CASE STUDY: GREGGS

Greggs is the leading bakery food on the go retailer in the United Kingdom

We’re pleased most with the sustained MPG improvements, which were significantly ahead of target.

Richard Penna, Group Logistics Manager, Greggs PLC

Greggs is a much loved and trusted UK bakery brand, with a strong bakery heritage since the 1930’s.

Today, it competes successfully in the UK’s ultra-competitive “food-on-the-go” market, with 1,650 shops, a turnover of £800 million and 19,500 employees.

Every day, Greggs has 3,000+ on-time deliveries to make to its 1,650 shops from 2 central manufacturing units, 11 bakeries and 12 operating centres right across the UK. To meet this demand, Greggs requires a lean, efficient logistics operation – and it does this with a fleet of 250+ HGVs and a team of over 350 drivers.

The problem

At a cost of over £30 million per annum, Greggs’ logistic operations had much to gain from a telematics solution. Before deciding on a specific vendor, Greggs identified the need for a telematics systems which could provide a sustained improvement in fuel consumption, improved food safety and labour productivity, better route efficiency, and very importantly, a reduction in the number of Road Traffic Incidents (RTIs).

A robust aftersales service was crucial also.

To quantify the business case for the system, Greggs decided that they would need a 2% sustained improvement in fuel consumption to break even on the cost of implementing a system.

The solution

Greggs contacted 20 UK telematics companies and tested from a shortlist of 6 companies. Following a trial, which indicated an 8% – 10% improvement in fuel consumption, Greggs chose Blue Tree Systems based on the breadth and depth of the fleet management solutions.

Deploying Blue Tree’s robust hardware across its 250-strong fleet, Greggs implemented Fuel Management, Driving Style, Tachograph, Temperature, Vehicle Tracking and Mobile Workforce applications.

The key benefits for Greggs

  • 11% IMPROVEMENT IN MPG £750,000 FUEL SAVINGS / pa
  • 50% ANNUAL REDUCTION IN INSURANCE CLAIMS
  • DRIVER SPEEDING ELIMINATED
  • COMPREHENSIVE BUSINESS INTELLIGENCE FOR ACCIDENT INVESTIGATION

Accuracy of the fuel data: By using Blue Tree’s Fuel Auditor system – based on imported fuel purchase data and fuel stock-taking – Greggs compared fuel purchases against the actual fuel burned in their vehicles with a high degree of accuracy.

This data was then used to provide accurate fuel consumption figures for both truck and driver. This data was used further to compare vehicle makes and models before purchasing to ensure the vehicles were suited to the job.

Driver training: Greggs drilled down into individual drivers’ driving habits and introduced an Advanced Driver Training and Performance Coaching programme.

Using dedicated driver trainers, 1-on-1 on-the-job training was given to each driver over a 1-day period at each site.

Trainers reviewed the telematics data for each driver before each training session. Coaching was conducted on-the-road and using a wide screen monitor, daily debriefs are held and escalation procedures adopted.

Cold Chain Food Monitoring: With Blue Tree’s ability to connect directly into OEM refrigeration units, live complete temperature monitoring and analytics were available to protect chilled products.

Tachograph Compliance: Blue Tree offered a live view of drivers’ remaining working hours; remote, automated downloading of tacho mass memory and drivers cards; and in-depth tachograph analysis.

The results

Once Greggs had the data in hand, the results were immediate and obvious. By focusing on changing driver behaviour in the areas of overrevving, idling, hard braking and speeding, the overall behaviour of Greggs’ drivers changed significantly.

Using Driver Score Cards, drivers were able to see the improvements made on an individual basis. Friendly competition was initiated, through the use of non-confidential league tables.

By identifying routes with increased potential for incidents at certain times of the day and day of the week, routes were altered on a safety and workability basis. Speeding was significantly reduced.

With positive changes to driver behaviour, the financial benefits became apparent.

There was a gradual sustained 11% year on year improvement over three years on fuel consumption, measured by miles per gallon.

This resulted in equivalent savings of approximately £75OK on fuel each year. Other financial benefits included a halving of insurance claims over a 3-year period, resulting in a reduced insurance premium.

In addition, RTI accident investigation became easier, where locations, speeding and braking incidents could be verified much more readily.

By identifying routes with increased potential for incidents at certain times of the day and day of the week, routes were altered on a safety and workability basis.

The future

Richard Penna, Group Logistics Manager for Greggs PLC said that they are “pleased most with the sustained Mileage per Gallon improvements, which were significantly ahead of target when we put forward the business case for a telematics system. There have also been clear safety, compliance and customer service benefits”.

The next steps for Greggs include moving forward to implement more safety features such as road speed mapping, automated accident reporting and camera systems including blind spot cameras and sensors for cyclists, to get as much value as possible out of an already valuable solution.