Greggs optimises to save cash and carbon

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Bakers Greggs is rolling out new routing and scheduling optimisation software across its UK distribution estate, having already benefited from its deployment at one bakery.

The retailer has already saved £200,000 in annual transport savings and removed the need for eight delivery vehicles at its Manchester bakery as part of an initial implementation.

It will now use the software from specialist provider Paragon to manage, track and optimise its fleet of 250 vehicles delivering sandwiches, savoury products and sweets from its 12 central bakeries to more than 1,100 UK stores via fixed routes.

"For us, distribution is a complex process," said Paul Duggan, Greggs national logistics project manager. "We deliver everything that the shops sell, so our delivery patterns include frozen, chilled and ambient produce."

He said the company previously carried out this distribution overnight, when products "emerged from the ovens at three am".

"As a result, such a tight time window demanded a very large fleet of trucks," he added.

The introduction of Paragon Multi Depot software, which facilitates central planning, has allowed Greggs to reassess its delivery patterns and develop a more cost effective distribution strategy.

Duggan explained: "We have used Paragon to double-shift the vehicles. During test runs of the project in Manchester we were able to distribute fresh produce overnight, while chilled and frozen produce were delivered throughout the day."

In addition to the £200,000 transport savings and the corresponding reductions in Greggs' carbon footprint gained from removing eight vehicles through the optimisation of its existing Manchester delivery routes, the retailer has been able to improve its route planning strategically as well.

Duggan said: "When we want to look at our existing routes and see if they are efficient, or where savings can be made, we run them through Paragon. The software can also be used to determine the additional transport costs related to new store locations. Using Paragon has also saved money by removing inefficient routes."

He added that the software is also capable of taking the different temperature zone requirements of goods delivered into account, as well as assessing the efficiency of routes drivers report as problematic. "It has improved our delivery reliability," Duggan said.

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