It was eight years ago that the Kroger Company created its new design for grocery distribution, and today it is fully operational. It uses multiple system suppliers but yet the results are staggering. In the “old days” Kroger would move pallets with traditional fork lifts then store the pallets in racks. When it came to creating mixed pallets of a variety of food items, they did it the old fashioned way, they used manual labor.

The new system however allows Kroger to put away full pallets, then break them down and rebuild them into delivery ready store pallets according to how the product will be displayed on the store shelves. Under this new system, Kroger now processes approximately 110,000 cases per day with a capacity of 160,000 cases daily. Kroger measures their success in a number of ways in addition to cost savings, including the accuracy of orders, the reduction in product damage, better utilization of cube in their delivery trucks and trailers but most importantly, their customers get what they want, when they want it at the price they want to pay.

The message here is that all companies whether large or small should be looking at ways to improve their processes. As one of our Supply Chain Consultant friends recently put it, “many companies do not even know they have a problem until we show it to them”.

So why not call in a supply chain or transportation consultant. Have them take a look around with a no cost-no obligation analysis to see what can be done to enhance your business. And remember, it’s not always about lower costs.

Tony Nuzio