Digital Transformation in the PLM domain - distrib.pdf
Presentation sainsbury's
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
3.
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