Culina Logistics has started a next day ambient delivery service into Tesco’s national distribution centre network.
The Day 1 for Day 2 service operates via Culina’s multi-user site in Wolverhampton and will manage deliveries for customers on a six-day, Monday to Saturday cycle.
Gary Bentham, Tesco primary ambient manager, said: “Culina Logistics embraced our desire to reduce ambient lead times and they have worked collaboratively with us to achieve a cost-neutral position for our suppliers for deliveries into the Tesco ambient network.
“The implementation went extremely well and has been operating successfully.”
Historically, the ambient grocery market has operated on Day 1 for Day 3 delivery cycle from Monday to Friday, but a number of major multiples have been driving demand for a Day 1 for Day 2 deliveries for ambient products to reduce working capital tied up in their supply chains and to improve on-shelf availability.
The infrastructure and processes in place to support next day deliveries from Monday to Saturday mean the option to expand to full seven-day service is available if required by Tesco and its suppliers.
The operation will also provide Culina Logistics customers whose stock is not held at Wolverhampton with cross-docking facilities into the company’s ambient network so that they achieve the same levels of service.
Culina is working with other major multiples and is looking to announce an implementation with a second retailer within the next few months.
“The lead time requirements of the ambient and chilled grocery markets are converging but the profile and sensitivities of the products together with the processes within many supplier and retailer distribution networks mean that the respective supply chains will remain largely independent,” says Steve Winwood, group commercial director at Culina.