Tesco, one of the world’s leading international retailers, and Paragon, the UK’s leading provider of routing, scheduling and transport optimisation solutions, are working together to ensure optimum transport efficiency for the Tesco distribution fleet.
Paragon’s sophisticated transport optimisation solutions have helped make significant savings both in terms of mileage and carbon emissions, supporting Tesco’s Sustainable Distribution strategy.
Reducing CO2 emissions
As part of its broader Sustainable Distribution strategy, leading international retailer Tesco has adopted Paragon strategic planning software as it looks to substantially reduce food miles and CO2 emissions. Tesco’s delivery fleet accounts for almost a sixth of its total carbon footprint and over the next five years the company is working to reduce the CO2 created per case of goods delivered by 50%, demonstrating its commitment to sustainability. As Alex Laffey, transport operations director for Tesco says: “We believe in sustainable growth – it is responsible, it is what our customers want and it makes good business sense.”
Strategic project
As part of this objective, Tesco and Paragon joined forces on a strategic project using Paragon’s routing, scheduling and network optimisation software. By reviewing the allocation of stores to depots, balancing warehouse capacities and daily throughput limits, then optimising the detailed transport schedules, Paragon and Tesco have worked together to reduce the overall food miles and associated carbon emissions.
Paragon managing director, William Salter, says: “Having modelled the distribution network and identified the process, Tesco can now repeat the exercise on an ongoing basis quickly and easily, as it seeks to achieve ambitious carbon reduction targets.”
The Benefits
The Tesco/Paragon project has enabled Tesco to make some significant savings, for example, as a result of improved store allocation, increased backhauling and improved fleet utilisation. Overall the mileage savings alone equate to over 150,000 miles saved each week which when expressed in terms of CO2 equates to thousands of tonnes saved each year.
Working Together
“We have used Paragon for more than a decade for routing and scheduling optimisation throughout our business,” comments Alex Laffey, “and the longevity of this relationship is a real testament to Paragon as a reliable solution and the professionalism of the people behind it. Using Paragon for the strategic analysis of our transport operations is playing an important role in Tesco’s Sustainable Distribution strategy – a key initiative for us as an organisation.”
