Colruyt Group makes planning process 25% more efficient with ICT Logistics

Colruyt Group, one of Belgium's largest supermarket chains, sought to optimise its inbound process and ensure greater ease of use for planners, suppliers and transporters alike. ICT Logistics' Supply Chain Portal proved to be the ideal solution. "Our planning efforts have decreased by as much as 25%," says Cynthia Koeks, inbound logistics planner. In this article, Koeks explains the benefits currently offered by the portal and discusses opportunities for future improvements.

Colruyt Group distinguishes itself from its competitors by a wide range of products, high shop density and low prices. To deliver on this promise, the supermarket chain needs to keep a grip on its costs and supply chain efficiency. Colruyt Group has over 250 shops in Belgium, The Netherlands, Luxemburg and France, and all are supplied from a sophisticated network of distribution centres (DCs) and production sites. Every day, hundreds of (electric) trucks drive back and forth to ensure punctual deliveries to the DCs and eventually onto the shop shelves. Matching all these transport movements is a complex jigsaw puzzle that has to be solved every day anew.

Peak traffic in DCs

At a certain stage, a number of issues started occurring in the supply chain link for deliveries to the DCs, in particular the smooth harmonisation of activities. "Suppliers who wanted to reserve a time slot for a delivery dock did so by phone or e-mail. However, this was a time-consuming process and it was only possible during office hours," says Koeks. What’s more, the tool being used for inbound planning was no longer adequate. The system offered insufficient options for scheduling deliveries spread throughout the day, which regularly caused peak pressure in a distribution centre.

The issues meant that Colruyt Group was in need of a more advanced software system for its inbound process, which led to the choice of ICT Logistics' Supply Chain Portal. "This is a solution that makes it easy for different parties in the chain to work together and provides support for all steps in the logistics process - from inbound to outbound," explains Amy Dekkers, supply chain analyst at ICT Logistics. "The portal comprises functionality for matching purchase orders and reserving time slots for inbound goods, as well as for yard management and planning outbound shipments."

Planning 25% more efficient

Since the introduction of the portal, Colruyt Group's entire ecosystem has been reaping the benefits, Koeks observes. "Communications have become more efficient and planning efforts have decreased by as much as 25%. What’s great is that suppliers and transporters can now manage their delivery moments themselves, at times that suit them. The planning is performed automatically, without Colruyt Group employees having to spend much time on this aspect of the process."

"Suppliers have insight into their carriers' delivery times and can respond more quickly via the portal." - Cynthia Koeks, inbound logistics planner at Colruyt Group

Optimal delivery times

Planning quality has also increased noticeably, stresses ICT Logistics' Dekkers. "The portal determines the optimal delivery times, based partly on the available storage capacity in the DC. In addition, the system accurately calculates how long it will take to unload a cargo, which ensures that all parties know exactly how much time they need to schedule. An important advantage for Colruyt Group is that the system allows them to spread the workload in their distribution centres. Peaks and troughs are automatically smoothed out.

According to Koeks, both internal and external users are very pleased with the user-friendliness of the portal. "For instance, transporters like the fact that they can adjust time slots during the day to fit their planning. Suppliers have insight into their carriers' delivery times and can respond more quickly via the portal. There are also clear benefits for drivers: because deliveries are staggered and tightly scheduled, they face fewer delays or unnecessary waiting times."

Improving logistics performance

The introduction of the supply chain portal has allowed Colruyt Group to significantly strengthen its logistics performance - and thus its competitiveness. However, there is more in store. The portal stores all data on scheduled appointments and deliveries, making it possible, for example, to measure delivery reliability per supplier or carrier. It also provides insight into the completeness of orders and the quality of delivered goods. These are all valuable indicators that Colruyt Group can use to continuously improve performance, together with its supply chain partners.

Cynthia Koeks also realises this and looks forward to further optimising Colruyt Group's logistics processes in the future. "The cooperation with ICT Logistics has been particularly pleasant so far. Given the great results we have achieved here in Belgium, we are now also planning to implement the portal in our DCs in France. This project will start soon and will streamline our processes even further."