Greggs optimises distribution operation
as part of investment programme
Greggs is using Paragon’s routing and
scheduling software to optimise the
performance of its distribution operation
as part of a £100 million investment
programme that is reshaping its supply
chain within the UK. Most recently, the
UK’s leading bakery food-on-the-go
retailer was able to model transport
requirements following the consolidation
of its Edinburgh and Glasgow bakeries to
improve fleet utilisation by over 30% and
remove almost 900 miles a week from its
local plans.
“Following the decision to develop a centre
of excellence that would service all shops
in Scotland, we had the opportunity to
examine our transport plans to target
cost reductions and improve standards,”
explains Richard Penna, Group Logistics
Manager at Greggs. “The Paragon routing
and scheduling software quickly enabled
us to identify where improvements could
be made and create highly-efficient multi-
drop route plans that would better serve
our retail network.”
Greggs had previously operated 35
18-tonne rigids, split between the
Despite the distance of many vehicle planning to achieve optimum performance
journeys increasing since the site and support our transformation into
consolidation – with 80 Edinburgh stores the leading food-on-the-go retailer,”
now being fulfilled direct from Glasgow concludes Penna.
– Greggs has been able to significantly
reduce the overall mileage travelled
through improved planning. This has
contributed to a fuel saving of more than
2%, equating to reductions of around 35
William Salter, Managing Director of
Paragon Software Systems commented:
“The food-on-the-go sector is rapidly
expanding in the UK, with retailers
tonnes of CO2 emissions per year. investing heavily in product and service
serviced each of the 260 shops twice a “We are using the Paragon software to at different times of the day. Specialists
day. With the planned expansion of the regularly review the efficiency of our such as Greggs face growing pressure
Glasgow site to cover all Scottish shops , multi-drop route planning across the on their supply chains to ensure their
the company used Paragon’s Multi Depot UK, as well as remodel specific areas of customers have the choice and availability
software to undertake a strategic review the operation as part of a larger major they demand. The flexible nature
of the transport operation. As a result, change project. We are making record of Paragon’s routing and scheduling
Greggs has been able to resize its fleet to levels of investment in our infrastructure software means that Greggs can use it
just 24 commercial vehicles by optimising to create a blueprint for logistics that can both operationally and strategically to
multi-drop route plans, realigning driver be applied across the business. This needs achieve the highest levels of efficiency,
shifts and removing a trunking operation. to be backed-up by best-practice route utilisation and service performance.”
Edinburgh and Glasgow bakeries, that
innovation, often targeting peak demand
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