September 2002

Britain's Safeway supermarket chain is simultaneously introducing radio-based technologies to provide communications and tracking in its delivery fleet and to reduce in-store restocking times. The two developments, although not explicitly connected, reflect what Mike Sturt, head of logistics development for the company, describes as "a commitment to develop new and innovative functionality".

An already-slick distribution operation should get even slicker following the introduction of a real-time fleet visibility and performance data system. Safeway is the first European retail distribution company to deploy Qualcomm's EutelTRACS mobile communications and tracking system.

EutelTRACS is an interactive, fully-integrated information management system that includes two-way mobile communications, satellite tracking and fleet management software. Messages are sent via satellite and through Eutelsat's network management centre to despatch centres throughout Europe.

Safeway is adding EutelTRACS to its own integrated transport management system. It says the addition of real-time capability will enable it to manage its distribution resources more efficiently. It is hoping that this, combined with close scrutiny of vehicle and driver performance, will improve vehicle utilisation, reducing unproductive mileage, and will aid safety and reduce environmental impact.

 

"Safeway has been at the leading edge of in-cab technology for many years," says Mike Sturt. "We already deliver a consistently high level of on-shelf availability to our customers, and by implementing the Qualcomm solution, we see considerable scope to widen the gap over our competitors."

Meanwhile, Safeway has been installing wireless local area networks in all its UK stores, choosing the Spectrum24 system from Symbol, and is using them to connect to Symbol PPT 2740 rugged handheld terminals. Around 2,000 of these are being deployed as part of the company's "Shelf-Edge Computing" (SEC) project.

The computers are being used by in-store staff for real-time stock-keeping and inventory checks, as well as for price checking and product lookup. Effectively this takes real-time management of the company's 25,000 stock units right out to the shop floor, linking with the company's central DB2 database.

Safeway says replenishment lead times have already been reduced in some cases from 48 to 24 hours, while stock-outs have reduced in some cases by as much 30 per cent.

Safeway is well-known for its willingness to innovate in order to reduce the costs of getting product into its 480 UK stores. It uses intermodal transport and double-deck trailers to reduce trunking costs, and all its semi-trailers are temperature-controlled and carry ambient as well as chilled and frozen foods to maximise route efficiencies. Although it was an early user of in-cab computers, fleet data has been historic and not in real-time.