Moving to Hornby - 'the transition plan'
The construction progress of our Hornby ambient distribution
centre extension is now well on the way with steel fabrication,
roofing and some of the concrete floor placing evidence of this.
The new distribution centre offices are now complete with
occupation taking place. Our transition target date expectation
remains on track as being August/September 2014.
As advised in our last communication to you our intention is to
build initial stock efficiently and effectively into the new Hornby
DC over a period of some estimated 6 weeks following the handover
of the building in August 2014. Throughout this time we will
maintain the continuity of the expected high levels of supply
service to member's retail stores. This will be achieved through
the careful planning and joint execution of the Hornby inventory
build along with the well managed and optimised Papanui inventory
leading up to this time. The following will again summarise our
- Upon physical receipt of the initial inventory build order for
the Hornby DC, supply to members will continue from the residing
inventory at Papanui. For the transition of inventory in Papanui to
Hornby, systems have been developed to trigger a move of supply to
Hornby as soon as the last carton of an article runs out in
Papanui. This strategy will minimise the impact of physically
relocating inventory and reducing cost.
- Buyers will have a global view of inventory during this
transition time combining both the awaiting inventory in Hornby and
the residing inventory in Papanui.
- A plan will be introduced to address any slow inventory in
Papanui that might not transition in a timely manner. Specific
reporting for Papanui inventory run down will be introduced.
- No further purchase orders will be received into Papanui post
the initial Hornby purchase orders.
- Members will notice little difference in supply as they receive
orders from both DC's today.
Our procurement project team will provide you with a
projected/indicative (refer DRAFT order) purchase order/s for the
Hornby DC in the early weeks of April 2014. The purpose of this is
to allow your business time for the necessary forecasting and
planning requirements in order to meet our 'delivered in full'
expectations. The DRAFT order/s will be derived from a combination
of AWS, a consideration of days stock cover we want by A,B,C
article grouping and will have allowance to maximise efficiencies
for the rounding up to layers and full pallets wherever this is
possible. This might almost be viewed like the Christmas seasonal
build we execute with you each year but on a bigger scale. So what
part do we want you to play when you receive this DRAFT order from
- We want you to carefully review the detail of DRAFT order and
provide prompt feedback. Particular attention should be paid to any
articles that may be, or are to be discontinued and any seasonal
articles that would be inappropriate to build to the projected
order levels. Promotion volumes should also be taken into
- You must communicate the DRAFT order with your wider business
in order to plan the execution of delivery with us. We are happy to
discuss such options as palletised FCL's, direct delivery from
NDC's and any other options that would mutually benefit our joint
- We will require your acknowledgement from the instructions you
will receive re your DRAFT order from our team. These instructions
will be clear with contact and timing details. Your cooperation is
both expected and appreciated.
We are unable at this point in time to advise the exact delivery
dates/days/times for the confirmed purchase order we intend to
place with you as the build program and organisational timetable
will determine this. We can assure you with confidence that the
DRAFT order will be closely matched to that we will confirm and
communicate to you. It is expected that we will advise the
confirmed order to you at least 4 weeks prior to delivery.
In addition to the Papanui transition to Hornby we are also
eager to centralise the slower selling articles we are identifying
that currently reside in the Dunedin high volume regional DC (RDC).
It is our intention to integrate or link this centralisation as
part of the overall transition plan. Specific information in
relation to this will be addressed directly with the suppliers of
the articles identified. This will bring further mutual
efficiencies in our supply chain and importantly in service to our
We will take yet another opportunity to remind and request that
your company and key staff are contactable through the Foodstuffs
Supplier Relationship Management (SRM) contact data base. If you
are not yet set up in SRM please visit http://suppliers.foodstuffs.co.nz to do so as
soon as possible as our communication will come from the
appropriate contacts held here.
Finally we look forward to the intensity of dialogue that our
businesses will be engaging in over the coming months as we move
into a transition ready state. You are encouraged to commence this
with us as soon as possible after receiving the DRAFT order
information in April. The key contacts are referenced for your