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We’ve brought together the latest news and initiatives relating to recycling and sustainability. In this round-up, we’ll review how Tesco is planning to trial a new innovative system that converts plastic to oil, while Asda is set to launch a partnership that aims to increase the recyclability of baby food pouches. We’ll also look at Aldi’s pledge to develop fully sustainable packaging by 2025, while in Russia, Budweiser is launching the ReCup sports arena using recycled plastic bottles.

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Asda has worked with Clipper Logistics since 2008. The partnership agreement has been a successful collaboration, with Clipper managing online order fulfilment and returns, storage and receipts from its sites in Ollerton and Doncaster.

Continuing a successful partnership

Asda's senior director for central logistics, Chris Hall said: “We are looking forward to a continued partnership with Clipper for fulfilment of our George.com e-commerce ranges through their Ollerton site. "Clipper has a long history of excellent service and this contract builds upon their expertise and experience to deliver for our customers. We look forward to the future with Clipper in this fast paced, highly demanding sector.”

Source: Clipper

Carl Muir, operations director at Clipper Logistics, said: “Our relationship with the Asda and George brands has gone from strength to strength over the last 10 years, and we are delighted to be continually valued as an agile and innovative partner. "We are looking forward to expanding together with Asda, as increased volumes drive additional resource requirements, with the possible addition of a further packing machine in 2019. We look forward to continuing to maintain our strong service levels and reinforce the efficiency/effectiveness of our partnership.”

E-Fulfillment Solutions

Clipper Logistics upgraded its Ollerton site to further develop its supply chain offering to Asda. During a 16-week project, the warehouse system was upgraded, several conveyors were installed and a new team was both recruited and trained. Further to these physical developments, Clipper also integrated its warehouse management system with ASDA’s IT systems providing additional support to the customer order process.

The UK Competition and Markets Authority has revealed the issues it will scrutinise for its in depth investigation into the proposed Sainsbury's - Asda merger. The investigation will consider how the merger may affect competition in each of the product markets in which it operates, at both a national level and in each local area.

Focus on outcomes for shoppers

Central to the inquiry will be an assessment of whether the removal of one of the competitors could lead to a worse outcome for shoppers. The CMA identifies three types of possible adverse effect from the removal of a competitor, namely:

  • the impetus it would give the merged entity to act against shoppers' interests (e.g. through higher prices, a reduction in a store's range and reduced incentive to innovate);
  • coordinated effects (i.e. make it more likely for grocers to co-ordinate / align their behaviour) and
  • the potential for a negative impact on suppliers from the concentration of buying power and the knock on impact this could have on shoppers, for instance from suppliers being less able to innovate of having to charge higher prices at retailers that compete with the combined Sainsbury's - Asda.

The inquiry will assess the impact on competition separately for in-store groceries, online grocery, general merchandise and fuel.

Aldi and Lidl included in market definition

The CMA has decided that Aldi and Lidl should be considered as competitors in its assessment of local and national competitors and the extent to which customers treat them as close alternatives to different types of shopping missions.

The CMA expects to publish its provisional findings early next year, ahead of the statutory deadline for its final decision on 5 March 2019. Any responses to the Issues Statement must be made by October 30th.

Sainsbury's - Asda to set out 'pro-competitive case'

Reacting to the release of the Issues Statement, Sainsbury's Asda said “We recognise that this is an important merger and welcome the detailed and thorough review by the CMA. We look forward to working constructively with the CMA and inquiry panel during this second phase of the process and to making our case that the proposed merger is pro-competitive. Customers will be the big winners from the combination. By bringing our two businesses together, we will be able to invest further in more convenient ways of shopping while lowering prices and reducing the cost of living for millions of UK households.” 

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Barcode standards agency, GS1 UK, has launched its new product data service, productDNA.

ProductDNA aims to deliver accurate and consistent data; capturing, managing and distribution information in way that is easily accessed and shared across the supply chain. The productDNA service consists of:

  • A new industry data model for suppliers to share product data with retailers
  • A cloud-based secure product catalogue
  • An independent physical product verification to ensure accuracy of product data

Easy access to data

The service covers over 150 product attributes, including ingredients, weight, dimensions, nutritional values and allergen information. Brands and suppliers own the data, and retailers have easy access to the information, ensuring that shoppers can receive accurate and up to date information about their products.

Improving efficiencies

GS1 UK is managing productDNA through its Retail Grocery Advisory Board. The board aims to provide better customer experience whilst improving efficiencies throughout the supply chain. Members include major retailers (Asda, Boots, Co-op, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose) and manufacturers (Coca Cola Enterprises, Dairy Crest, Kellogg’s, Mondelez, Müller, Nestlé, PepsiCo P&G and Unilever) in the UK.

Promoting better quality data

GS1 UK’s chief executive, Gary Lynch, commented: “The grocery sector has spent years grappling with the transfer of data. ProductDNA sets out agreed processes and data rules, based on the common need to improve product data quality and efficient sharing across the retail industry. We’re excited to have created productDNA in partnership with our members to address these issues and look forward to its adoption by the industry.”

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