Sainsbury's is a major UK supermarket chain that was founded in 1869. It uses third-party logistics (3PL) providers to manage parts of its supply chain and logistics operations. Some key points: - Sainsbury's outsources the operation of 6 of its 20 distribution centers to 3PL providers like Unipart and Allport. - 3PL providers help with transportation services, order processing and fulfillment, and packaging. For example, CEVA Logistics provides home delivery services. - Using 3PL providers allows Sainsbury's to benefit from logistics expertise, focus on its core retail operations, and reduce the number of assets it needs to own.

1. Sainsbury’s
Identify a
Wholesale or
Retail
organisation to
study that uses
3PL contract
Amanda Bremner logistics.
Amélie Chazal

2. 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

4. 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 footprint
Aim :
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

5. 3PL Contract Logistics
 Sainsbury’s is a great customer for 3PL providers :
Of Sainsbury's network of 20 distribution centres :
 6 are operated in-house
 The remaining are outsourced to a range of logistics service providers.
Sainsbury's is outsourcing more of its network to third party logistics
providers than Asda and Tesco.
 Various providers including Unipart and Allport
Example of Unipart :
 Chosen in 2009 by Sainsbury's 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 companies
Example 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.

6. Rationale for the Approach
 Providers can :
 offer something different and focus on continuous improvement
 bring commercial advantage to the Sainsbury's 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

7. 3 examples of the use of Third Party
Logistics Providers by Sainsbury’s :
Transportation
Order Entry, processing &
fulfilment
Packaging

8. 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)

9. Order Entry, processing & fulfilment
through video conferencing
Sainsbury’s Logistics selected AVM and BCS Global to expand their
video infrastructure : tool = Virtual Presence video conferencing
Use of video conferencing to improve productivity of employees in
logistics
 Video conferencing → an on-demand service
It 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.

10. 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

11. ANY
QUESTIONS ?
Thanks for your attention…