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UK: Hillebrand agrees Sainsbury SA deal

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The drinks logistics company FFG Hillebrand has landed a deal which will see it manage the operation of UK retailer Sainsbury's Wine Consolidation Centre (WCC) in South Africa. JF Hillebrand now runs both of Sainsbury's New World WCCs, the other being located in San Antonio, Chile.

"We are delighted in the confidence Sainsbury's has shown in giving us the opportunity to manage their New World Wine WCCs", commented David Mawer, business development director at FFG Hillebrand.

Sainsbury's hopes the WCC concept will deliver increased product availability, shorter supplier lead times, reduced minimum product order quantities and reduced UK stock holding. Suppliers are responsible for maintaining pre-agreed safety stock levels in the export warehouse, with full visibility of stock, both in the warehouse and in transit, being provided through Axis, Hillebrand's web-based order management tool.

"Sainsbury's can now order a mix of products available for export in the South African and Chilean WCCs on Thursday of week 1, filling a 40ft container, confident that the consolidated container will then be shipped the following weekend," Hillebrand said.

Mawer added: "There is a growing trend to focus more on the total supply chain cost to the business, rather than on individual parts. Businesses are recognizing that apparent savings made in particular areas may not necessarily translate into an overall cost saving to the business. Working closely with customers, the Hillebrand Group has clearly demonstrated that it has the tool set to deliver these overall business savings."


Sectors: Spirits, Wine

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