Combined UK Food Companies Networks

Libra Europe designed an Optimised and Consolidated Logistics Network producing £18m annual saving through modelled optimisation of transport, logistics infrastructure and people​

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Deliverables

• Consolidated 26 distribution centres and manufacturing facilities into 16​
• Reduced the combined annual logistics spend by 12.2% (£18m) from £148m to £130m through optimisation of transport, logistics infrastructure and people​
• Reduction in total radial delivery fleet requirement from 501 to 350 vehicles​
• Optimised the radial fleet mix increasing vehicle fill by 27.7%​
• Primary and radial net decrease in carbon output by 2,296 tCO2e. The equivalent of taking 499 cars off the road each year​
• Modelled ‘Blue Sky’ scenario of combined DC infrastructure for further development on the consolidated logistics network strategy​
• Good working relationship working in a challenging environment to ensure neither of the party's independency was compromised​

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The Challenge​

Increased costs in grain, energy, and fuel lead both companies to consider all options to save money. This included working in coalition with a direct competitor to more efficiently distribute their products. ​

Libra was tasked with valuing the quantum of potential efficiencies / synergies that could be gained through implementing a shared network based on the existing UK infrastructure excluding Ireland. ​

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Solution​

• Understand the existing logistics infrastructure capacities and capabilities of both companies​
• Model all primary and radial logistics activity across the UK​
• Produce an optimised logistics model that could be achieved for a combined service​

The combined networks would bake, pack, pick and deliver c.44,000 orders across a customer base of c.5,700 locations every week. This meant distributing c.1.1m baskets (c. 13m units) via their radial networks each week​

Once depot capacities and capabilities had been quantified, a baseline and optimised model were created within defined operational parameters that had been agreed with the clients. A number of scenarios were modelled and findings were fed back. This uncovered further possibilities and questions to build into the modelling to give the most optimised solution that both parties could agree on​

A detailed report was presented showing outputs, visual map representations, financial benefit and cost of change to achieve the combined logistics solution​

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