Sunday 25th Sep 2016 - Logistics Manager

Tesco picks Paragon for optimisation programme

Tesco is working with routeing and scheduling specialist Paragon to improve the efficiency of its delivery fleet which accounts for almost a sixth of its total carbon footprint.
Over the next five years the company is working to reduce the CO2 created per case of goods delivered by 50 per cent, demonstrating its commitment to sustainability. As Alex Laffey, transport operations director for Tesco says: “We believe in sustainable growth – it is responsible, it is what our customers want and it makes good business sense.”
As part of this objective, Tesco and Paragon joined forces on a strategic project using Paragon’s routing, scheduling and network optimisation software. By reviewing the allocation of stores to depots, balancing warehouse capacities and daily throughput limits, then optimising the detailed transport schedules, Paragon and Tesco have worked together to reduce the overall food miles and associated carbon emissions.
Paragon managing director, William Salter, said: “Having modelled the distribution network and identified the process, Tesco can now repeat the exercise on an ongoing basis quickly and easily, as it seeks to achieve ambitious carbon reduction targets.”
The Tesco/Paragon project has enabled Tesco to make some significant savings, for example, as a result of improved store allocation, increased backhauling and improved fleet utilisation. Overall the mileage savings alone equate to over 150,000 miles saved each week which when expressed in terms of CO2 equates to thousands of tonnes saved each year.
“We have used Paragon for more than a decade for routing and scheduling optimisation throughout our business,” said Alex Laffey, “and the longevity of this relationship is a real testament to Paragon as a reliable solution and the professionalism of the people behind it.
“Using Paragon for the strategic analysis of our transport operations is playing an important role in Tesco’s Sustainable Distribution strategy – a key initiative for us as an organisation.”