Supply chain built around ensuring customers are always happy

Driving more than 23 000 kilometres daily to ensure their 400 stores countrywide are always stocked to capacity, Woolworths is patently aware of the importance of effective supply chain logistics. The major retailer opened its doors to members of the Chartered Institute of Logistics & Transport South Africa (Ciltsa) last week for a site visit of its Midrand distribution centre, which handles about 65% of the company’s total volume. According to Angela D’Amato, transport operations manager for Woolworths, a fleet of 70 vehicles services the food section of Woolworths alone. “We make 250 scheduled deliveries every day with 20 vehicles departing from our Midrand warehouse every 30 minutes.” Woolworths has some 400 corporate full line stores countrywide with franchises in Mozambique, Swaziland and Botswana. It also has a large number of stand-alone food outlets as well as a presence at certain filling stations. “Supply chain management is critical to the company,” says D’Amato. “The two major concerns for us at all times is cost-effectiveness and availability.” Vusi Mgidi, Woolworths general manager: foods, says customer experience is possibly the most important factor for the company. “Our supply chain is built around ensuring our customers are always kept happy and that their shopping experience is pleasant.” According to Mgidi this manifests practically in several ways – for example all stores are packed before the doors open to the public and perishables are at their freshest at all times. “Our perishables that will be in our stores tomorrow are still being picked and packed today and will only arrive from our suppliers late afternoon before being delivered between midnight and 8am the next morning.” Strict turnaround times have to be adhered to and vehicles have a 15 minute leeway for being late at the depot, where the average turnaround time of a truck is only 45 minutes. “The same time frame applies when delivering to the stores. Being on time is part of ensuring the supply chain remains sustainable and cost-effective while giving us a competitive advantage,” said Mgidi.