Somerfield is consolidating the bulk of its imports at a single warehouse in Banbury in a bid to take more control over its inbound supply chain.
Exel, which manages Somerfield’s alcohol imports at the Banbury depot, will now handle canned goods and non-food imports from the same site, saving Somerfield £1.5m in the first year alone, claimed Hugh Basham, MD of Exel’s shared user business.
Previously, these items would be delivered into depots at Avonmouth, Colchester and Winsford. By consolidating everything at one site, Basham said, Somerfield could cut overheads, reduce stockholding and boost efficiency by delivering to RDCs in full trucks.
Exel was also working with Somerfield on plans to consolidate some alcoholic and non-food lines at depots in China, South Africa, Chile and the US, he revealed.
Exel already has a 1m sq ft warehouse in southern China. “We are still in the discussion stages with Somerfield on consolidating some of its non-food here, but this could work on a factory gate pricing basis.”
Somerfield logistics development director Neil Rixon said: “With Exel’s expertise, there will be major opportunities to cut costs and increase efficiencies.”