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......ffaasstteerr,, ssiimmpplleerr,, ttooggeetthheerr
Creating a world-class Supply Chain for
Network Renewal
Supply CChhaaiinn blueprint
Our aim is to establish a Supply Chain teamwith three core values:
• passion • courage • integrity •
The new-look Supply Chain will be based on anintegrated, end-to-end approach, managing allaspects of transportation and distribution fromthe factory gate to the store back door.The overall goal is to create a Supply Chainbased on a number of key principles:
• paperless• stockless• accurate• simple• automated where appropriate
Strategy
Supply Chain Goal
Sainsbury's multi-million pound investment in itsSupply Chain will create one of the most advancedgrocery distribution operations in the world.
Over a three year period the Supply Chain will betransformed to provide improved on shelfavailability with a paperless, stockless, accurateand flexible service designed to meet the currentand future needs of the business.
The Supply Chain strategy, launched in theautumn of 2000, covers four key areas ofactivity:
• network renewal • systems and technology• processes and partnerships• people and culture
Modernising, upgrading andexpanding the distribution centrenetwork and transport operationsto provide improved availabilityand accuracy at lower cost
Systems &Technology
Replacement of all existingwarehouse management, transportand supply chain planning systemswith state-of-the-art technology
Processes &Partnerships
Creation of new processes whichlink all elements of the supplychain – fromsuppliers to theshelf – toprovide themost efficientservice at leastcost, as well ascreating a newlevel of co-operationthroughpartnershipswith colleagues, unions and suppliers
People + Culture
Introduction of new attitudes,skills and flatter managementstructures to achieve a flexible,responsive and committedworkforce
Improved performance will beachieved through reductions incost per case, improvedavailability, reduced stock loss,greater accuracy of deliveryand schedule adherence whileachieving required levels ofservice
Performance
Supply Chain Vision
“Excellent service at unbeatable cost, delivered by great people”
Leading transformation
Supply ChainSainsbury’s SupermarketsHolborn Business Centre
33 HolbornLONDON EC1N 2HT
Telephone: 020 7695 6000
November 2001
Stores
The heart of the Supply Chain
Programmes
StokeRye Park K-Lines - JJoohhnn RRooggeerrss
Fulfilment Fcts 1 - SStteepphheenn OOttttaawwaayy
Fulfilment Fcts 1 - PPeetteerr NNiillaanndd
Frozen Network
FGP/TO - RRiicchhaarrdd DDiicckkssoonn
Replatforming - MMiikkee AAddaammss
Picking Centre - PPaauull WWooooddss
Hams HallWalth’m Pnt
GreenhamPark
ElstreeStone
Park RoyalGorton
Strategy & Migration
Planning
JJoohhnn PPeerrmmaann
Opening andclosure timings
New Sites
Warehouseconcepts
InfrastuctureDelivery
IIaann PPaacckkeerr
Site design
Buildings
Automation
Systems & Core
Processes
MMiikkee AAddaammss
Phoenix
Firewing
SABRE/SCION
Replatforming
B2B
AssociatedSystems
Dependant/Processes
Capabilities
IIaann FFiiddlleerr
Supplierconformance
Store friendlyagreement
Operationstimescales
Single Units
Operations& TacticalPlanning
NNiiggeell BBaasseeyyAAnnddyy SSaannddeerrssoonnAAnnddyy SSttrruuddwwiicckk
Teams of people to runnew sites and
centralsystems
Short termchanges
(1-12 months)
Transport &Consolid-
ation
RRiicchhaarrddDDiicckkssoonn
TransportPlanning
Importationand GlobalLogistics
Strategy Management - Richard DicksonBusiness Requirements, Assumptions, Vision, Cohesion, Direction Setting
Programme Management - Mike AdamsOverall Resource Management, Reporting, Escalation, Comms,
Priorities, Risk Managment, Quality and Audit
Key Programme Contacts
The key principles in developing the new
Supply Chain network involve creation of an
holistic, end-to-end approach to distribution.
This will embrace fully electronic
collaboration and communication with
suppliers, allow for continuous replenishment
of products with minimum handling and
provide a more ‘store friendly’ service.
The new network currently being developed
consists of:
•• PPrriimmaarryy CCoonnssoolliiddaattiioonn CCeennttrreess ((PPCCCCss))– handling shipments from local suppliers, holding stock and replenishing fulfilmentfactories
•• FFuullffiillmmeenntt FFaaccttoorriieess ((FFFFss)) – store facing multi-temperature sites handlingaround 10,000 lines of high volumecommodities (excluding frozen products). Thefulfilment factories will handle waved deliveriesto stores on a round-the-clock basis, keepingstock levels to a minimum. The plan is for ninefulfilment factories, six automated and threemanual, in the new network.
•• KK LLiinnee ddeeppoottss– two specialist distribution centres usinghighly-automated sorting systems enablingthem to efficiently pick low volumes of a widerange of up to 16,000 slow moving and bulkyproducts
•• FFrroozzeenn ffoooodd ddeeppoottss– two dedicated frozen food warehousesdelivering products direct to stores
Each of the new fulfilment factories will bearound 650,000 sq ft in size, covering 40 acresand costing £70 million. The automatedhandling systems and other mechanicalhandling equipment accounts for well over athird of the overall cost.
Each fulfilment factory will have a range thatincludes ambient, chill and produce lines andwill serve over 70 supermarkets and up to 150smaller format stores.
Key Programme Milestones
PPrroojjeeccttKKEEYY
SSiitteeAAccqquuiissiittiioonn
❍ MMHHEEIInnssttaallllaattiioonnSSttaarrttss
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SSiitteeHHaannddoovveerr
■ SSiitteeFFuullllyyOOppeerraattiioonnaall
22000011❍
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HHaayyddoocckk RRootthheerrhhaammSSttoonnee SShhiirree PPaarrkk
22000022●
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HHaayyddoocckkRRootthheerrhhaammCChhaarrllttoonnEEmmeerraalldd PPaarrkk
FFoorreeccaassttiinngg
LLaannggllaannddss PPaarrkk BBuunnttiinnggffoorrddHHooddddeessddoonn BBaassiinnggssttookkeeEEmmeerraalldd PPaarrkk EEllssttrreeeeCChhaarrllttoonn RRuuggbbyy
22000033■
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RReepplleenniisshhmmeennttPPllaannnniinngg
22000044
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Hams Hall
FFUULLLLFFIILLMMEENNTTFFAACCTTOORRIIEESS
Waltham Point
Greenham Park
North London
South East London
KK LLIINNEE FFAACCTTOORRIIEESS
Stoke
Rye Park Phase 1
Phase 2
TTEECCHHNNOOLLOOGGYY
PkMS (Phoenix) Launches
RETEK (Cygnet) 1
TTRRAANNSSPPOORRTT NTSC launched
Suppliers
DDAAYY IINN TTHHEE LLIIFFEE........
With a peak weekly capacity of up to 2.4million cases, each fulfilment factory willoperate on a 24/7 basis, with picking andsorting taking place on average 20 hours eachday.
Each of the new sites will act as a ‘mother’depot to more than 200 supermarkets andsmaller format stores, with nearly 2,000vehicle journeys each week.
The 700-strong workforce will have a varietyof shift patterns to cover ambient, chill andproduce picking. New skills and ways of
working will be involved in the highlyautomated environment.
Continuous throughput of products will mean avehicle leaving or arriving at the warehouse onaverage every two minutes around the clock.
Typical daily routines will involve chilledproducts arriving in waves from 5am onwards,being held in a 1,000 pallet capacity buffer,ready for pallet and case stripping onto theauto retrieval sortation system. Advance chilldeliveries will start leaving the site by midafternoon and continue as either dedicatedloads or combined with ambient productsright through into the late evening.
Ambient products will be received around theclock ready for sorting via a two-tier crossbelt sorter with more than 170 chutes and upto 4,000 pick slots.
Customer centred delivery focustaking account of the needs of thesupply chain, stores and customers
Collaboration with suppliers, sharing data,working jointly to deliver value to thecustomer within a 24/7 paperless system
● Current Sites
▲ Sites under construction
■ Potential Sites
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PPrriimmaarryy CCoonnssoolliiddaattiioonn CCeennttrreess