Top Editors ... Warehousing & Distribution

Title: Warehousing & Distribution
Date: 29/10/2007
Autor: Claire Rowan

Operating the supply chain efficiently can make the difference between success and failure for food and drink products, and fulfilling on the ‘just in time’ needs of the retailer is increasing the pressure on manufacturers to perform

Ensuring the supply of top quality, safe product to retailers – just in time – is a challenge for every manufacturer, and the majority turn to third party logistics companies to handle this specialist area of the business for them.
Dr Oetker has entered into a three year contract with Wincanton for the management of its chilled national warehousing and distribution operations. The contract will involve the handling of more than 12 million cases of chilled convenience products per year and provide a flexible solution that is able to satisfy Dr Oetker’s reworking and repacking requirements.
“The added value rework services Wincanton offers demonstrated to us that it has formed intimate relationships with both retailers and manufacturers, which is crucial to delivering a total supply chain,” said Rachael Lorman, head of supply chain, Dr Oetker. “The fact that Wincanton is able to provide such a service will allow us to focus
on the manufacturing process.”
Weetabix has outsourced its distribution operation, which used to be handled in house using Weetabix’ own fleet of vehicles, to Baylis Logistics. A 24-hour operation for the delivery of Weetabix breakfast biscuits as well as Alpen muesli, Ready Brek and more recently the Oatibix and Oatiflakes brands is now run from Baylis’s Leighton Buzzard site, which includes electronic data interchange (EDI) capture, online tracking and proof of delivery. Baylis Logistics will manage the stock collection (over 10,000 deliveries are made per year involving the handling of two million cases); as well as order booking and radial distribution via its shared user network to both independent and wholesale outlets.
For its line of own-label chilled deserts, Uniq has chosen Culina Logistics to manage its storage, stock control and the collection of inbound stock from two Uniq production facilities in the UK. Orders are received by EDI and picked using hand held radio data transfer scanners. In excess of 200 different SKUs will be delivered by Culina to around
450 drop points, at a capacity of over 15 million cases of product per year.

Environmental considerations
With the high number of product and journeys involved, environmentally friendly logistics are also a growing concern for manufacturers and retailers alike as consumers become increasingly aware of ‘food miles’ and energy consumption in the supply chain.
At the annual Logistics Debate, organised by SCALA Consulting, Chris Robinson, international supply chain manager, Tetley Tea said that Tetley had achieved efficiencies in its logistics processes which were both environmentally friendly and beneficial to the company.
“The number of vehicle loads between the factory and the warehouse has reduced by 28% and our density per pallet has increased by up to 50% through the introduction of new soft packs,” he said. “We are working on ensuring that we minimise our empty running; and have achieved a yearly utilisation of around 80% by carrying return loads for many organisations and specifically collaborating with our suppliers and customers to ensure we have a ‘best fit’ solution.”
Coca-Cola Enterprises (CCE) has recently opened its new £30 million (€44 million), energy efficient, high-rise warehouse in the UK, which will significantly improve the distribution of its brands including Coca-Cola, Diet Coke and Fanta in London and the South East of England. Designed and installed by FKI Logistex, the warehouse provides on-site storage for the first time at CCE’s Edmonton production plant thereby eliminating the cost of double-handling operations when shipping stock off-site to local warehouses, and saving 37,700 journeys – a saving of 77,600 miles per year, according to the company. All lighting is sensor activated, so lights and power are only used when needed.
“This is the largest single amount that CCE has invested in a project for 10 years and will ensure that our facility is as efficient on time and energy as possible,” said Stephen Moorhouse, head of GB operations, CCE.
The warehouse is 35 metres high and will house approximately 25,200 pallets. It is linked to five bottling lines, handling 500ml and 2 litre plastic bottles primarily, and can receive 200 pallets and despatch 300 pallets per hour.
International third party logistics specialist Christian Salvesen’s Temperature Controlled Business Unit has recently launched a series of trials into alternative fuels aimed at reducing the company’s carbon footprint and, according to managing director Paul Mohan, potentially reducing its current business fuel costs.
The trials will compare the performance and benefits of liquefied natural gas and biodiesel fuel, as well as investigate the potential of cryogenic technology to reduce the environmental impact of the temperature control systems necessary to comply with food safety requirements.
“These trials of ‘greener’ fuels flow from a worldwide demand for less pollutant engines that decarbonise the environment by cutting CO2 emissions, and growing interest in renewable energy,” said Mr Mohan. “Issues of climate change and pollution face the industry as a whole and we are proud that Christian Salvesen’s business unit is at the forefront of trialling and ultimately introducing significant improvements to reduce our carbon footprint.”
Hyster Europe has invested heavily in developing a range of fork lift trucks that use hydrogen fuel cells that convert hydrogen and oxygen into electricity. The system works like a battery but does not ‘die’ as long as fuel is present; and the technology can be used with minimal changes to any standard industrial truck. According to Hyster, the technology is 99.99% reliable and 98% recyclable. Benefits include a smaller carbon footprint, improved fuel efficiency and fewer refuelling stops, which, Hyster says, can contribute to a reduction in fleet size of one truck in 20.