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National Retail Consumer Society Conference 2010 Welcome to Convenience Trevor Ashworth - PowerPoint PPT Presentation

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National Retail Consumer Society Conference 2010 Welcome to Convenience Trevor Ashworth Food Retail Director of Supply Chain & Logistics 27 February 2010. The Co-operative Food Retail. * Includes 1,100 Independent Co-operative Societies’ stores. Logistics Activity.

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National Retail Consumer Society Conference 2010 Welcome to Convenience Trevor Ashworth

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National Retail Consumer Society Conference 2010

Welcome to Convenience

Trevor Ashworth

Food Retail Director of Supply Chain & Logistics

27 February 2010

The Co-operative Food Retail

* Includes 1,100 Independent Co-operative Societies’ stores

Logistics Activity

36,000 deliveries per week throughout the whole of the UK

From The Shetland Isles to the Isle of Wight

From Northern Ireland to Felixstowe

One delivery every 3.6 minutes on average

8,100 employees

Management/clerical 1,500



Shape of The Network - 2003

Too many small DCs, in the wrong places of the wrong design reflecting the historical consolidation within the Co-operative sector

Expensive and complex for Suppliers to service and burdened with overlap and duplication

In reality, three separate networks – Ambient, Chill and Frozen – all acting independently

Expensive to Service by Suppliers

Ambient suppliers delivered to up to 17 depots: 40% of supplier deliveries were for less than 5 pallets, More than 1,000 deliveries per week were for less than one pallet

Overlap and Duplication




Re-engineering The Network - Objectives

  • Upgrade the existing facilities

    • A single, integrated network

    • Composite multi-temperature

  • Improve Supply Chain Performance

    • More efficient for Suppliers to service

    • Optimise stockholding costs and trading terms benefits

  • Create the platform for superior store service

    • Composite deliveries

    • More frequent deliveries

    • Store friendly and efficient for store operations

Re-engineering The Network - Inputs

  • Category Management

  • Total Range

  • Range Mix

  • Range Churn

  • Promotional Policy

  • Suppliers

  • Cost to serve

  • MOQs

  • Trading terms

  • Data exchange

Preferred Network Design

  • Store Operations

  • Frequency of delivery

  • Store operating Costs

  • Store merchandising

  • Store ordering systems

  • Logistics Operations

  • Cost optimisation

  • Stockholding

  • Labour/site availability

  • Environmental impact

Re-engineering The Network

NDC – Slow Moving Ambient

Regional Composite Distribution Centres (Multi-temperature)

Cross-dock Platforms (remote periphery of UK)

6 Composite RDCs

1 Ambient NDC

4 X-dock Platforms

Network Design - Endgame

Network Renewal 2004 - 2009

  • Closed 5 Ambient RDCs

    • Barnsley, Swanley, Cotes Park, Eastleigh, Birtley

  • Closed 2 Chill RDCs

    • Blaydon, Gillingham

  • Opened the new Ambient NDC

    • Coventry

  • Opened 2 new Composite RDCs

    • Thurrock, New Birtley

Impact of Coventry NDC

Kingsland Wines centralised; control and visibility of stocks instated

520 Ambient Suppliers out of 600 now deliver to a single location instead of 18

Reduction of 6,000,000 miles per annum due to use of double-deck trunk vehicles

100,000 orders p.a. eliminated (reduction of 47%)

Full pallet orders moved from 62% to 90%

Imports handled through a single location

Thurrock Regional CDC














West Thurrock

New Birtley








Somerfield/Wincanton Distribution Centres

Acquisition of Somerfield - 2009

Lea Green



Revised Network Endgame 2012

9 regional composite distribution centers (vs 6)

1 national distribution centre – slow moving ambient goods

3 regional x-dock platforms (vs 4)

Scotland CDC

Northeast CDC

Carrickfergus CDC

Northwest CDC

Midlands 2 CDC

Coventry NDC

Midlands 1 CDC

Southwest CDC

Southeast CDC

Southern CDC

Re-engineering The Network - Benefits

  • Upgrade the existing facilities

    • Significant reduction in percentage of distribution costs to sales

  • Improve Supply Chain Performance

    • Reduction in Supplier costs to serve

    • Significant impact on trading terms benefits

    • Significant reduction in stockholding costs

  • Create the platform for superior store service

    • More frequent deliveries + reduced lead times = better on shelf availability = improved sales & customer retention

    • Reduced store operating costs

WMS Background

World Wide Chainstores (ambient)

First implementation 1986

CorDis (chill)

Developed in-house 1994


Merger with United Co-operatives 2007



DCS 2000



Systems Renewal

The Technology

  • Version WMOS 2004R1 SP2

  • Platform AIX 5.3, Oracle 10G, W2K3

  • Symbol RF Scanners

  • Vocollect Vendor: Zetes

8 sites currently operating Manhattan/Vocollect

Achieved self-sufficiency of implementation after the second deployment

Rate of implementation is determined by the logistics network development programme

Some implementation into “legacy” sites due to quick payback

12 further implementations between now and 2012

Simultaneous roll-out of MicroliseTransport Execution System


The real benefit to a Retailer is the level of accuracy that the Manhattan /Vocollect combination, coupled with Microlise TES, delivers

Impact on Store Staff

Impact on in-store SBO system

Impact on on-shelf availability

Retail Benefits

Support for Corporate Re-branding

700 Co-operative Store refits completed in 2008

Previous UK record was 250 stores in one year (held by the Co-operative)

Support for Corporate Re-branding

586 Co-operative Store refits/re-brands (former United Co-operative stores) completed in 2009

185 Somerfield store conversions completed between October – December 2009, all remaining Somerfield stores converted in 2010

Support for Corporate Re-branding

All refits/conversions supported by Supply Chain help-desk throughout the process with enhanced service

Average of 2 store launches per day

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