LOGISTIC THINKING

Have you ever considered adopting a new approach to your supply chain, focused on your needs as well as that of your customer? There is a distribution system that could improve the availability of products in your outlets, minimise stockholding, enhance supplier performance and, more importantly, save you money into the bargain.

Companies operating in the convenience and forecourt retailing market have already found out what Hays Food Logistics can offer in the way of new standards in supply chain service.

Hays Food Logistics is a specialist division of Hays Logistics UK, whose logistics services cross a wide range of business sectors and product groups.The company employs 24,000 people at 700 locations worldwide

Its consumer sector holds contracts with Shell and BP, delivering to their forecourt shops throughout the UK. Major clients include B&Q, Waitrose and Tesco, and Scottish Courage, KFC and Yates Wine Lodges. Its retail support services provide specialist warehousing, refurbishment, installation and distribution of non-saleable items.

Christopher Faulkner, general manager business development says: "Customers want to feel and loved and cared about and our all inclusive service provides this reassurance."

Hays Food Logistics has a strong customer focused management team whose role is to constantly question and review, explore ways to innovate and add value and share best practice.

Christopher reckons there are a lot of parallels to be drawn between the catering and retail markets. With the demand for a wider range of goods from forecourts and convenience stores increasing - a trend mrrored in the catering and hospitality sector - managers are under continual pressure to have a full stock of goods seven days a week, 24 hours a day.

Therefore, an efficient and reliable, but also cost-efficient supply chain is required.

Hays manages to cut costs at all levels of the supply chain in several ways. It brings together small groups of non-competing customers with similar supply chain profiles who then benefit from shared operations.

At the centre of the supply-chain is a multi-temperature distribution centre acting as conduit for a large range of stock. This is supported by a network of regional distribution centres, offering cross-docking, and radial distribution.

Hays's fleet of trucks have ambient, chilled and frozen compartments, and will deliver stocked goods through daily timed deliveries, seven days a week.

Costs are cut at administration level. Hand held terminals are used for picking goods at stock level and for delivery. Invoicing is done electronically, making less paper work for the admin team and also bringing the benefit of immediate service reporting.

Using an on-line information system provides real-time access to sales data and stock levels. Therefore, there is complete visibility of management information for everyone involved; outlets, head office and suppliers.

No one is kept in the dark, and central management can also look at the buying trends at local establishments and match stock to suit their needs. This too will help to cut wastage.

Another benefit of making sales data available from the outlet to the manager also means that production can be planned to match demand, especially for forthcoming promotions. Hays' flexible approach will also cut transport costs by combining product deliveries with promotional items, display equipment, and will even deliver head office correspondence to outlet managers.

Hays will deliver once a day at an arranged time. This delivery will contain all the items required by the outlet, regardless of temperature. Many establishments tend to have a combination of wholesaler agreements, with deliveries often arriving at various times throughout the day. With one delivery a day, from one supplier, the store manager's day is made a lot easier. The difficulties of stock management and re-ordering procedures are also lessened with just the one supplier.

With all these systems in place, the result of improved management control should mean that there will be lower stock levels as managers will be aware of what demand there is for certain products and match their stock accordingly. This will also eliminate wastage, and save money, as they will not have to reduce the price of goods with a short sell-by-date.

Planning in advance for promotions will also mean that managers can order more of the products on offer, so there won't be a shortage.

Hays Food Logisitcs