Waitrose Case Study
Introduction
As the fastest growing supermarket chain in the past three years with an 8.7% growth rate between 2011 and 2012 & gross sales of £2.8 billion (JLP Interim Report 2012) Waitrose’s current strategy for rapid growth and store expansion has meant that the distribution network will require re-aligning to future capacities. Enhanced Logistical capabilities and efficiencies are required to manage the increased volume of stores across the UK network.
Evaluation of Current Distribution Network
Waitrose’s core operations are situated at four RDC’s located in Bracknell, Aylesford, Brinklow and Bardon, with a fifth in Leyland due to open in mid 2013 (figure 1), “47% of the distribution is through 3rd party DC’s” (Jon, 2012). Waitrose also have two consolidation centres utilised for secondary distribution and a dark store in Acton used for home delivery.
Bracknell
As the core DC, Bracknell has seen five expansions, leaving a layout of multiple warehouses, with differing capabilities. At 600,000sq ft and an average volume per week of 1.94 million, it’s Waitrose’s largest DC. This is inefficient due to the extra handling of goods required, and from a labour perspective costs are higher as it is not consolidated.
Brinklow
Brinklow prioritises fresh produce with an average weekly volume of 1.39 million. Recently an acquisition of a DC in Milton Keynes expanded Brinklow’s capacity. “This means that our supply chain is well placed to cope with rapid expansion over the next few years” (David Jones, 2012). Owned by Celestia, it holds ambient and homeware goods on behalf of Brinklow whilst the original warehouse capacitates all other goods.
Aylesford
Located 20 miles from M25, Aylesford accounts for all seasonal stock and specialises in seasonal trending SKU’s. This site is not consolidated under one roof, leading to inefficiencies related to staff and product movement. Furthermore, structural issues are apparent as it is 45 years old.
Bardon
As the fastest growing supermarket chain in the past three years with an 8.7% growth rate between 2011 and 2012 & gross sales of £2.8 billion (JLP Interim Report 2012) Waitrose’s current strategy for rapid growth and store expansion has meant that the distribution network will require re-aligning to future capacities. Enhanced Logistical capabilities and efficiencies are required to manage the increased volume of stores across the UK network.
Evaluation of Current Distribution Network
Waitrose’s core operations are situated at four RDC’s located in Bracknell, Aylesford, Brinklow and Bardon, with a fifth in Leyland due to open in mid 2013 (figure 1), “47% of the distribution is through 3rd party DC’s” (Jon, 2012). Waitrose also have two consolidation centres utilised for secondary distribution and a dark store in Acton used for home delivery.
Bracknell
As the core DC, Bracknell has seen five expansions, leaving a layout of multiple warehouses, with differing capabilities. At 600,000sq ft and an average volume per week of 1.94 million, it’s Waitrose’s largest DC. This is inefficient due to the extra handling of goods required, and from a labour perspective costs are higher as it is not consolidated.
Brinklow
Brinklow prioritises fresh produce with an average weekly volume of 1.39 million. Recently an acquisition of a DC in Milton Keynes expanded Brinklow’s capacity. “This means that our supply chain is well placed to cope with rapid expansion over the next few years” (David Jones, 2012). Owned by Celestia, it holds ambient and homeware goods on behalf of Brinklow whilst the original warehouse capacitates all other goods.
Aylesford
Located 20 miles from M25, Aylesford accounts for all seasonal stock and specialises in seasonal trending SKU’s. This site is not consolidated under one roof, leading to inefficiencies related to staff and product movement. Furthermore, structural issues are apparent as it is 45 years old.
Bardon