Starbucks has taken on Gist to run its UK and Ireland logistics operation, cutting each store’s 16 weekly deliveries down to just seven consolidated ambient and chilled loads.
Gist will begin operating the contract in August from its Hemel Hempstead hub, with five other regional facilities handling onward distribution to Starbucks’ 720 stores, and some 1,000 concessions stands.
The coffee retailer used to take deliveries at stores throughout the day from CEVA, Dairy Crest and Food Partners. Gist will now consolidate products into one night time delivery per store, when its staff will open up the stores to deposit goods in fridges and freezers.
Starbucks was keen to cut out deliveries that interrupted store operations, in order to enhance customer service. This shift to a faster supply chain is also expected to make cost savings in the region of 20 – 25 per cent, according to Martin Gwynn, chief executive of Gist.
The logistics firm plans to hire some 200 extra staff, includeing 120 warehouse operatives, and 70 drivers. Consultations are in progress regarding the possible TUPE transfer of staff who previously worked on the Starbucks deliveries to the Gist operation.
Gist has taken on 70 new vehicles to service the contract. This includes a range of 10 and 18 tonne rigid body trucks as well as some articulated vehicles.
The firm recorded 18 per cent growth in the 2010 calendar year, and has reported 12 per cent growth since January.