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Reference Number BG 77
Title Key Performance Indicators for Non-Food Retail Distribution
Status Completed
Energy Categories Energy Efficiency (Transport) 15%;
Not Energy Related 85%;
Research Types Applied Research and Development 100%
Science and Technology Fields SOCIAL SCIENCES (Economics and Econometrics) 25%;
SOCIAL SCIENCES (Business and Management Studies) 25%;
ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering) 50%;
UKERC Cross Cutting Characterisation Not Cross-cutting 100%
Principal Investigator Project Contact
No email address given
AEA Technology Environment
Award Type R&D
Funding Source DfT
Start Date 01 December 2001
End Date 01 April 2003
Duration 16 months
Total Grant Value £74,785
Industrial Sectors Transport
Region South East
Programme TransportEnergy Best Practice
 
Investigators Principal Investigator Project Contact , AEA Technology Environment (99.999%)
  Other Investigator Project Contact , The Logistics Business (0.001%)
Web Site
Objectives The objective of this study is to measure KPIs of vehicle utilisation amongst suppliers, manufacturers and hauliers within the non-food retail distribution sector. Specific objectives are to: (i) develop industry agreed KPIs for distribution in the non-food retail sector (ii) calculate KPIs at both an industry and an organisation level
Abstract

The role of Key Performance Indicators (KPIs) for measuring the efficiency of distribution, and for identifying opportunities for efficiency improvements has been established through KPI surveys in the food distribution sector.

The EEBPP now wishes to extend KPIs of freight distribution into other distribution sectors. The non-food retail sector has been identified as a good opportunity for a KPI study, as there is a perception that there is a significant amount of waste in the supply chain which a KPI survey would quantify and identify opportunities for efficiency gains.

Summary of results

This survey has highlighted a variety of opportunities within the non-food retail sector for operators to improve fleet utilisation and energy efficiency.

Vehiclefill has been calculated as being only 51% of available weight capacity, 47% of available cube capacity but a higher 74% of the available deck length capacity. The use of double and triple deck trailers can offset this imbalance and increase vehicle fill by weight, cube and deck length use.

Significant use is made of return legs to collect waste from stores, to return emptyload units andto collect new merchandise from suppliers. However, this is often done on an ad hoc basis. Reverse logistics flows need to be centrally managed in order to make efficient and coordinated use of the vehicle fleet.

An average of 39% of the surveyfleet was in use each hour and a minimum of 16%, which corresponds broadly to night usage, was always in use throughout the audit period. Although there will be external constraints, such as restrictions on delivery times, there is scope for many operators to reduce fleet sizes by spreading activity throughout the 24 hour period with beneficial reductions in associated running and management costs.

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Key Performance Indicators for Non-Food Retail Distribution

Added to Database 06/02/08