Planning optimisation integrated with telematics
August 1st 2011

Sainsbury's is seeing the benefit of rolling out an innovative Paragon implementation across its national distribution network.

Sixteen depots are now benefiting from ITMS – Sainsbury's Integrated Transport Management System – which integrates Paragon's planning optimisation with telematics to dramatically enhance the accuracy and execution of each day's complex transport plans. The system has increased driver productivity by 8%, improved empty running by 12%, cut store turnaround times by 15% and increased on-time delivery levels by 17%.

For over three years, Paragon software has underpinned the efficiency of daily deliveries from Sainsbury's 19 distribution centres to 527 supermarkets and 276 smaller stores, as well as the allocation of tractors, trailers, rigids and drivers to routes. Using Paragon's resource managed planning capability, which plans routes against the individual driver shifts and available vehicle resources, Sainsbury's ensures that each day's multi-shifted transport plans are realistic and achievable.

Now, Sainsbury's is capitalising on tightly integrating Paragon Routing & Scheduling Optimiser and Fleet Controller with Isotrak's Active Transport Management System (ATMS) to introduce unprecedented levels of certainty and control into the operation.

"Uncertainties are a fact of life for any transport operation so we build contingencies into our schedules, but they add costs," says Darren Jones, Sainsbury's head of logistics strategy.

"The more uncertainty that can be eliminated, the greater the control over costs." By using Fleet Controller to monitor the execution of the delivery schedule and Isotrak's ATMS to capture real-time data such as vehicle location and driver tachograph outputs, Sainsbury's gets accurate data with real value.When vehicle turnaround time at stores emerged as a critical factor, for instance, the planned contingency was cut by a consistent 15% by setting store targets.

But there's more to it than this, as Darren Jones explains: "Fleet Controller is looking forward all the time, making sure pre-set parameters such as delivery windows are met. If any criteria look like being breached, it will re-spin the schedule to avoid the breach. The implications of this are significant. If drivers are predicted to return early or late, Paragon automatically reallocates loads that will still meet promised store delivery windows."

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