About this Consolidated Distribution resource
This online resource has been created by the ECR UK Consolidation Centres Workgroup to provide a practical support guide to consolidated distribution.
Working with representatives from both the leading retailers and manufacturers, the Workgroup developed the resource to encourage the use of consolidated distribution as a means of:
- reducing road miles;
- reducing cost; and
- enabling truly sustainable supply chains.
Where can using consolidated distribution help?
Some examples of the type of business challenges which the use of consolidation can help overcome include:
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Change (offset)
- My customer wants smaller, more frequent deliveries
- My customer wants a shorter lead time
- My customer wants 7 day delivery
- My customer wants case / layer picked pallets
- My customer wants store deliveries
- My customer wants cross-docked store deliveries
- My customer is opening a new DC / wants me to deliver to more locations
- Part of my business has changed, leaving the rest inefficient (e.g. one retailer gone backhaul / FGP, channels have changed… etc)
- I’m a new supplier and need to understand supply routes
- I’m expecting high projected volume growth
- I am being asked to supply MU formats but cannot create them in house
- My customer wants me to deliver to geographically remote locations (e.g. Ireland)
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Current (reduce)
- I have an order tail of small deliveries to small customer locations
- I have lots of small inefficient deliveries
- I have to make deliveries direct to individual stores and outlets
- I have imported codes that go to a central location before being delivered to DCs
- I supply multiple categories but receive separate orders
- I supply multiple categories that have separate supply chains
- I have seasonal products
- I’m a new supplier with high projected volume growth
- I have a high degree of promotional activity with lumpy demand
- I have a large number of order tail SKUs with low sales volumes
- I cube out / I weight out a vehicle
- I know of many similar suppliers with the same challenges as me
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(Please note that this list is for illustrative purposes and as such is not exhaustive.)
What could the use of consolidated networks achieve?
Source: ECR UK, 2008
How this resource will help
This online resource is designed to offer support in;
- Understanding the alternative types of consolidated distribution available.
- Providing insight into the thinking and direction of major retailers.
- Identifying the approaches manufacturers are taking.
- Providing a directory and map of consolidation providers to act as a handy guide for businesses who need a consolidation service but are not sure who to contact.
- Highlighting some of the likely challenges in implementing the different consolidated distribution options and how to overcome them.
All of which are supported by case studies that demonstrate the benefits that other companies have already derived from the use of consolidation networks.
Acknowledgements
IGD and ECR UK would like to thank members of the ECR UK Consolidation Centres Workgroup for their support and contribution in developing this guide.
Co-Chairs:
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Ian Hill
Director of Logistics |
Simon Pearson
Head of Central Logistics |
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Members:
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Karen Wright
Food and Drink Cluster Manager |
Maria Chittenden
Head of Primary Distribution Development |
John Franey
Strategy Director Food Retail |
Sue McGeorge
Customer Supply Chain Development Manager |
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Richard Hastings
Head of Planning & Delivery |
Tony Edwards
Logistics Strategic Planning Manager |
Vijay Madlani
PCC Operations Manager |
Richard Parker
Head of Primary Distribution |
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Alan Williams
Primary Development Controller |
Rob Wright
National Distribution Controller |
Helen Heighes
Distribution Project Manager |
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Consolidated Distribution - Next steps:
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