Solutions Design - Transport

Wincanton won a 4-year contract with Sainsbury's to enhance transport operations, achieving 20% savings.

Background

Operating across more than 170 locations and with over 20,300 employees, Wincanton is a British transportation and contract logistics company that manages supply chains for some of Britain's biggest supermarkets and supply chains with revenue of more than £1.4bn.

Challenge

Sainsbury’s put their UK warehouse and transport operation out to tender. Currently supplying transport and warehouse solutions for some selected Sainsbury’s sites, Wincanton is bidding to become the sole transport provider for the entire Sainsbury's network, including Argos.

Following selection manage the implementation.

Solution

Libra provided the initial analysis for potential cost savings on initiatives devised by Wincanton in order to kick off the tender process and to show Sainsbury’s that the solution of a single transport provider was feasible.

Then supported from tender to the award of the contract providing additional project management of the solution design process including customer engagement, data analysis and assessment of solution design options to ensure due diligence was carried out.

Following award of the 4 year contract, managed the implementation of the initiatives in to the DC’s, meeting regularly with key stakeholders from both Wincanton and Sainsbury’s to ensure that savings were on target and on time.

An implementation document was created for each DC detailing the changes associated with the initiatives and outputs expected. Feedback on these was expected and any changes required were made to plans to ensure no issues.

Results

Wincanton secured a 4-year contract to oversee transport and distribution for Sainsbury's comprehensive logistical network, encompassing Argos. This partnership resulted in approximately 20% cost-savings in transport operations, achieved through four strategic initiatives aimed at refining the transport network. Libra took the reins post-contract, steering the execution of these initiatives, which encompassed new transport strategies at distribution centres and a store reorientation. This collaboration also facilitated a thorough overhaul of Argos' distribution system, focusing on cost-efficiency. Throughout this transformative process, a harmonious working rapport was maintained with both suppliers and the customer.