distribution

Welsh rural affairs minister Elin Jones has launched a project designed to support the dairy industry in Wales to improve the efficiency, sustainability and added value of the dairy supply chain.

The aim is to assist those involved at various stages along the supply chain to work together to identify more effective ways of operating to ensure maximum efficiency.

Elin said: “The project has been developed to achieve the relevant objectives identified in the strategic action plan for the Welsh dairy industry to increase efficiency and to add value to commodity produce to gain the maximum advantage.”

Rents fall for logistics warehouses
May 2010

According to Jones Lang Lasalle's latest research, over the last 12 months prime distribution warehousing headline rents decreased across all main distribution warehousing markets.

Rents declined by more than 20% in Edinburgh, by 12.5% in Glasgow, by 8.3% in Leeds, by 6% in Manchester and by 1.6% in London year-on-year.

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The government has approved a scheme to build a new deep sea terminal alongside the existing facilities at Avonmouth.

It will be built partly on land reclaimed from the River Severn and will enable Bristol to handle some of the world's biggest container ships, which are currently unable to fit through the narrow lock entrances at the existing Avonmouth docks.

The increase in capacity will mean the Port of Bristol will be able to handle an extra 1.5 million twenty-foot equivalent container units a year enabling the port to serve regions outside the south west, such as the West Midlands, even more effectively.

Farmers’ co-operative First Milk has signed a contract with Bibby Distribution worth £50m to provide a farm collection service in west Wales, as well as retaining a similar contract in Scotland and north Cumbria.

The family-owned company has also secured a contract for the nationwide management of First Milk’s secondary distribution operation, which is scheduled to start in the summer.

Bibby Distribution will be responsible for collecting around 3.5 million litres of milk from farmers every day, delivering it directly to First Milk creameries and First Milk customers under the national secondary deal.

Using innovation and technological advances Bibby aims to reduce logistics costs.

On the national secondary operation Bibby will work alongside Lloyd Fraser, which will provide the farm collection service for First Milk in central England and east Wales.

Bibby Distribution divisional director Ian Firth said: “We have been working with First Milk since the mid-90s and it has always been part of our strategy to grow our presence in this valued sector.”

UK shoppers will spend £7.2bn on food and grocery shopping online by 2014 – nearly double the figure for 2009, according to new research from international grocery analysts IGD.

In 2009, 13% of adults have shopped online for groceries – an increase of 63% on 2006.

Three out of five (61%) online grocery shoppers use more than one online store for their food shopping.

Half (49%) would like to try other supermarket websites, but many are put off by the perceived effort involved.

Joanne Denney-Finch, chief executive, IGD, said: “Our research shows there is a great opportunity for grocery retailers and manufacturers to encourage shoppers to try online food shopping.

“People are increasingly mixing the channels they use for their weekly or monthly shop. Many are choosing to visit their local store on a regular basis, while purchasing a number of bulk items, like tinned foods and toiletries, online less frequently.

“The future of grocery shopping is multi-channel, with people shopping in different ways and using various outlets – whether convenience stores, online or hypermarkets.”

According to the Office for National Statistics, 64% of people have shopped online at some point, but only 13% have bought food or groceries in the past year.

More than six in 10 (61%) current and potential online shoppers also said that removing delivery charges would be a key trigger for increasing online grocery shopping.

Masternaut, the vehicle tracking and mobile resource management provider and Ortec, which offers advanced resource planning, have joined forces to interface and integrate their systems.

The partnership will allow both companies to provide a wider range of products.

“The combination of our route and transport optimisation software and Masternaut’s solutions allows our customers to easily organise and monitor their distribution activities in real time,” said Olivier Serfaty, Ortec France’s sales and marketing director.

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Euroway Group has launched a fleet management service, FleetSure, designed to cut the total cost of ownership while maintaining flexibility.

The FleetSure programme comprises of three main elements: FleetSure, FleetSure Plus and FleetSure Connect, covering traditional fleet management services, but with the additional provision of insurance and telematics options.

Mark Howell, group commercial director at Euroway, said: “With the FleetSure programme, we provide a fully comprehensive range of services across the whole fleet management spectrum and what sets us apart from other companies is the way we go about delivering them to our customers.”

The Co-operative Group aims to improve communications with suppliers for its 3,000 food stores around the UK using an Axway B2B system for process automation and collaboration.

It is also incorporating Axway’s business activity monitoring system for added visibility into business processes and the supply chain.

The aim is to automate business processes and documents, including orders, advanced shipping notices, dispatch notes and invoices, for a more efficient integration between the retailer’s back-office systems and its suppliers.

The first phase of the project, which manages store provision and replenishment, has been implemented.

Mark Hale, the group’s director of food retail information services, said: “Axway's solutions will support The Co-operative in its ongoing commitment to controlled growth by reducing costs, enhancing relationships with suppliers and enabling us to be even more demand driven.”

FTA calls on politicians to invest in infrastructure
September 2009

The Freight Transport Association (FTA) has called on politicians to invest in infrastructure despite the recession. The FTA has said that by building a more efficient transport network, politicians could help rebuild the UK economy.

The association will be taking this message to party conferences to try and influence manifestos ahead of next year’s general election.

James Hookham, the FTA’s director of policy, said: “Having a transport network that’s fit for purpose is not an optional extra for any country looking to have a successful economy. Every industry relies upon transport, whether it’s getting goods to market or simply ensuring there’s paper for the photocopier, but congestion, whether it’s on roads or on the rails, not only impedes Britain’s ability to compete, but can also increase our carbon emissions.”

It is urging politicians to take a more intelligent approach, to make full use of the infrastructure already available and encourage greater interchange between different modes.

It also suggests that while moving goods between road and rail or rail and sea can be challenging and costly, it is these areas where, with the right political backing and investment, Britain’s trading position could be improved.

James added: “We support the calls from politicians to put more freight on rail, not least to free up road capacity for those businesses that have no choice but to use them. However, politicians seem less enthusiastic when it comes to supporting the building of more rail interchanges or even boosting rail access for freight by bringing down access charges. Britain’s economic future needs them to put their might where their mouths are.

“Serious infrastructure investment and improvement cannot be sorted out in four or five years, which tends to be the focus of most politicians, who always have their eye on the next General Election. Instead of wondering whether it will be they or their political opponents who get to cut the ribbon on an improved stretch of road or new port, they need to be thinking about the ongoing economic interests of the country.”

Sacred cows are being slaughtered, shibboleths abandoned, and traditional practices challenged as companies search for ways to reduce the costs of distribution. Malory Davies finds that minds are opening to innovative shared user and network concepts.

Rail electrification for inter-city lines advertised

Network Rail has invited expressions of interest in work on a major railway electrification programme which it says could be worth between one and one and a half billion pounds to contractors.