Supply chain improvements have helps Sainsbury’s boost profits despite the slowdown in the economy. The supermarket group has reported underlying pre-tax profit up 13.3 per cent to £272m on sales up 7.6 per cent to £10.8bn.
It said the recovery plan “Making Sainsbury’s Great Again” and ongoing operational improvements were now embedded within the various functions of the business including stores, the distribution network, property development and central functions.
“The consolidation of store and depot operations under Roger Burnley is helping drive further improvements. In stores, night-shift operations have been improved and bi-optic scanners and self-checkouts are being rolled out to help drive efficiency.
“Stock loss has also been reduced alongside improvements in product availability,” the group said.
“Within the distribution network there has been a significant improvement in depot productivity and store deliveries. New processes, a new transport management system and the removal of automated equipment are all helping to improve the overall efficiency of the supply chain network while the benefits of investments made in the previous financial year, such as the consolidation of the company’s convenience distribution operation and a new 530,000 sq ft depot at Northampton which opened in November 2007, are now coming through in lower costs.”
Cost savings had exceeded the original plan and the group expects to continue its ongoing drive to reduce costs.