The Client
Wincanton is a European leader in the design and delivery of advanced supply chain solutions. With operations in 15 countries, a staff of over 26,000 and an annual turnover of c. 1.7bn / 2.4bn, it offers a broad spectrum of services that enable its clients to optimise their logistics requirements at a local, national or regional level. Wincanton serves some of the worlds biggest companies in some of the most complex sectors, such as automotive, retail, petrochemical, FMCG and manufacturing. It is currently supply chain partner to Tesco, the leading supermarket chain in the UK grocery trade. One of the key factors in Tescos success is supply chain excellence. Wincanton plays a major part in this, offering a fast, reliable service which flexes efficiently and effectively to Tescos needs, be it supporting the launch of a new store format, improving the efficiency of a seasonal promotion or re-engineering the supply chain.

The Need
As part of its ongoing relationship with Tesco, Wincanton was required to handle the logistics of the January 2004 Deal event. This activity required over 40,000 pallets to be delivered to 640 plus stores in 4 delivery phases prior to and post Christmas. Given the volumes involved and the complexity of the assignment during this key trading period, Wincanton devised a plan which enabled the Tescos DC to outsource its operation, thereby allowing it to focus on standard stock delivery in the run-up to Christmas. The plan necessitated regional distribution utilising third parties. SW was approached to handle the warehousing and distribution of product in the South West of England. It was estimated that over 3,000 pallets would be received by SW for onward shipment in a 3-week period to 26 Tesco stores. SW was selected by Wincanton on the strength of its facilities and experience in dealing with large volumes for time-defined delivery to the retail trade.

The Solution
The first step for SW was identifying the resources that would be required in terms of warehousing, technology, vehicles and manpower. It was clear that multi-site warehousing would be needed, involving cross-dock operations, together with additional driving resource. Having established this, SW then evolved a watertight delivery schedule taking the customers estimates of volumes per store per promotional phase and overlaying this data against resource, store delivery, route planning and budgetary constraints. Additionally, this operation had to maximise efficiencies and fall within budget. SW, having extensive experience of Tescos stringent delivery requirements, was also able to anticipate and plan with these in mind. A comprehensive and multi-dimensional plan was speedily developed and approved by Wincanton. Given the complexity of the operation, it had to be in a clear, logical format that all parties could understand and follow. Implementation was clearly key to success. SW assigned an operational team dedicated to the job. It ensured it was appropriately resourced in terms of manpower, vehicles and equipment and that all staff were fully debriefed. Every member of the SW team knew what stock was required in what phase, where it was located and when and where it was to be collated and delivered.

The Results
Within a 3 week period, SW received, stored, picked and distributed 3172 pallets over 4 phases to 26 Tesco stores. It achieved a 100% accuracy rate and there were 0 stock losses According to Lynne Watson, General Manager of Wincantons Seasonal Events Team, the January 2004 Deal was a great success the largest and most successful ever experienced - with almost all stock selling through in the required timeline without further mark-downs in price. Wincanton were delighted with SWs performance. In a letter to the company following the event, Lynne Watson wrote: Your depots contribution to this success has been significant . I have been very impressed by the professional way in which your site undertook this project from the start The level of commitment and energy given to this project has been second to none: you should be proud of your staff and their abilities The strength of your team is incredible, no matter whom I spoke to all were aware of the event and what was happening. They are a credit to you!

More case studies:
Amazon
Schneider Electric
Green Umbrella Publishing
Wincanton
Honda