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Retail Technology, Retail technology News

Store Twenty One saves £500,000 on transport costs

Friday April 20 2012

Routing and scheduling software implementation enables Fashion and homewares retailer to slash fleet

Store Twenty One distribution fleetRouting and scheduling software implementation enables Fashion and homewares retailer to slash fleet


Fashion and homeware retailer Store Twenty One has reduced the size of its fleet by 27% through efficiency improvements enabled by Paragon routing and scheduling software.


The company uses the software to optimise its distribution logistics operations, delivering annualised savings of £500,000. Store Twenty One is using the software to provide a consistent delivery service from its Solihull distribution centre to its current 220 stores throughout the UK.


Quick implementation with fast results


Martin Packer, Store Twenty One head of logistics and distribution, explained that the retailer began using Paragon Single Depot routing software in December 2011.


“We have been able to remove three 18-tonne rigid trucks from the fleet, which is a major saving when you add up fixed and running costs of the equipment and wages,” he said.


“The savings arise from using the software to plan optimised peak and off-peak delivery schedules for all of our stores, which make better use of our resources and improve overall efficiency of the logistics operations,” says.


“The stores benefit from accurate delivery time windows and the staff can continue with their in-store duties until the vehicles arrive to offload. Clearly, without Paragon we would not have been able to achieve this level of success,” Packer added.


Store Twenty One uses Paragon to plan two types of schedule: one for peak deliveries that include the 12 weeks leading up to Christmas and the Easter bank holidays, the other for off-peak deliveries for the rest of the year. The company also uses the software for strategic planning of new store routes and deliveries.


Supporting strategic store growth


“We began with inputting all the routes, deliveries and stores, with all the local restrictions for offloading, into the software. Then we involved our drivers and regional managers to analyse and agree or adjust the schedules. This approach is proving to be worthwhile and its value is demonstrated by the delivery consistencies and savings we are achieving,” he said.


Packer also said Store Twenty One was continuing its store expansion programme across the UK and has a separate 45,000-square-foot facility to service these new stores that will also use Paragon to provide fast and accurate planning of fuel-efficient routes.


“The software is very flexible as it allows us to remove stores from the plan without having to go back to the beginning and start from scratch; it is simply a matter of re-running it to update the data,” he concluded.