Spar suppliers have slashed the road miles they cover to reach the symbol group’s wholesalers by 85% after Spar UK consolidated its supply chain with logistics firm Oakland.
Under the Spar central consolidation scheme, suppliers deliver their products into Oakland’s depot in Redditch, Worcestershire. Oakland then arranges for a full load, made up of lots of different suppliers’ products, to be delivered to each of Spar’s five regional wholesalers every day.
Before the scheme, suppliers had to deliver directly or buy space on a lorry making drops at a number of sites in the region. This usually meant higher costs and restricted delivery times.
The central consolidation scheme, which started three years ago, now handles four million cases per year and has reduced carbon emissions for deliveries between the supplier and wholesaler by 2,468 tonnes.
Oakland MD Dean Attwell said the scheme also improved the shelf life of perishable products as the daily deliveries it made to each of the wholesalers allowed fresh food to be dropped off in smaller quantities.
“If someone orders chicken pasta salad, they may use seven cases a day - but the minimum order from the supplier is 20 cases, so the shelf life is eaten into at the depot and ultimately might not be sold to the retailer,” Attwell said. “With the central consolidation scheme, they can order exactly what they want.”
He added that wastage among the wholesalers had fallen by 15.5% - equivalent to 3,640 cases.