Salvesen plays the food logistics market

Supply Chain Management (SCM) has changed the division of labour among man ufacturi ng, commerce and the service industry like no other management concept. Companies that cooperate in the context of such concepts are usually rewarded by major reductions in costs and improvements in their corn petitive ne ss.
The basic requirement for close partnership is mutual trust, the prerequisite for opening up one’s own company to a partner, as well as a willingness to invest in modern information and communication technologies. The logistics providers also have to invest in infrastructure in some cases. Christian Salvesen plc, based in New Duston (Northants. England). is a good example. Salvesen is one of the largest food logistics service providers in Great Britain.
"Some years ago. Christian Salvesen was among the first UK logistics companies to operate regional distribution centres for supermarkets,>> says Paul Pegg. director of marketing and strategic development for Christian Salvesen's food and consumer division. "Today, supermarkets have their own expertise in this area and niargins are being squeeze d."

Important pieces of the puzzle

"We have to offer so much more if we are to stay in the game.” Pegg continued. Providing integrated logistics — meeting the needs of the
supply chain > — is part of holding on to that extra margin of advantage. Building strategic alliances and continuously re-investing in a Europewide network of shared-user depots is an equally important piece of puzzle for Salvesen. Joining forces with major European players like Danone and Galbani generates operational efficiencies and helps to reduce costs and transit times.
"Many Salvescn sites both in the UK and in continental Europe have state-ofthe-art temperature control equipment. The company's GBP 2.4 million (EUR 3.7 million) shared-used chilled facility at Evesham in the English Midlands. officially opened earlier this year, is a good example. This facility. at the centre of the UK's motorway network, enables overnight transit, checking and distribution of fresh
produce trom growers on the south coast to supermarkets in Scotland in a fullycontrolled environment,>> Pegg explained.
’ Pcgg believes. The range of produce stored there extends from imported vegetables to expensive exotic seafood.
Vehicles are another vital element. Salvesen invests heavily in its temperaturecontrolled fleet, often introducing internally generated technical innovations based on feedback from customers and line managers. "We have customised our equipment to a v cry high level.>’ says
Pegg. "but it gives us the capability to handle any customer’s business efficiently and flexibly." Some vehicles have a double-deck layout to increase load carrying capability and to minimise the number of vehicles operating on the same route.
Information technology systems are the essential sinews that efficiently coordinate the work of the other elements. Electronic links have been developed to allow communication between Salvesen’s own SHARP track-and-trace IT suite, its state-of-the-art depot information network ("Ultima") and customers’ in-house stock control and ordering systems. "Salvesen's recently launched IT product. SHARPnet. gives customers access to a securitycleared internet link to order shipments. reserve space on vehicles, monitor the progress of their consignments and to pinpoint the geographic location of loads through GPS in realtime.
Salvesen’s STOCKnet system fulfils a similar role in the interrogation of distribution centre systems for inventory information,>> Pegg explained. Over the past two years. Christian Salvesen has enhanced its support infrastructure with web-based packages for its state-of-the-art syst ems that were developed in-house.
Salvesen’s SHARPnet technology for example enables customers to track and trace deliveries and obtain instant confirmation that consignments have arrived, or are about to arrive, safely and on tinie via secure internet links.
The company, which has invested heavily in advanced integrated IT systems to improve customer service, reliabilitv. efficiency and environmental friendliness, has won the coveted < award for 2001, sponsored by the Motor Transport Magazine. This follows its recent success in the International Freighting Weekly magazine awards, where it came first in the Technology section.

More efficient, more flexible and faster

Investment in depots and vehicles, allied to efficient plan-
ning and control systems, results in goods spending less time in the distribution pipeline. The supply chain is becoming more flexible and quicker; guaranteeing improved availability of all goods and increasing the time perishables are available for display on the shelf.
"Continuous restocking is now a fundamental principle behind the replenishment of most grocery products.>> says Paul Pegg. "Most retailers want a number of top-up deliveries, sometimes daily from suppliers to ensure that the entire range of products is available in store for the consumer all day.>>
Asked about the future of the UK food logistics industrv, Paul Pegg sees food distribution chains becoming less regional, even less national, and more European focused, with fewer. larger suppliers. The de
mand on logistics suppliers for increased flexibility and extra services while further reducing costs are the key engines of these developments.
Retailing itself will continue to evolve rapidly, with technological developments like c-shopping, as well as structural changes and geographical expansion. Demand for easy, instant and secure access to information about consignments, stock reports and performance will grow rapidly as the e-conomy develops and communication costs fall.
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