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Tim Edwards. Summary Development of the Co-operative Group Recent history Development of the distribution network Requirement for Yard management Pilot.

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Presentation on theme: "Tim Edwards. Summary Development of the Co-operative Group Recent history Development of the distribution network Requirement for Yard management Pilot."— Presentation transcript:

1 Tim Edwards

2 Summary Development of the Co-operative Group Recent history Development of the distribution network Requirement for Yard management Pilot site Implementation and beyond

3 Cooperative Group History 1844 -- Rochdale Pioneers Society established based on their eight 'Rochdale rules', including distributing a share of profits to members 1863 -- Co-operative Wholesale Society (CWS) established 1896 – Co-operative Society acquires its first farm 1900 -- A total of 1,439 co-operative societies now registered 1942 -- First self-service shop opened by the London Coop 1973 -- Scottish CWS merged with CWS 1992 -- The co-operative stocks Fairtrade products in every food store 2000 -- CWS and CRS merge, creating the world's largest consumer co-operative 2007 – The Co-operative Group and United Co-operatives merge 2009 -- The Co-operative Group acquires Somerfield,

4 Co-operative Group today UK’s largest mutually owned organisation t/o £13.7 bn (2010) Profit £414 m Employees c. 110000 Outlets c. 5200 Wide range of businesses – “cradle to grave” Food Farms Finance (Banks, Insurance, Investments) Funeralcare Travel Pharmacy Motor Group Legal services

5 The Co-operative Food now UK’s largest convenience store operator UK’s 5 th largest food retailer Full range of food and non-food products Award winning range of own label products Numerous awards for corporate social responsibility and ethical approach 85% of Cooperative Society volume Supplier to Independent Societies Deliveries to 4046 outlets of which 3000 are Co- operative Group stores

6 1 Regional Composite Distribution Centre 17 Ambient only RDC’s 13 Chill only RDC’s 4 Frozen only RDC’s 1 National Distribution Centre 1 Stockless Cross-dock Platform TOTAL 37 Network (inc Somerfield) 2003

7 Project Lidia L ogistics I nfrastructure Development to I mprove A vailability Conclusions of strategic review in 2003/4 Move to composite RDC’s NDC for slow-moving ambient products and bond Move to composite deliveries where practical Use of stockless cross-docking platforms for outlying regions Requirement for 24/7 operation No existing sites suitable for conversion to RDC’s or NDC Review post Somerfield acquisition 2 sites in network usable as composites Further integration with Independent Cooperative Society sites

8 5 Regional Composite Distribution Centres 1 Twinned RDC 4 Ambient only RDC’s 2 Chill only RDC’s 2 Frozen only RDC’s 1 National Distribution Centre 1 Stockless Cross-dock Platform TOTAL 16 Network –Current -2011

9 7 Regional Composite Distribution Centres 1 Twinned RDC 1 National Distribution Centre 1 Ambient only RDC 2 Stockless Cross-dock Platforms TOTAL 12 Newhouse Lea Green Birtle y Castlewood Thurrock Andover Plymouth Avonmouth Coventry Inverness Carrickfergus Huntingdon Network –Post Lidia-2013

10 Network Change 2005-2013 6 new RDC’s built 2 RDC’s redeveloped New NDC built 32 sites closed

11 Project Odyssey – Systems Requirements New network required new systems: Warehouse Management System (WMS) – first implementation 2006 Transport Execution System (TES) – first implementation 2005 Bond Management – implemented 2010 Time Management – first implementation 2010 Labour Management – in pilot Yard Management – in pilot

12 YMS Requirements Greater complexity of new RDC’s: Typically 2-3 x size of old sites Multi-chamber Greater use of cross-docking and trans-shipments Wide range of vehicle/trailer types (c.20/site) Requirement for computerised solution Objectives: Reducing operating costs by minimising shunter moves Improving yard visibility by providing a real time view of all vehicles within the yard Reducing the time currently spent locating and allocating vehicles Reducing potential delivery delays from being unable to locate the correct vehicle type

13 Key Requirements Interface from WMS for outbound loads To define and manage the physical and time based constraints on yard usage Automatically (in real time) allocate the most appropriate vehicle to an outbound load. (Where feasible allocate inbound vehicles) locate returning vehicles to either an allocated dock or bay - interface to TES to create shunter tasks to move loaded vehicles from dock doors to bays or empty vehicles from bays to dock doors as required to support loading. Minimise shunter tasks whilst maintaining a smooth workload for shunters. Shunters to use hand held or truck mount devices.

14 Key Requirements (contd) To track the status of all locations and vehicles within the yard. (e.g. Empty, Loaded, Allocated etc ) To allow for manual vehicle moves or allocations To provide management information in regard to yard, vehicle, shunter utilisation and shunter performance To manage the receipt and dock / bay allocation of transhipment deliveries from other Co-operative Group warehouses To manage inbound supplier deliveries To manage de-kitting and associated docks Although not in scope of the initial project possible future requirements include: To accept an interface from TES for vehicle departures, arrivals, ETA’s, VOR etc. Management of tractor units

15 System Integration Overview

16 Andover CDC – Pilot Site

17 Composite RDC’s 2013 RDCStoresThroughputWarehouseProduct rangeVehiclesOutbound (Cases/wk)(Sq ft)AmbientChillFrozenInboundLoads Thurrock6451,100,000325,000YYN 349 1375 Birtley299580,000280,000YYN 184 725 Lea Green6861,600,000585,000YYY 507 2000 Newhouse6181,450,000505,000YYY 459 1813 Andover4351,135,000478,000YYY 475 1875 Avonmouth4751,500,000435,000YYN 360 1419 Castlewood5301,400,000487,000YYN 444 1750

18 Timeline to Pilot 2007 – RFI issued 2008 – C3 chosen as supplier 2009 - Project held due to Somerfield integration 2010 Project re-activated Pilot implementation approach agreed Andover RDC chosen for pilot 2011 – Pilot implemented

19 Integration Phase 1 Scope feed from WMS identifying loads created and available Options Excel file transfer Web Services Considerations Coop unfamiliarity with Web Services Flexibility for the future Learning opportunity Decision Use of Web Services C3 support during development

20 Integration Phase 1 Challenges Lack of in-house knowledge of Web Services Development to fixed deadlines Effort Technical training sessions Use of both on-site and remote support Benefits Implementation of agreed design Achievement of business case objectives Development of in-house expertise for future integration

21 What next?

22 Integration – Phase 2 1. Interface with TES TES to Yard Smart – Automatic creation of incoming gate events – Updating of vehicle ETA – Event completion when vehicle crosses geo-fence – Automatic update of zone and task on task completion in TES – Vehicle powered and un-powered from TES – Request vehicle position from Yard Smart – Send vehicle XY coordinate to Yard Smart – Automated completion of gate out event Yard Smart to TES – Message sent when task for powered vehicle created

23 Integration – Phase 2 2. Tighter Interface with WMS WMS to Yard Smart – Updated shipping runs when details change – Route cancellation Yard Smart to WMS – Door selected for shipping run – Trailer resolved for shipping run 3. Interface with visual display boards Automated messaging to vehicles awaiting unloading

24 Questions?

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