bibby morrisons

Bibby Distribution is to operate a third primary consolidation centre (PCC) for Morrisons, with a further two planned by mid-2015 as part of the supermarket’s strategy to boost the efficiency of its national network.

The new 10,000-pallet Kent hub will consolidate regular deliveries from suppliers in the South-East, where a Bibby-designed software system will create multi-vendor loads of mixed inventory lines to be taken to RDCs nationwide.

Bibby said this approach would enable Morrisions’ store network to benefit from ‘little and often’ deliveries to match customer buying habits.

Kevin Yapp, general manager for primary distribution at Morrisons, said: “The PCC model that has been developed for us by Bibby Distribution has already delivered substantial benefits at the first two PCCs, which have been in operation since April 2013 [in Corby and Yeadon].

The time is now right to expand out to a new region. Once all five planned PCCs are open by mid-2015, we expect to have taken out £20m of inventory whilst improving on-shelf availability.”

Ian Firth, Bibby Distribution divisional development director, said: “We’ve created Morrisons’ PCC model from scratch, helping support the deployment of their other programmes. We’re delighted to have developed the physical solution that makes the most of their existing and developing technology, and to have given them the security and peace of mind to benefit from future delivery network investment.”

InMotion

The partnership also allows Morrisons to drive its InMotion programme, which increases backhaul revenue for the retailer. The use of PCCs means Morrisons can use its own vehicles returning to DCs to collect loads from suppliers at backhaul rates rather than factory-gate prices, driving down costs while boosting fleet utilisation. That in turn cuts food miles and carbon emissions per tonne moved. Bibby Distribution then supports Morrisons by providing additional trucks as and when required.

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