Wednesday 28th Sep 2016 - Logistics Manager

Tayto cuts food miles with virtual warehouse

Snack manufacturer Tayto has implemented a virtual warehousing system supplied by Bibby.

A software system provides a single ordering point for customers, which then builds multi-sku loads from stock in Tayto’s two major warehouses, and calculates the most cost-effective way of consolidating the load based on other orders in the system, transfer costs and warehousing expenses.

This then provides the cheapest route to market, while also making it easier for customers to order, as previously they would have had to place two separate orders depending on whether they were ordering snacks, stored in Corby, or crisps, stored in Scunthorpe.

Nigel Smith, Tayto’s group supply chain director, said: “The virtual warehouse system has been extremely beneficial for our business. It has slashed our annual food miles by around 40,000 a year, plus there are now 3,000 fewer pallet touches which means the risk of damage to our stock is far, far lower.”

Bibby reckons that the system has already saved 160 tonnes of CO2 emissions since it was implemented in July 2014, with a further 90 tonnes expected to be taken out July 2015. Bibby will also introduce two 15.6m longer semi-trailers onto the contract later this month.

According to Bibby, the system is scalable, with Tayto now evaluating the prospect of using it to provide home delivery direct to consumers.

Tayto impulse and B2B sales director, Scott Cooper said: “The virtual warehouse solution has been a notable success – one which has satisfied our customers’ ordering expectations and greatly improved their overall experience.”