Plan to drive inefficiency from inbound grocery chain

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GS1, the data standards organisation, has launched a Perfect Order initiative to tackle hidden operating costs, delays and process inefficiencies in the inbound grocery supply chain, while addressing the need to create a seamless shopping experience.

The initial stage of the Perfect Order programme, due to begin this month, will include the development and adoption of a set of industry agreed standards for inbound logistics, ensuring that the retailers’ service requirements are met in full.

This part of the programme will involve a joint industry workgroup, made up of both grocery retailers and suppliers including Bakkovar, Boots, Coca-Cola Enterprises, Mondelez, Morrison’s, Nestle, Procter & Gamble, Tesco, Turners of Soham and Unilever.

It anticipates a range of benefits including better utilisation of vehicles, a less customised and more direct goods receiving process for suppliers, and ultimately better product availability for shoppers.

Simon Mardle, logistics and change management at Tesco, said: “The GS1 UK Perfect Order programme helps support Tesco’s passion for putting the customer at the heart of everything we do. To help achieve this, it’s key we work with our suppliers in new and different ways and help to make ways of working simpler and easier for all of us. This work is a great example of where we have to go even further and work collaboratively across our entire industry to achieve better performance for all. It will help us to fundamentally change the way we engage with our suppliers and deliver a significant cultural shift in our business. This couldn’t be a better time for us to implement an industry standard.”

Over the next three years, the Perfect Order programme will evolve into a full set of industry agreed harmonised ways of working which, with the commitment of all parties involved, make for a simpler inbound logistics process and also create the opportunity to generate significant savings.

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