Tim Edwards

Summary

• Development of the Co-operative Group• Recent history• Development of the distribution network• Requirement for Yard management• Pilot site• Implementation and beyond

Cooperative Group History

• 1844 -- Rochdale Pioneers Society established based on their eight 'Rochdale

rules', including distributing a share of profits to members• 1863 -- Co-operative Wholesale Society (CWS) established• 1896 – Co-operative Society acquires its first farm• 1900 -- A total of 1,439 co-operative societies now registered• 1942 -- First self-service shop opened by the London Coop• 1973 -- Scottish CWS merged with CWS • 1992 -- The co-operative stocks Fairtrade products in every food store• 2000 -- CWS and CRS merge, creating the world's largest consumer co-operative• 2007 – The Co-operative Group and United Co-operatives merge• 2009 -- The Co-operative Group acquires Somerfield,

Co-operative Group today• UK’s largest mutually owned organisation

• t/o £13.7 bn (2010)• Profit £414 m• Employees c. 110000• Outlets c. 5200

• Wide range of businesses – “cradle to grave”

• Food• Farms• Finance (Banks, Insurance, Investments)• Funeralcare• Travel• Pharmacy• Motor Group• Legal services

The Co-operative Food now

• UK’s largest convenience store operator • UK’s 5th largest food retailer• Full range of food and non-food products• Award winning range of own label products• Numerous awards for corporate social

responsibility and ethical approach• 85% of Cooperative Society volume • Supplier to Independent Societies• Deliveries to 4046 outlets of which 3000 are Co-

operative Group stores

• 1 Regional Composite Distribution Centre

• 17 Ambient only RDC’s

• 13 Chill only RDC’s

• 4 Frozen only RDC’s

• 1 National Distribution Centre

• 1 Stockless Cross-dock Platform

TOTAL 37

Network (inc Somerfield) 2003

Project Lidia

Logistics Infrastructure Development to Improve Availability

Conclusions of strategic review in 2003/4 • Move to composite RDC’s• NDC for slow-moving ambient products and bond• Move to composite deliveries where practical• Use of stockless cross-docking platforms for outlying regions• Requirement for 24/7 operation• No existing sites suitable for conversion to RDC’s or NDC

Review post Somerfield acquisition• 2 sites in network usable as composites• Further integration with Independent Cooperative Society sites

• 5 Regional Composite Distribution Centres

• 1 Twinned RDC

• 4 Ambient only RDC’s

• 2 Chill only RDC’s

• 2 Frozen only RDC’s

• 1 National Distribution Centre

• 1 Stockless Cross-dock Platform

TOTAL 16

Network –Current -2011

• 7 Regional Composite Distribution Centres

• 1 Twinned RDC

• 1 National Distribution Centre

• 1 Ambient only RDC

• 2 Stockless Cross-dock Platforms

TOTAL 12

Newhouse

Lea Green

Birtley

Castlewood

Thurrock

Andover

Plymouth

Avonmouth

Coventry

Inverness

Carrickfergus

Huntingdon

Network –Post Lidia-2013

Network Change 2005-2013

• 6 new RDC’s built

• 2 RDC’s redeveloped

• New NDC built

• 32 sites closed

Project Odyssey – Systems Requirements

New network required new systems:

• Warehouse Management System (WMS) – first implementation 2006

• Transport Execution System (TES) – first implementation 2005

• Bond Management – implemented 2010

• Time Management – first implementation 2010

• Labour Management – in pilot

• Yard Management – in pilot

YMS Requirements

Greater complexity of new RDC’s:• Typically 2-3 x size of old sites• Multi-chamber• Greater use of cross-docking and trans-shipments• Wide range of vehicle/trailer types (c.20/site)• Requirement for computerised solution

Objectives:• Reducing operating costs by minimising shunter moves • Improving yard visibility by providing a real time view of

all vehicles within the yard• Reducing the time currently spent locating and allocating

vehicles • Reducing potential delivery delays from being unable to

locate the correct vehicle type

Key Requirements

• Interface from WMS for outbound loads• To define and manage the physical and time

based constraints on yard usage• Automatically (in real time)

• allocate the most appropriate vehicle to an outbound load. (Where feasible allocate inbound vehicles)

• locate returning vehicles to either an allocated dock or bay - interface to TES

• to create shunter tasks to move loaded vehicles from dock doors to bays or empty vehicles from bays to dock doors as required to support loading.

• Minimise shunter tasks whilst maintaining a smooth workload for shunters.

• Shunters to use hand held or truck mount devices.

Key Requirements (contd)

• To track the status of all locations and vehicles within the yard. (e.g. Empty, Loaded, Allocated etc )

• To allow for manual vehicle moves or allocations• To provide management information in regard to yard,

vehicle, shunter utilisation and shunter performance• To manage the receipt and dock / bay allocation of

transhipment deliveries from other Co-operative Group warehouses

• To manage inbound supplier deliveries• To manage de-kitting and associated docks

Although not in scope of the initial project possible future requirements include:

• To accept an interface from TES for vehicle departures, arrivals, ETA’s, VOR etc.

• Management of tractor units

System Integration Overview

Outbound loads Status updates

ASN’s Systems

Outbound loads Status updates

Returning vehicle Locate in yard request

Vehicle arrivals, departures, ETA, yard

location confirmed

WMS

Yard Management

TES

Replenishment Systems

Transport Scheduling

Andover CDC – Pilot Site

Composite RDC’s 2013

RDC Stores Throughput Warehouse Product range Vehicles Outbound

    (Cases/wk) (Sq ft) Ambient Chill Frozen Inbound Loads

Thurrock 645 1,100,000 325,000 Y Y N 349 1375

Birtley 299 580,000 280,000 Y Y N 184 725

Lea Green 686 1,600,000 585,000 Y Y Y 507 2000

Newhouse 618 1,450,000 505,000 Y Y Y 459 1813

Andover 435 1,135,000 478,000 Y Y Y 475 1875

Avonmouth 475 1,500,000 435,000 Y Y N 360 1419

Castlewood 530 1,400,000 487,000 Y Y N 444 1750

Timeline to Pilot

• 2007 – RFI issued• 2008 – C3 chosen as supplier• 2009 - Project held due to Somerfield integration• 2010

• Project re-activated• Pilot implementation approach agreed• Andover RDC chosen for pilot

• 2011 – Pilot implemented

Integration Phase 1

• Scope • feed from WMS identifying loads created and available

• Options• Excel file transfer• Web Services

• Considerations• Coop unfamiliarity with Web Services• Flexibility for the future• Learning opportunity

• Decision • Use of Web Services• C3 support during development

Integration Phase 1

• Challenges• Lack of in-house knowledge of Web Services• Development to fixed deadlines

• Effort• Technical training sessions• Use of both on-site and remote support

• Benefits• Implementation of agreed design• Achievement of business case objectives• Development of in-house expertise for future

integration

What next?

Integration – Phase 2

1. Interface with TES• TES to Yard Smart

– Automatic creation of incoming gate events – Updating of vehicle ETA– Event completion when vehicle crosses geo-fence– Automatic update of zone and task on task completion in TES– Vehicle powered and un-powered from TES– Request vehicle position from Yard Smart– Send vehicle XY coordinate to Yard Smart– Automated completion of gate out event

• Yard Smart to TES– Message sent when task for powered vehicle created

Integration – Phase 2

2. Tighter Interface with WMS• WMS to Yard Smart

– Updated shipping runs when details change

– Route cancellation

• Yard Smart to WMS– Door selected for shipping run

– Trailer resolved for shipping run

3. Interface with visual display boards• Automated messaging to vehicles awaiting unloading

Questions?