Dare wins battle Budgens to slim fleet • Supermarket chain
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Budgens is likely to reduce its transport fleet after a useage rates review to drive down costs.
"We need to keep our vehicles and trailers on the road for more hours in the day," says group financial director Graham Rigby.
The review of 59 vehicles and 119 trailers is expected to be completed by the middle of the year, says Rigby.
It includes measures on how to increase backloading and reduce delivery times into the company's 95 stores which are concentrated in the Midlands and South-East.
Rigby says it doesn't necessary follow that reducing the number of vehicles will mean job losses: he would like to see vehicle shifts rise from two a day to three. A new billing system currently on trial will make savings in stores, says Rigby.
Distribution costs were reduced by £1m last year, which helped to improve company performance: trading profit rose by 28% to 14.19m.
The company has dropped plans to use a satellite depot within the M25 boundary after trials found it was not cost effective or efficient to supplement the Wellingborough distribution centre. Efficiences are still sought at Wellingborough which will "improve its performance in the future," says the company.
Rigby says the company is still in discussion with other food retailers with regard to taking on thirdparty distribution work.
Exel Logistics collects Budgens' frozen-food lines from suppliers, and stores them at its Peterborough site. Budgens collects the produce from there and delivers to its stores.