Logistics Trends and Freight Strategy
Changing Trends in Freight Logistics
Recent trends in FMCG supply chain are based on
improving cost efficiency and shelf availability.
Highly efficient markets (such as in North America) are
characterised by high levels of customer orientation and
sophisticated partnering between supplier and customer.
By leveraging their volume of freight, major customers in North
America and Australia have been able to reduce the cost of freight
for all suppliers. They have also been able to better track and
co-ordinate distribution centre resources, store deliveries and
stock on shelf.
reductions have also been achieved by more efficient use of
vehicles and routes.
In 2005, with the involvement of the NZ Food & Grocery
Council, Foodstuffs began carrying out supply chain studies and
supplier surveys to come to a decision about how to respond to
these trends and best practices.
Foodstuff's Freight Strategy
In 2008, Foodstuffs Auckland, Wellington and South
Island launched a strategic primary freight initiative. They
created a new company, Foodstuffs Inbound, to manage this
With the cooperation of suppliers, and over a period of time,
Foodstuffs Inbound will take responsibility for all inbound
This includes the coordination, collection and transport of
goods from suppliers' consolidation depots to all distribution
centres, Gilmours, Toops, Trents and direct deliveries to member
stores together with
Duffy & Finns and Henry's.
A significant investment in transport specialists, facilities
and transport management systems has been made in order to fulfill
the programme's two main operating goals:
- Moving to Foodstuffs Inbound will not increase a supplier's
Foodstuffs related supply chain costs
- We will match or better all service levels currently
experienced by the supplier
A Primary Freight Model
It is Foodstuffs' intention to use a primary freight model for
transport costs. This means Foodstuffs will provide a
competitively-priced freight service to suppliers and list pricing
and trading terms will remain unchanged.