ECU
The Efficient Unit Loads Report