Logistics savings boost profits at Sainsbury’s

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Logistics savings helped Sainsbury’s push up underlying operating profit by 8.2 per cent to £370 million in the first half.

The retailer said cost savings in logistics continued to be achieved through optimising the use of trailer space, removing unnecessary journeys and ensuring drivers’ days were planned as efficiently as possible.

It  has also been investing in supply chain technology, and said it expected its new real-time ordering and forecasting system would significantly reduce waste and will cut CO2 emissions by over 1,400 tonnes a year.

“Additionally we have reduced packaging by eight million kilos in the last year.”

Total sales were up seven per cent to £11.9 billion. Chief executive Justin King said: We are pleased with the growth of our channels and services as we continue to extend our offer to more customers. We now have over 340 convenience stores; online sales are growing by over 25 per cent and the bank has delivered strong profit growth.”


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