Result? Shorter supply chains and improved on-shelf availability

Tesco, the UK’s biggest retailer, is asking its suppliers to shorten their supply chains by introducing “next day” deliveries for ambient products. In industry parlance this is known as “Day One for Day Two” which perhaps more accurately describes how the process works; orders received before a predetermined time on the first day are delivered within an agreed window on the second. Order picking and transportation typically takes place during the evening and overnight.

In fact this is a tried and tested process for chilled and fresh products where items need to be delivered in the shortest possible times so that retailers can offer consumers the best possible combination of service, quality and availability. The perceived wisdom has for some time been that ambient - in other words, non perishable - items did not need to be delivered as quickly. Instead the ambient grocery sector has historically operated with orders being placed on Day 1 for delivery on Day 3 across a Monday to Friday cycle.

But times are changing and retailers recognise that stock tied up in the supply chain - in the warehouse or on the road - requires more capital and generates costs that can be reduced. Moreover, aligning processes for chilled and ambient should in the long run provide synergies and efficiencies for retailers, suppliers and supply chain operators.

A number of major multiples have been driving demand for a Day 1 for Day 2 deliveries for ambient products to reduce working capital tied up in their supply chains and to improve on-shelf availability to enhance their customer service. Tesco has stated its desire to reduce ambient lead times and has been working with its suppliers and third party logistics providers to introduce this new way of working on a cost-neutral basis across its distribution network. Initial implementations of this service, including one managed by Culina Logistics, will cover a six-day, Monday to Saturday cycle.

This new operation commenced at the end of January 2012 and has been operating successfully since then, achieving these benefits for Tesco and its suppliers. The infrastructure and processes in place to support next day deliveries from Monday to Saturday mean the option to expand to full seven-day service is available if required by Tesco and its suppliers.

Although the lead time requirements of the ambient and chilled grocery markets are converging the profile and sensitivities of the products and the processes within many supplier and retailer distribution networks mean that the respective supply chains will remain largely independent for the foreseeable future. However, supply chain service providers who have significant operations in both sectors will be well placed to identify and take advantage of opportunities and synergies that lead to more efficient supply chains.

New Culina Group Company aims to meet demand for integrated perishable supply chain

Culina Fresh Limited is an innovative new door-to-door freight management service which offers high quality multi-modal supply chain capability incorporating road, rail, sea and air transportation for fresh produce, horticulture and other perishable goods. The company has been established to meet demand from producers, importers and retailers for an integrated solution to manage the complete supply chain from source, whatever the country, to final delivery throughout the UK and Europe.

Launched in September as a separate operating business within the Culina Group, Culina Fresh Limited is headed by two highly experienced leaders from the fresh food logistics sector: Managing Director, Thomas van Mourik (current CEO of market-leading Culina Logistics) and Operations Director, Paul Steele, who has 25 years’ freight forwarding experience, the last 15 in the perishable sector.

Many retailers are moving to direct sourcing as part of a strategy to simplify their supply chains and introduce shorter lead times and other efficiencies. Producers and importers are also adapting their supply chains to improve efficiencies in order to meet future challenges.

The business will initially operate from two strategic locations. Facilities at Heathrow Airport in the UK will provide offices and warehousing to co-ordinate air freighting operations. Valencia in Spain has been chosen for its proximity to the region where the company expects to manage significant volumes of fresh produce. The company will also work with carefully selected partners in North America, South America, Eastern and Southern Africa, and the Far East who will provide local support services.

“Producers and importers have been telling me that their existing supply chains are too disjointed and inefficient, and to date no-one has been prepared to take ownership and responsibility for door-to-door freight management,” says Paul Steele. “We’ve identified an exciting gap in the market which we’ll be filling with a high quality service that will address those issues and offer a new benchmark solution for freight management of temperature sensitive goods.”

Culina Group’s very own careers website (www.culinacareers.co.uk) went live in October to provide potential recruits with all the information they need when looking for a role with one of the logistics industry’s most progressive employers.

The site includes information about vacancies and career opportunities at each of the company’s ten sites in the UK and Ireland. Visitors can browse current vacancies at each location and filter opportunities by site and job category. There are also quick links to special events such as recruitment days.


The site is designed for easy navigation and includes a wide range of information about Culina Group and its operations. This includes profiles and comments from employees across a range of roles and locations who explain in their own words how working with Culina Logistics has provided them with excellent career opportunities. Information about the leadership team and other senior managers helps prospective employees gain further understanding about the company and its approach to doing business. Culina Group has an excellent staff retention rate, currently at 96 per cent, and actively encourages its employees to progress their careers through personal development and training.


“We are passionate about adding value down the line and this starts by recruiting and developing the best logistics professionals in the industry,” says Richard Berry. “With the site we aim to provide all the information high calibre people need to make a decision about joining the food & drink industry’s leading logistics provider.”