Steinhoff shakes up delivery operations
Steinhoff is reorganising its retail delivery operations as it looks to boost productivity and cut costs.
The furniture retailer ordered 67 new DAF trucks with de-mountable bodies from Asset Alliance on a five-year full service agreement, as well as 71 spare de-mount boxes, as part of a trial to improve its warehouse and delivery operations for its Bensons and Harveys brands.
Freestanding boxes can now be pre-loaded in the warehouse for both brands, while vehicles are making deliveries. The system also means de-mount boxes can be swapped directly at out-base locations. Co-loading the vehicles allow teams to deliver products from both brands, maximising efficiency and reducing mileage and fuel consumption.
Initial results of the trail have lead the group to consider switching its 275-strong commercial vehicle fleet to the new system.
‘The de-mountable bodies allow us to utilise the warehouse teams over a 24-hour window, pre-loading boxes ready for trunking and delivery to our out-base locations. Coupled with our new hub and spoke network, it’s a much more streamlined system, and has made a significant difference to our teams. The support and guidance we have received from Asset Alliance has been invaluable and we’re confident that we’ve specified exactly the right kit for what we have set out to achieve,’ said Kalwant Singh, Steinhoff supply chain and logistics director.
Steinhoff’s order included 10 12 tonne DAF LF 260 trucks, now based in Lutterworth on 24-hour trunking duties, and 57 7.5 tonne DAF LF 160 trucks that have joined the home delivery fleet and are based in Accrington, Dagenham, Dublin, Huntingdon, Lutterworth and Warrington. Each vehicle in the home delivery fleet is expected to cover up to 75,000 miles each year.
Asset Alliance is providing full fleet management support and an online portal, which collates compliance records, maintenance schedules and servicing information, and will cover all associated costs including tyre replacement, full servicing, maintenance and repair, safety inspections and breakdown cover. After five years, Steinhoff will return the vehicles to Asset Alliance.