From kitchen to counter: a supply chain transformation
In only a 6 week go-live period, Gist transformed the EAT supply chain, consolidating the ambient, chilled and frozen supply chains in a single logistics operation that delivers service levels of over 99% and reduces fuel and mileage by 15%, and increasing effective carbon footprint by 25%.
EAT is a family company dedicated to quality food. Since opening its first shop in 1996, EAT has expanded to more than 100 shops across London. EAT's food is made each day in its Wembley-based kitchen. The products have a one day shelf life for maximum freshness.
In July 2009, Gist began working with EAT to transform the supply chain into an integrated, efficient logistics operation, delivering the change within six weeks. By visiting all 100 stores, the operational team of Gist and EAT employees developed an understanding of each step of the supply chain, right down to individual store level and created optimal solutions for both stores and delivery drivers.
Prior to Gist's appointment, EAT supply chain was operated separately:
- by one supplier for chilled (eg sandwiches);
- by wholesalers for ambient (eg drinks);
- by another supplier for frozen (eg pastries).
This disjointed approach to the supply chain resulted in issues such as:
- inconsistent paperwork controls;
- poor product condition on delivery;
- poor milk accuracy into stores (delivered quantities didn't reflect stores' orders);
- drinks deliveries by wholesalers throughout the day, disrupting staff and customers;
- low ambient delivery frequency, leading to high stock levels and backroom constraints;
- the use of multiple supply chain providers meant multiple vehicles in stores across different locations throughout the day, resulting in increased fuel costs, increased parking and congestion charges and an increased carbon footprint.
After - transforming the supply chain
Key changes were quickly put into place:
- Consolidation of frozen, chilled and ambient supply chains (transport and warehouse) -service levels now consistently exceed 99.8%
- Integrating all supply chains hasreduced overall mileage and fuel usage(and carbon footprint)by 15%
- Increased frequency of deliveries - this has reduced storage requirements in store by20% and improved product availability
- Consistent process for drivers and stores -store complaints have now dropped to one in 2,000 from one in 200 deliveries
- Equipment fit for purpose - increasing the effective footprint by 25% through reduced mileage, emissions and fuel consumption
- Optimising vehicle routes -reducing routes by 25% delivering savings in time, fuel and food miles