PROJECT PARTNERS
C OV E R STO RY
We catch up with Jon Parry, Vice President of Asda Logistics Services, to reflect on the last year and find out more about his plans for 2021 and beyond.
Written by Anna McMahon • Produced by Jennifer Davies
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AFTER A YEAR THAT WAS LIKE NO OTHER, JON PARRY, VICE PRESIDENT OF ASDA LOGISTICS SERVICES, IS KEEN TO EXPLORE THE NEW OPPORTUNITIES THAT THE PANDEMIC PRESENTED.
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or Jon, 2020 was incredible on many fronts, but it was not without a wide-ranging number of challenges that he and his team met with enthusiasm. He explains, “When the first lockdown happened, we were extremely thankful to be working in the retail and food industry, helping to feed and serve the nation, but it was also a very challenging time. Our
core purpose within Asda Logistics Services is to serve our customers better than anyone else. The impact of social distancing meant in order to serve our customers better, we really had to open up the capacity of our online channels. Within a few weeks, we managed to double the capacity of our online grocery channel, provide more vans for home delivery, and increase our click-and-collect capacity.
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“Our George.com business also grew, and our role was to fulfil that product for our customers on the doorstep, as well as our click-and-collect customers. The investment and support from the board meant we could provide more opportunities for our customers to buy through that channel. As we needed to put social distancing into our logistics network, we had to adjust our operating models so that colleagues picking, packing and dispatching were doing so in a socially-distanced way. This presented challenges in terms of the number of colleagues we could use and the space in which they needed to operate.”
“AS NEW INNOVATIONS COME INTO THE INDUSTRY THROUGH AUTOMATION, WITH MORE PROVIDERS OFFERING AUTONOMOUS MOBILE ROBOTS (AMRS) AND AUTOMATED GUIDED VEHICLES (AGVS), WE ARE PAVING THE WAY TO AUTOMATE MANY MORE OF OUR PROCESSES”
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Asda AND VANDERLANDE A PARTNERSHIP WHICH DELIVERS EVERY TIME. The Partnership between Asda and VANDERLANDE began back in 2013, during the selection process for the supplier of choice to design, build and maintain Asda’s first automated case picking (ACP) DC solution at NWADC in Warrington. Fast forward to 2016 and the first products moved through the impressive 28,600m2 facility handling more than 840,000 cases per day and processing over 7,800 SKUs; operating over 24 hours a day, 7 days a week, 365 days a year. This year marks the 5th year of partnership since the opening in 2016 and in the last 12 months we have all had to live in challenging circumstances due to the COVID-19 pandemic that has impacted us all. Asda and Vanderlande have worked closely to support their customers in these incredibly challenging times by ensuring that the DC operates efficiently and safely whilst operating at peak levels of demand continuously. Helping Asda to meet the needs of its customers is the objective for the Vanderlande onsite service team. Gary Stubbs, Vanderlande Managing Director Warehouse Solutions UK: “Our partnership with Asda is based on trust by delivering our promises and increasing reliability, thus ensuring we support Asda’s everyday low price business model; which leads to a special relationship. We achieve our targets together, always looking for continuous improvements and celebrating our joint successes. We are proud of NWADC, working endlessly to support delivering outstanding service and availability to stores and customers every day in any environment.”
Want to have more information?
Please watch the video showcasing the Warrington DC at www.vanderlande.com or contact us at info@vanderlande.com for more information
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Asda adopts Toyota’s TRANSFORMATIVE TECHNOLOGY Toyota Material Handling UK has recently entered into a successful working partnership with Asda at its Warrington Ambient Distribution Centre, providing the retail giant with an advanced automated pallet transfer system involving twelve Toyota ‘Autopilot’ Automated Guided Vehicles. The scalable solution offers Asda an agile and flexible means of moving palletised loads between an existing Vanderlande fixed, automated system and the dispatch marshalling area ¬– a non value added task, perfect for mobile automation. In addition to the Autopilot system, Toyota Material Handling has also supplied an extensive fleet of 57 conventional forklift trucks, incorporating gas and electric counterbalance trucks, 13.5m reach trucks and a variety of warehouse vehicles fully equipped with Toyota’s market-leading, in-house I_Site telematics and lithium-ion battery technology. The manual trucks will work alongside, and in harmony with, the Autopilot vehicles, which are equipped with an array of advanced safety features, such as personnel protection and machine detection scanners and 360 degree CCTV cameras. Also, as part of the initial phase of a major transition of Asda’s electric warehouse fleet from lead-acid to advanced lithium-ion battery technology, a further order for 62 Toyota counterbalance, reach and warehouse trucks has recently been supplied to Asda’s cross-dock distribution centre in Erith, Kent. Ian Bennett, National Accounts Manager for Toyota Materials Handling comments: “We are delighted to be working with Asda on an exciting new initiative to bring the latest advances in materials handling technology to their distribution network. Asda is a leader in adopting innovative technology that drives productivity and delivers on environmental objectives. They have used advanced mobile automation to great effect, cutting out repetitive tasks, and have embraced lithium-ion battery technology with all the environmental, cost and operational benefits that it brings.”
For more information on Toyota Materials Handling’s transformative technology go to www.toyota-forklifts.co.uk
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Jon is very proud of that fact that the company worked hard to shield colleagues classed as vulnerable or extremely vulnerable during the height of the pandemic. He says, “There were 25,000 of 145,000 colleagues in the Asda business that were vulnerable. We paid for those colleagues to shield themselves at home. This created some operational challenges because we had fewer colleagues to serve our customers. A couple of thousand of those were in the logistics network, so we went on a rapid campaign to recruit new colleagues to
work for us on a temporary basis. It was amazing how the team managed to recruit and train that number of new colleagues in such a short space of time with a large number of new colleagues recruited through our friends and family initiative. The upside was that we were able to provide people struggling with employment with temporary jobs, such as those in the airline business or hospitality industry. Some of these colleagues are still with us today, having decided to take a career change.” It has certainly been an exciting journey for Asda Logistics Services over the last year, and as life gradually returns to our new normal, Jon says that there has been a definite reshaping of the business. He explains, “Customers
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MOVING YOUR BUSINESS FORWARD TOGETHER Toyota Material Handling and Vanderlande working in collaboration to provide a full warehouse and distribution centre solution. From process automation solutions to manual and automated materials handling equipment. Find out more: www.toyota-forklifts.co.uk www.vanderlande.com
want to continue to shop more online, and we have been able to welcome more customers back to our stores as restrictions ease. We have also invested more in keeping people safe, both our customers and our colleagues on the front line; for example, with enhanced cleaning measures and Perspex screens. There is no doubt that the learnings of the last 12 months will be with us forever.”
“THERE IS NO BETTER PROCESS THAN ONE THAT ENABLES US TO LISTEN TO OUR COLLEAGUES THAT DO THE JOBS ON A DAY-TO-DAY BASIS” Innovation and automation have played a key role in enabling Asda Logistics Services to generate more capacity to serve its customers. Jon talks about three top priorities for the team: “Our strategic vision starts with innovation. There are 15,000 colleagues working within logistics and we try to provide them with a platform where 13
they feel empowered to simplify the way we work through new and innovative ideas. There is no better process than one that enables us to listen to our colleagues that do the jobs on a day-to-day basis. Those colleagues come up with some stunning ideas that allow us to improve a concept, test it, and roll it out across the broader logistics landscape. This helps us to become more compliant, gives us a greater quality of service, and enables us to serve our customers better. It also allows us to operate at a lower cost by unlocking the value in our logistics network and ultimately passing that value on to the customer.” “The second and third priorities are related, and they are automation and technology. We are doing a huge amount here, as our technology strategy has accelerated significantly. As new innovations come into the industry through automation, with more providers offering autonomous mobile robots (AMRs) and automated guided vehicles (AGVs), we are paving the way to automate many more of our processes. If you want to link into your warehouse management system and transport management system, you need the right level of technology to do so.
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“We are working hard on our robotic process automation, where administrative tasks are automated, which allows us to make the process more efficient and create skilled roles in our distribution centres and new opportunities. We are also embarking on a journey to change our entire warehouse management system in our distribution centres and fulfilment centres. Progress in our transport management system will also provide greater visibility, giving us the ability to see every movement and add value by consolidating them. It is all about bringing people and automation together to improve the way that we work.” Asda has nine service centres throughout the UK, which process cardboard and plastics which come back from the stores, as well as fixing and maintaining equipment. Traywash facilities in these locations allow Asda to procure their own trays for movement of product, maintaining and washing them to benefit suppliers. Jon continues, “Alongside our partner, XPO Logistics, which runs our service centres, we plan to automate more process and operation. This year will see the first fullyautomated traywash, where we will be able to wash and recycle
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At the heart of British grocery and consumer supply chains “Asda and Wincanton’s long-term, valued partnership is unlocking collaborative value in new ways and supporting our country’s response to the pandemic… and digitalisation will underpin our future together” Wincanton’s Managing Director for Grocery and Consumer James Hurrell
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s we faced into the challenges posed by the pandemic in 2020, there was a greater appreciation of collaboration – with grocers and their supply chains working together in new ways to feed and support consumers.
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Wincanton enables supply chain collaboration for its customers - delivering cost and environmental benefits through resource sharing and reducing road miles. We also facilitate collaborative supply chain initiatives between grocers and consumer brands – creating new, collaborative ways of working.
Together, Asda and Wincanton deployed shared assets and experienced teams of key workers and the latest digital fulfilment technologies to enable: • Delivering regular, unplanned peak volumes – ensuring food availability in store, as consumer demands flexed to the latest government guidance. • Repurposing distribution centres and creating new supply chains at speed to support pandemic response. • Storing, handling and delivering >12 million COVID tests to >6,500 schools in one week, enabling children to return to education.
Wincanton is enormously proud of our collaborative partnership with Asda and what we have achieved together, supporting our nation’s response to the pandemic.
Where next? More data science, new technology, and agile automation and robotics; digitalisation will underpin the next chapter in the Asda and Wincanton collaboration story.
Find out more at wincanton.co.uk 17
XPO’s Industry Leading Asset Management System Saves Costs and Reduces Waste for Customers Ensuring the right equipment arrives in the hands of the right supplier at the right time within the supermarket reverse supply chain is essential to keeping the flow of goods moving. For that to happen, a robust, data-driven asset management system is critical.
For more than 20 years, XPO’s Equipment Management Service has been providing tailored reverse logistics and asset management solutions to Asda Stores Ltd. Using a web-based equipment management system, XPO manages more than eight million individual assets in its Asda solution, such as product trays, dollies, totes, and shippers, through a network of nine sites. The returned assets are either washed, inspected, and reused for product distribution or sold or recycled. Data about the state of Asda’s physical assets and their availability are shared to assist Asda to maximise their assets and minimise costs by adding, moving, or retiring items as necessary. XPO and Asda’s close strategic partnership has led to significant process improvements and cost reductions for the leading supermarket chain. The alliance has also resulted in far-reaching waste reduction initiatives across Asda’s reverse network, as XPO ensures eco-friendly recycling of cardboard, plastic, and food waste. Driven by XPO’s mission to help customers like Asda extract the most value from their supply chains in a data-driven world, the company continually invests in new technologies. “Right now, we are working to further enhance our existing proprietary digital asset management system by embedding the very latest technology,” says Gavin Williams, managing director, supply chain - UK and Ireland. “Powered by rich insights and data analysis, the system will enhance and speed up the experience for customers like Asda. Programmed algorithms will automatically review supplier orders, ensuring the right quantities of assets get to the right suppliers exactly when they are needed,” says Gavin.
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“And with extensive reporting capacities, the system will track assets at any point in our network, highlighting cost-saving opportunities such as asset sharing between customers.” XPO’s customised technology solutions are just one reason why the company maintains long-standing partnerships with customers; an average customer contract is around 15 years. “With Asda, our partnership extends beyond two decades, and we are currently working with them to automate three out of four of their tray wash lines, at Bristol their Asda Service Centre which equates to approximately 95% of the site volume,” says Gavin. “By incorporating robotics into the front and back-end of the process, this level of tray wash automation will be the first of its kind in the UK and Ireland.”
XPO’s technological solutions, and the size and scale of its reverse network, are unmatched: they offer a complete end-to-end – or in this case, field-to-fork – supply chain solution. Across XPO’s 33 equipment management sites throughout the UK and Ireland, the company handles more than 24 million assets across 700 supplier accounts. Annually, XPO employees are responsible for managing 2.5 million equipment repairs, cleaning 530 million items of supply chain equipment, and recycling 655,000 tons of waste packaging.
the trays without any colleagues being required. If this is successful, we will be able to automate more of our service centres throughout 2022.” With sustainability more important than ever before, it is at the top of Asda’s priority list, stretching across every sector within the business. The company opened its first sustainability store in Middleton in Leeds, introducing loose product, less plastic, and different ways
for customers to shop in a more sustainable way. Jon is hugely in support of the Asda agenda on sustainability. He says, “The biggest thing that we are doing at the moment is in our fleet innovation. By the end of the year, 50 per cent of our big trucks that move our product around our network will be run on liquid natural gas. We will be the number one user in the UK of trucks powered by natural gas. This allows us to have fewer emissions, the fleet can do more 19
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“DRIVING MORE AUTOMATION AND TECHNOLOGY THROUGH OUR LOGISTICS CAPABILITY WILL ULTIMATELY ENABLE US TO BE MORE COMPLIANT, OFFER A BETTER QUALITY OF SERVICE TO OUR CUSTOMERS, AND LOWER COSTS SO WE CAN BE MORE EFFICIENT” Jon Parry, Vice President of Asda Logistics Services
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AMH Material Handling is a leading specialist in designing, installing and maintaining material handling automation and warehouse solutions, both to meet customer demands now and deliver futureproof solutions.
Modern Robotic Solutions
As e-commerce requires faster and more flexible movement of goods on demand, warehouse and manufacturing operators face increasingly complex logistic, production and commercial challenges. Product diversification, same-day delivery, increased volumes and safety impact all industries, from apparel, retail and automotive to electronics, energy and pharmaceutical. AMH Material Handling’s extensive knowledge and understanding of automated and complete end-to-end solutions is a great fit for supply chain customers. AMH has been designing and incorporating the latest innovative technologies using AMR automation and has a proven track record in developing
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solutions in this field, helping to give customers peace of mind when selecting a solution.
challenges of resource and productivity are increasingly discussed amongst the industry.” (Adrian Carter, Sales Director)
“Having recognised the benefits and need for advanced automation and robotic solutions in warehouses, it was a strategic decision to choose Geek+ as our partner. The partnership is now well-established, not only as a key sales distributor but also as a key maintenance and service provider in the UK. Modern robotic solutions using AMRs for certain applications are much more affordable than the traditional dense ASRS using mini load cranes, multi-shuttles and autostores. This makes both the technology and return on investment more accessible than ever. During a consultation stage, our team of professionals will understand the logistical challenges before advising and designing the optimal solution to meet the customer requirements. With both European and global challenges as a result of Brexit and Covid-19, the
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“WE ARE DEVELOPING MORE ELECTRIC VANS FOR OUR ONLINE GROCERY FLEET, WITH MANY BEING ROLLED OUT THIS YEAR ACROSS OUR NETWORK FOR HOME DELIVERIES” miles on less fuel, and the fuel itself is much better for the planet. Not only that, we are developing more electric vans for our online grocery fleet, with many being rolled out this year across our network for home deliveries. With the growth of this online channel, the number of vans has grown since the start of the pandemic. It has nearly doubled in the last 12 months, so you can see how much that business has evolved. This makes it even more important for us to have sustainable ways to serve our customers through the use of electric home delivery vans.” Jon describes the partnerships that Asda Logistics Services enter into as two-way relationships. He talks about Asda Logistics Services going on a journey together with its partners, with 24
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each party’s focus on investing in each other to be more compliant, improve the quality of service, and lower costs. He continues, “We are working with a number of key partners on our AMR programme. About 18 months ago, a group went out to Poland to see AMRs in use at a fulfilment centre. We decided that is what we needed to do here. The efficiency comes from the robot bringing the product to the colleague, as opposed to the colleague having to walk around the distribution centre to find it, so the rate goes up by three or four times. We have worked
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with AMH and Geek + to implement this. Geek + is the provider of the AMR, while AMH integrated with our capability, providing the engineering services. Within nine months, we had a new operation in Yorkshire, with 60 of these robots sorting parcels for our Asda toyou external clients and our George.com business. These robots sort 100,000 parcels a day, which we would never have dreamed of 12 months ago. The efficiency, quality of service and ability to link the colleague to the robot have surpassed all of our expectations.” What’s next for AMRs? Jon and the team plan to look at delivering a George.com returns process, as well as opportunities within the regional distribution centres and food network. Jon adds, “AMH and Geek + have been front and centre with us. It is the first project of its kind in the UK.” Furthermore, AGVs provided by Toyota were introduced to Asda’s Warrington depot, which is the company’s most automated depot. Jon says, “We have done more and more with Toyota over the last 12 to 18 months. We have eight AGVs in Warrington and we will soon have another seven. I have just signed off on a project in Didcot, using AGVs for tramming and marshalling product to the loading lanes, and I can see us partnering with Toyota on more 28
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processes in our logistics network within the next five years.” Tata Consultancy Services have a long history with Asda Logistics Services, working with the company on its robotic process automation programme, specifically Power Up, which focuses on employing robots to perform clerical administrative processes, thus reducing downtime and indirect hours. Jon adds, “We are working on five or six potential implementations throughout the course of this year, enabling us to 30
free up resources to concentrate on more meaningful operations that support our logistics strategy.” The essence of these strong and collaborative relationships revolves around trust. Another company that has earned Jon’s respect is Wincanton. He explains, “We trust Wincanton to manage safe, productive and engaging logistics operations. This has allowed us to spend more time on the more collaborative and strategic agenda; two key priorities that will add real
value, both in the short term, and also provide a solid foundation for an end-to-end sustainable logistics solution for the future. We very much value our longstanding relationship, and we are excited about working together in the future to further develop and enhance our logistics services.” Looking ahead, Jon is very keen to leverage these third-party
relationships to create new, innovative solutions that will help the business to build its capabilities whilst bringing new capabilities to its logistics network. Jon concludes, “Driving more automation and technology through our logistics capability will ultimately enable us to be more compliant, offer a better quality of service to our customers, and lower costs so we can be more efficient.”
For further information on Asda Logistics Services, visit www.linkedin.com/company/asda-logistic/ 31
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