This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.;2714294;369307;211;0/?ft_width=1&ft_height=1&url=16151650

Nestlé turns to Total Logistics for 'thorough assessment'

12 August 2010

Nestlé decided to take the opportunity to review its UK warehousing and distribution strategy, turning to Total Logistics to undertake a thorough, independent assessment of its current and future supply chain needs

In the UK, Nestlé has traditionally operated from three separate distribution sites; Bardon in Leicestershire; Scunthorpe in Lincolnshire and York in North Yorkshire.

Owing to leasing agreements at two of the sites ending, Nestlé decided to take the opportunity to review its warehousing and distribution strategy in the UK, turning to Total Logistics to undertake a thorough, independent assessment of its current and future supply chain needs.

Ian Hill, director of Logistics at Nestlé UK, explains the background to the project: "For many reasons we’d reached a point where we were faced with various options on our three-site strategy. The time was right to bring in a fresh pair of eyes to review our distribution network.

"With our complex mix of dry and wet goods, including water, coffee, confectionery and mix of perishable goods, we wanted to explore what options were there for us – and the Total Logistics' team was the obvious choice given our longstanding relationship with the consultancy."

The main task facing the Nestlé team and Total Logistics' consultants was to develop a meaningful model by which to really understand the pros and cons of every option that was available. While the York, Bardon and Scunthorpe sites handled foodstuffs including water, confectionery, cereals and coffee, the latter also coped with the huge seasonal demands for confectionery products during periods such as Easter and Christmas.

To add to the complex picture, Scunthorpe also used different technologies to service the international export market, dispatching product to Europe and further afield via deep-sea routes.

Peter Roan, partner at Total Logistics, said: "This project was complex from a supply chain modelling perspective, as it included an analysis of in-bound and outbound flows, transport costs, road links and inventory issues but also risk and service factors created by any new network proposed.

"Time was also a big factor here, given the fact we needed to make recommendations and support the implementation to ensure the client was ready and able to satisfy the crucial peak demand period of Christmas. In short we had a window of just six weeks to completely review and make recommendations on Nestlé's UK distribution network strategy."

In all, 16 different scenarios were developed based on the existing facilities and other potential locations in the UK. After an intense period of analysis, it was decided a twin-site solution provided the greatest cost saving to Nestlé, while enabling it to improve flexibility and delivery performance to supermarkets and other key retailers in the UK and further afield.

Although its delivery performance was already at 99.4%, Nestlé was confident concentration to two locations would allow the already high customer service levels to be improved.

Owing to its central location and existing potential for development, it was decided the Bardon site was the obvious choice to centralise supply chain operations. This decision has, however, meant the closure of the Scunthorpe site, with a major investment programme in place at Bardon, which will increase its pallet capacity from 50,000-110,000.

Considerable investment has now gone into the Bardon site to enable it to handle the array of Nestlé food and drink products - including Kit-Kats, Carnation, Buxton and Nescafé. In addition to this focus, the area of risk management has been key to the team's thinking as the site is updated and fully commissioned.

Peter Roan said: "While our recommendation to consolidate much of Nestlé's food and drink distribution under one roof has reduced the overall cost of distribution, the move has enabled the company to combine its business stream and product supply chains to create far greater flexibility.

"Nestlé now has a much more robust logistics operation that will enable it to meet the growing need to deliver more frequent, lower volume drops to retailers. As well as supporting the Nestlé team through this crucial period, we were also able to work with them on the risk management issues raised by a twin site strategy, holding a risk assessment workshop."

The new £7m facility, said to be the largest of its kind in the UK, was commissioned in 2009, creating more than 60 new jobs.

Print this page | E-mail this page


Article image Friullinox joins forces with cold service distribution

Friulinox, the Italian manufacturer of high quality refrigerated cabinets for the food service industry has announced an exclusive distribution agreement with refrigeration specialist, Cold Service Distribution. Full Story...

Article image Brammer extends expertise online with 2nd 'quick tips' video

Brammer, the distributor of industrial maintenance, repair and overhaul (MRO) products and services, has launched the second in a series of advice-led videos to share its expertise and engage with customers onlineFull Story...

Brammer: Counterfeit spares problem very real in UK

Dairy Crest takes to road with new Vector 1550

Distributors mark 85 years alongside Siemens


Article image Anheuser-Busch InBev’s distribution strategy model

Over the past 10 years Anheuser-Busch InBev (A-B InBev) has grown its global distribution network using a strategy which goes against the grain for traditional brewery specifications. In place of cost and time intensive permanent structures, it has adopted a design-driven approach in partnership with Herchenbach, a manufacturer of temporary buildings and semi-permanent warehouses. Full Story...

Article image What role does refrigeration play in the supply chain?

Controlling the temperature of food across the whole supply chain is vital to extend shelf life. But how much can be gained by food manufacturers through careful monitoring at all process stages?Full Story...

Getting the best out of PLCs

Gently does it

Time to take steps to reduce plastic waste