Nisa-Today’s

Logistics Review

Nisa-Today’s was founded in 1977 and now has a Group turnover of some £15bn. Amongst other services, the company provides a range of purchasing and supply chain services to independent retailers and wholesalers for ambient, chilled and frozen products through its central distribution operations.

The current contract for the provision of ambient distribution services was awarded to Bibby Distribution in the mid 1980's since then the operation has grown considerably. Products are delivered nationally from two warehouses in Scunthorpe – providing some 450,000 square feet of storage space for some 50,000 pallets. The total number of products held is some 10,000 SKU’s with a 48 hour lead time for delivery to some 2,500 outlets.

Nisa-Today’s & Bibby invited Davies & Robson to carry out a full logistics review of the current operation and to identify ways to increase the throughput capacity to handle future growth.

Davies & Robson undertook a detailed audit of the current processes and operating costs. In addition to reviewing working practices, costs and service standards were compared with industry benchmarks. The study found that whilst the costs were competitive and the general standard of service high, by working together, further efficiencies and cost reductions could be achieved. Recommendations within the warehouse included improving the flow of product through goods inwards, reviewing the bonus targets for pickers, improving the phasing of replenishment and improving the quality of management information for improved decision making.

Within the transport function recommendations included accelerating the introduction of dynamic route scheduling, improving the quality of day-to-day planning information, reintroducing supplier collections and the greater use of subcontractors.

Following completion of the review, point working parties have been set up to implement agreed changes. Davies & Robson was retained to provide specialist support and assist with the development of a five-year strategic plan. ”

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