Sainsbury’s is reorganising its depot network so that the number of miles per case being travelled is reduced and the network’s ability to respond to demand is increased. Consultation is currently taking place at Rotherham as the depot is no longer required. As a result of increased sales volumes Buntingford re-opened again in October to provide additional capacity for Christmas.
Sainsbury’s says it has reduced stock-outs by 75 per cent over the past year and availability is now at industry-matching levels. Announcing its half year results, the retailer said new ways of working had been introduced in the supply chain to speed up turnaround of store orders and manual interventions had improved the performance of the automated depots.
“These are processing around two million cases per week, roughly double the amount achieved the previous year. This is a significant improvement but the investment in additional labour in both stores and depots continues to incur higher costs than those originally anticipated.”
Roger Burnley joins Sainsbury’s operating board from Matalan in January to work alongside Lawrence Christensen and he will assume full accountability for the supply chain at the end of March 2006.
Sainsbury’s cuts case-miles
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