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Sainsbury's cuts transportation costs, reduces emissions and improves store service with integrated Paragon system
October 12 2009 11:29 AM
Sainsbury's is seeing the benefit of rolling out an innovative Paragon implementation across its national distribution network. Sixteen DCs are now benefiting from ITMS – Sainsbury’s Integrated Transportation Management System – which integrates Paragon’s planning optimization with truck tracking to dramatically enhance the accuracy and execution of each day's complex transportation plans. The system has increased driver productivity by 8%, improved empty running by 12%, cut store turnaround times by 15% and increased on-time delivery levels by 17%.
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For over three years, Paragon software has underpinned the efficiency of daily deliveries from Sainsbury's 19 distribution centers to 527 supermarkets and 276 smaller stores, as well as the allocation of tractors, trailers, straight-trucks and drivers to routes. Using Paragon’s “resource managed planning” capability, which plans routes against the individual driver shifts and available vehicle resources, Sainsbury’s ensures that each day’s multi-shifted transportation plans are realistic and achievable. Now, Sainsbury’s is capitalizing on tightly integrating Paragon Routing & Scheduling Optimizer and Fleet Controller with Isotrak's Active Transport Management System (ATMS) to introduce unprecedented levels of certainty and control into the operation.
“Uncertainties are a fact of life for any transportation operation so we build contingencies into our schedules, but they add costs,” says Darren Jones, Sainsbury's Head of Logistics Strategy. “The more uncertainty that can be eliminated, the greater the control over costs.” By using Fleet Controller to monitor the execution of the delivery schedule and Isotrak's ATMS to capture real-time data such as vehicle location and driver tachograph outputs, Sainsbury's gets accurate data with real value. When vehicle turnaround time at stores emerged as a critical factor, for instance, the planned contingency was cut by a consistent 15% by setting store targets.
But there's more to it than this, as Darren Jones explains, “Fleet Controller is looking forward all the time, making sure pre-set parameters such as delivery windows are met. If any criteria look like being breached, it will re-spin the schedule to avoid the breach.” The implications of this are significant. If drivers are predicted to return early or late, Paragon automatically reallocates loads that will still meet promised store delivery windows (avoiding curfews and delivery restrictions), are achievable within the planned shift, and are efficient within the overall plan – to maintain exceptionally high driver and vehicle use levels.
Sixteen Sainsbury’s DCs now use ITMS, and four have undergone the full transportation optimization process. ITMS now delivers direct and measurable benefits in three separate areas: by improving service to stores; contributing to Corporate Social Responsibility (CSR) goals; and efficiency improvements across the four ‘fully optimized’ sites.
In terms of service to stores Sainsbury’s is now benefitting from a 15% reduction in overall store turnaround time while also improving the number of deliveries making it to stores within agreed time windows by 17%. With CSR goals in mind, the Sainsbury’s team has been able to report a 12% improvement in empty running levels with 2,000 fewer empty vehicle journeys per week, and over 140,000 gallons of fuel being saved across the four sites, cutting 3.1 million lb of CO2 emissions. Efficiency improvements have also been realized in terms of an 8% increase in driver productivity and an overall 3.8% reduction in distance travelled per year.
“We are delighted with the success of this implementation for Sainsbury's,” says Paragon Managing Director William Salter. “It required extensive two-way integration between Paragon and Isotrak but it was well worth the development effort. Plans for large, multi-shifted operations like this can unravel during the day, losing some of their original efficiency, but Sainsbury's can now rework and optimize plans throughout their execution.”
Notes to Editors:
Paragon Software Systems, Inc is committed to excellence in providing routing and scheduling software solutions for companies wishing to optimize their transportation operations. The company has an unparalleled track record of successful software implementations with over 1,500 systems installed in more than 33 countries worldwide. Paragon provides software solutions for operations ranging from 10 trucks based at a single site to hundreds of trucks running out of several sites.
Paragon software is used by 3PLs and private fleet operators for routing and scheduling optimization on a daily basis; managing transportation resources; rationalizing fixed routes; and strategic transportation planning and modeling.
With clients including CEVA Logistics, Airgas, Exel Logistics, Toyota Material Handling, Ryder, BrandsMart, McLane, Honda, Canada Cartage, National Food Corporation, SCI Group and Safeway.com, Paragon has the experience to ensure that logistics problems are translated into software solutions that provide real benefits for customers.
Paragon solutions are helping hundreds of companies across the globe to cut transportation costs, improve operational efficiency, reduce planning time and raise customer service levels, and frequently support a company's strategic business growth objectives.
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Jane Geary |
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