Snack manufacturer Tayto expects to take up to 250 tonnes of CO2 emissions out of its supply chain by July 2015, thanks to a pioneering ‘virtual warehouse’ system developed jointly by Bibby Distribution and Tayto’s Supply Chain & Commercial Teams.
New figures show the system has already saved 160 tonnes of CO2 emissions since the system was implemented in July 2014, with a further 90 tonnes expected to be taken out by the first anniversary of the system’s implementation. This figure will potentially increase as Bibby Distribution plans to introduce two new 15.6m longer semi-trailers (LSTs) onto the contract in May, meaning fewer runs will be required for deliveries. These new trailers will also be used as mobile advertising for Real Crisps and Mr Porky, two of Tayto’s premium brands.
Furthermore, in addition to generating crucial environmental savings, this joint Bibby Distribution and Tayto virtual warehouse approach has improved on-shelf availability for retailers and provided a platform on which to establish a home delivery market for the largest British-owned snack manufacturer in the UK.
Nigel Smith, Tayto’s Group Supply Chain Director, says: “The virtual warehouse system has been extremely beneficial for our business. It has slashed our annual food miles by around 40,000 a year, plus there are now 3,000 fewer pallet touches which means the risk of damage to our stock is far, far lower.”
The partnership team developed the virtual warehouse system to provide Tayto with the benefits of consolidation, but without the outlay required for a physical warehouse or the logistical costs of transporting goods from two production lines to an additional facility.
A software system provides a single ordering point for customers which then builds multi-sku loads from stock in Tayto’s two major warehouses, and calculates the most cost-effective way of consolidating the load based on other orders in the system, transfer costs and warehousing expenses.
This then provides the cheapest possible route to market, while also making it easier for customers to order, as previously they would have had to place two separate orders depending on whether they were ordering snacks, stored in Corby, or crisps, stored in Scunthorpe.
The virtual warehouse system is also scalable, with Tayto now evaluating the prospect of using it to provide home delivery direct to consumers.
Tayto Impulse and B2B Sales Director, Scott Cooper says: “The virtual warehouse solution has been a notable success – one which has satisfied our customers’ ordering expectations and greatly improved their overall experience.”
Notes to editors:
As one of the top ten logistics providers in the UK, Bibby Distribution exists to enable other companies to drive value from their supply chain activities. The company specialises in providing contract logistics, warehousing, distribution, systems integration and added value services to a wide range of customers.
Bibby Distribution operates from 90 locations across the UK, employs 2,500 people and manages 2 million ft² of warehousing space.
The majority of Bibby Distribution’s business is based on long-term partnerships. Its diverse capability also means it can share best practice across the various industry sectors it operates in, from Automotive to FMCG.
The company is part of the £1.4bn-turnover Liverpool-based Bibby Line Group, a 200 year old family owned business-to-business services specialist. It is involved in ship-owning and operation, shallow water accommodation, offshore oil and gas services, contract logistics, financial services, memorial parks, employment law, health & safety advisory services, specialist plant & equipment hire and retail.
Bibby Distribution, Head office, 105 Duke Street, Liverpool, L1 5JQ.
Tayto Group Ltd is the biggest British-owned crisp and snack manufacturer, producing five million bags a day across its five sites. The company remains family-owned and has a portfolio of some of the UK’s most iconic snack brands, including Golden Wonder, Real Crisps, Mr Porky, Ringos and Tayto.
Further press information:
James Boley and James Keeler at Garnett Keeler PR on 020 8647 4467.
For Tayto, Gwynneth Cockcroft, DCP strategic communication, 028 9037 0137, 07785 793671 – [email protected]