Pall-Ex delivers supply chain efficiency for Asda

Pall-Ex, the leading palletised freight distribution network, has unveiled figures that show it helped suppliers of supermarket giant ASDA save thousands of pounds, as well as miles, in 2011.

The new figures show that the nominated carrier service that Pall-Ex operates for ASDA saved suppliers more than £100,000 last year and reduced the distance travelled by 340,000 miles compared to previous methods.

As part of the deal, which has been operating for the last five years, Pall-Ex is responsible for collecting domestic palletised freight from selected ambient grocery and general merchandise vendors. This is then consolidated at the network’s central hub before being delivered to ASDA’s distribution centres in Lutterworth and Doncaster.

Commenting on the figures, Hilary Devey, founder and CEO of Pall-Ex, said:

“We’re obviously delighted that our work with ASDA has resulted in such notable cost and mileage savings for their suppliers in 2011. Our approach is to consolidate small consignments of freight and avoid journeys with empty trailers, which ensures supply chain efficiency, reduces costs and lessens environmental impact when compared to the retailer’s previous methods.”

Pall-Ex’s strategy has also helped to reduce congestion at ASDA distribution centres and having one carrier means a single point of contact to trace freight, resulting in additional cost savings and administration reduction.

Andrew Robinson, ASDA’s primary development manager for central supply, added:

“Pall-Ex helps us to get products to our stores quickly and efficiently, which is key to maintaining availability and maximising sales. Shorter lead times make replenishment more reactive and reduces out of stocks.

“Not only has the partnership with Pall-Ex had a significant impact on our end-to-end supply chain costs, but it has also helped to lessen the environmental impact of our operations by reducing the number of vehicles on the road.”

The contract with ASDA is part of Pall-Ex’s Retail Plus+ offering, which provides bespoke services and flexibility to some of the biggest names in retail. Benefits include timed deliveries into retail outlets and deliveries outside of trading hours, the de-palletisation of goods and the removal of packaging.

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