Making a complex operation seem simple for Allied Bakeries

Allied Bakeries’ fast paced needs

When you are one of the top 10 grocery brands in the UK, there is a lot of demand for your product. Allied Bakeries never sleeps, with stores across the UK wanting to restock their shelves before the sun rises. What’s more, those stock quantities could be different every day as they respond to customer demand.

Allied Bakeries require a 3PL provider that can accommodate this fast, relentless pace whilst always keeping an eye on the tight margins that are required in the fiercely competitive bakeries market.

Effortlessly delivering everyday

For a decade Gregory Group has almost exclusively supplied distribution services to Allied Bakeries. While delivering bakery products to shops sounds simple on paper, it is a very involved process that sees us receive stock alongside the specific customer orders. Our team then pick the products for every individual store – on average, that is just under 500,000 products every week. Then the products are sent out for delivery before most of us have even woken up.

Richard Hodgson, Director of Logistics at Allied Bakeries explains these intricacies in more detail:

Bread is quite different to other industries – we have to pick individual items and carry out multi-drops within very tight timescales. It’s an intense process and one which has high customer expectations. Ultimately, we are only as good as today’s delivery, so consistency is vital.”

“Thankfully, Gregory Group is switched on to what is required. I never worry about day-to-day service. Ever. That is down to the people. They are very knowledgeable. It really helps that a number were able to transfer with the activity and bring that experience with them. This understanding of bakery and bakery distribution is invaluable.

Cost efficiency is always a consideration

Cost is of paramount importance in the extremely competitive bakeries industry. Particularly because distribution is a large part of Allied Bakeries spend. Richard tells us more:

After Health and Safety my number one objective is cost management. Margins are extremely tight so we constantly review our business to see how we can better manage our costs and remain lean. A quarter of our expenditure goes on logistics, so this is an area we always keep on eye on. Thankfully, you understand these pressures very well.

To help improve cost efficiencies, we operate a unique solution for Allied Bakeries. The warehouse that receives and picks the products is used by both Allied Bakeries and one of their competitors. We manage the two relationships and ensure both parties receive the cost and environmental benefits achieved through a shared warehouse. As Richard explains, whilst this business model is unusual, it is very beneficial

Within a year we had paid for the setup of the project. But beyond cost, it also benefits us from a sustainability point of view.

“This sort of collaboration is a rarity – typically challenged by mistrust, but we don’t have any of that because the communication and visibility is really strong.”

The right people doing the right things