Sainsbury’s Identify a Wholesale or Retail organisation to study that uses 3PL contractAmanda Bremner logistics.Amélie Chazal
About Sainsbury’s Founded in 1869, Sainsbury’s is one of the most recognised brands in the country Number of employees : over 150,000 staff across the UK Number of retail stores and supermarkets : More than 900 Number of customers per week : 16 million This company consists of Sainsbury’s Supermarkets, Sainsbury’s Local, Bells Stores, Jacksons Stores and JB Beaumont, Sainsbury’s Online and Sainsbury’s Bank.So : in addition to its retail stores, Sainsbury’s has numerous corporate offices across the UK to manage its operations, logistics and merchandise supply chain Sainsbury’s prides itself on providing excellent customer service and quality shopping experience, with products at fair prices
Logistics Approach To move goods from suppliers to depots, and then to stores, there is a need to transport by sea, air, rail and road – this contributes to the company’s carbon footprintAim :Link the right stores geographically to the right depots to reduce transport miles Some delivery options :Example for non food goods : Standard Delivery Next Day Delivery Named Day Delivery Saturday Delivery Click and Collect http://www.sainsburys.co.uk/sol/iw_container_page.jsp?pageRef=sites/www/site_fur
3PL Contract Logistics Sainsbury’s is a great customer for 3PL providers :Of Sainsburys network of 20 distribution centres : 6 are operated in-house The remaining are outsourced to a range of logistics service providers.Sainsburys is outsourcing more of its network to third party logistics providers than Asda and Tesco. Various providers including Unipart and AllportExample of Unipart : Chosen in 2009 by Sainsburys to be its non-food fulfilment provider Unipart employs over 8,000 people worldwide, Turnover of over £1billion and is one of Europe’s leading logistics companiesExample of Allport In 2011, Sainsbury’s signed up international logistic s & supply chain firm Allport to also run its freight management service One of the biggest provider for UK retail.
Rationale for the Approach Providers can : offer something different and focus on continuous improvement bring commercial advantage to the Sainsburys Logistics division support Sainsbury’s long term strategy for growth of non-food ranges and provide a broader shopping experience In general, Providers : are experts in area and are therefore more efficient reduced number of Sainsbury-owned depreciating assets
3 examples of the use of Third Party Logistics Providers by Sainsbury’s : Transportation Order Entry, processing & fulfilment Packaging
Transportation Selection of providers like : CEVA Logistics for home delivery Allport for non-food goods … What was done by providers ? Train drivers to drive efficiently, and introduced double-decker lorries, which transport more goods in a single journey Through primary transport operations (supplier to depot) and secondary transport operations (depot to store) Sainsbury’s are cutting CO2 emissions In primary operations, Sainsbury’s use empty trucks to collect goods from suppliers on their way back from store deliveries - the number of collections has now reached over 140,000 per year In secondary operations, a focused project on vehicle fill has led to improvements of more than 1.5 per cent across entire store delivery flee Achieved a reduction of over 1,800,000 vehicle kilometers this year, by using fleets more efficiently An help to meet the green challenge (by using all types of transportation : air, water, rail, road)
Order Entry, processing & fulfilment through video conferencingSainsbury’s Logistics selected AVM and BCS Global to expand their video infrastructure : tool = Virtual Presence video conferencingUse of video conferencing to improve productivity of employees in logistics Video conferencing → an on-demand serviceIt could be used : any time for multipoint and point-to-point meetings with continuous presence and 24 hour customer support. Prior to the implementation of Virtual Presence : Lot of working travels across the UK to attend meetings (costs time and money)Now by using Virtual Presence video conferencing : Employees can hold meetings instantaneously, When they finish the call, simply get on with their work.
Packaging after sale• An example of the Jutexpo Ltd company which provides green bags for almost all the major retailers in the UK ( Sainsbury’s, TESCO, ASDA…) http://www.youtube.com/watch?v=x6UOWlmdqhI