Makro, the UK arm of German retail giant Metro, has chosen Advanced Supply Chain for a £24m three-year contract which extends an existing relationship to include all full pallet ambient product.
Advanced will collect more than 1,000 pallets a day from some 350 suppliers, and delivering them to the Advanced Bradford-based distribution hub for allocation and onward delivery to Makro stores around the country.
Product will either be pallet picked, case picked onto consolidated pallets, or single item picked for online orders, allocated to store, and delivered either that night or at the latest, the following day.
Dave Jones, head of supply chain at Makro, said: “I am delighted to have secured the services of Advanced Supply Chain for the full distribution profile because, as an innovative and pro active 3PL partner, they have continually sought and identified areas of service and cost improvement. Following commencement of operations at the Advanced Makro DC in Bradford, we have seen improved stock availability, reduced stock holding and a consequent improvement in sales.”
Makro has used Advanced for the past eight years, initially for pre-retailing and distributing the fashion ranges, then footwear, then all part pallet product and finally as a result of this agreement, all full pallet ambient product.
The new three year contract will result in 10 per cent– 15 per cent growth per annum for Advanced, plus the creation of a further 50 – 60 permanent jobs over the contract period.
Steve Mawby, UK logistics manager at Makro and Mike Danby, CEO at Advanced Supply Chain.
Advanced chief Mike Danby said a major part of the success of the Makro operation was the huge investment in bespoke IT systems, which have driven the consolidation, control, and audit trail of all the delivery streams.
Advanced recently introduced a new fleet of liveried double deck trailers, designed to accommodate delivery of full pallets, part pallets and hanging garments, to maximise utilisation of the trailer cube, and to facilitate both rear and either side unloading.
The impact on loading and goods receiving time, together with the significant reduction in trailer movements, has resulted in improved turnaround time, reduced cost, and contributed to a reduction in CO2 emissions.