Optimisation in focus: Iceland
Route optimisation allows Iceland increase deliveries while cutting costs
Trakm8 Optimisation has helped Iceland to perfect its home delivery offering.
Supermarket giant, Iceland Foods, has seen a 30% boost in home delivery productivity. The combination of telematics and route optimisation from Trakm8 Group has activated fuel savings of up to 10% and opened the doors to huge benefits in terms of improved customer service.
Iceland has been using Trakm8’s vehicle scheduling software since 2013 and before then, the company’s delivery drivers would calculate their own routes, completing a maximum of six drops in a two-hour window. By introducing routeing and scheduling technology to their fleet, Iceland was able to increase the number of drops they are able to carry out to eight per two-hour window and the number of delivery windows available to customers to seven per day, between 8am and 11pm.
Jonathan Melia, Head of Delivered Sales at Iceland, said: “By using the Route Monkey System we can keep taking those delivery orders until the window is full.”
This enables Iceland to now complete up to 200,000 deliveries per week from nearly 800 site across the UK, using 1,250 – 1,500 vans. Over the busy Christmas period, the number of jobs is almost twice that, with Iceland offering drop-off slots from 6am to midnight.
“Out volumes at Christmas will double to around 400,000 deliveries per week,” added Melia.
Those drops are a combination of home deliveries where the customer has completed their own shop in store but requires the goods to be delivered home, along with online orders that have been picked by Iceland’s staff.
Adopting Route Monkey resulted in a 10% cut in fuel consumption within the first few months of operation. With a current annual fuel bill of around £5 million, that represents a major saving for Iceland.
In addition, the company has benefited from an extra 30% increase in productivity from the 50,000 hours that its drivers spend at the wheel each week.