Mercadona sustainable logistics

Based on the Environmental Management System and Circular Economy, Mercadona includes respect for the environment and dedicates more and more efforts towards reducing the environmental impact of its activity, to manufacture more with less resources, promoting the Circular Economy in its processes.

Mercadona has been working for more than 25 years with his logistic totaler supplier Logifruit, with whom have consolidated a sustainable model based on the optimization of resources. One of the main reasons to succeed in is the launched of the plastic pallet and the folding box which are sanitizable, reusable and recyclable.

A clear example of this resource’s optimization is the replacement of rigid boxes by folding boxes which have meant benefits for the whole supply chain. In the space occupied by a rigid box, three folding boxes are transported now. That’s mean a decrease of 96.710 trucks trips, less fuel used and carbon dioxide emissions into the atmosphere.

Mercadona bet for this circular economy model where the design and resources used allow that pallet and boxes to be finish many circles. From the raw material supplier to the store. You can also add its cleanliness, easy repair and recyclability of these modular designs.

After each cycle of use, each pallet or box return to the warehouse and begin an automated cleaning and disinfection process that guarantees safety and hygiene. After a few minutes they are available to start a new cycle. This way of working allows Mercadona a highly raw material exploitation and work for a “zero residue” program.

The reutilization of these boxes and pallets avoids the usage of 180.000 tons a year of one-use materials. They also improve the transportation and storage costs which help to a competitive price strategy.

Reverse logistics

This process also works due to the reverse logistics and the “Eight strategy”, which main objective is not to transport “air”, that means that trucks do not travel with empty loads.

Trucks carry the used containers to a centre where they are inspected and fixed if it is necessary.  After a few minutes, containers are ready to return to suppliers or stores.  

Walmart’s Consolidation Centres Aimed at Supply Chain Efficiency

Walmart’s consolidation centres all over the U.S are expected to increase the speed and efficiencies with Walmart’s supply chain. These high-tech consolidations centres are able to receive, sort and ship freight out to the retailer’s other 42 regional distribution centres.

Consolidation Centres way of working

Walmart operates approximately 10,500 stores and clubs under 48 banners in 24 countries and eCommerce websites. We employ over 2.2 million associates around the world — nearly 1.5 million in the U.S. alone.

Walmart’s supply chain now uses 11 third -party consolidation centres know as CenterPoint, which are located throughout the U.S. The facilities mostly consist of cross dock terminals that take products shipped using less than full-truckload (LTL) and bundle them into full-truckloads for better efficiencies. Walmart likes to move products in full-truckload because it is less expensive, minimizing the net landed cost of goods into their distribution network. The freight coming from the consolidation centers is routed to Walmart’s 42 distribution centers, which then concentrate on moving the items to the stores.

Rather than suppliers sending small shipments directly to Walmart’s distribution centres oround the country, Walmart reduces freight costs by having suppliers transporting their LTL loads into the nearest CenterPoint, which consolidates all merchandise going to the same distribution centre with the goal to achieve a full-truckload inbound to every distribution centre. Once the full-truckload is achieved or a time window constraint has elapsed, trucks are dispatched from the CenterPoint to the distribution centre.

Consolidation Centres design

CenterPoint distribution centres are similar in shape and size to cross dock terminals in which they tend to be long skinny buildings with many dock doors on either side of the building. The exception to this rule is with facilities that must use cold storage. These facilities are strategically located around the U.S with the objectives being to minimize inbound transportation costs primarily for LTL loads.

Coca-Cola bottlers, an example of automated warehousing.

Based on the usage of different technologies such as warehouse automation, the company wants to continuously improve its supply chain management.

Coca-cola company

Coca-Cola is one of the most popular drinks and famous brand in the world. More than 1,9 billion of Coca-Cola are sold everyday in more than 200 countries.

Logistically, this is a big challenge. The soft drink already arrives and its parteners’ plants in syrup form and is then mixed with carbon dioxide and sugar.

Coca-Cola warehousing

The material handling activities are carried out through shuttle cars equipped with digital trolleys and aisle equipment, infeed/outfeed bays, infeed/ outfeed single-pallet vertical pallet lifts, steering shuttles, and dispatch sequencer shuttles.

Automated Guided Vehicles complete the material handling phase. They can move pallets (Finish Good or Empty Pallet stacks), picking up or depositing the load unit without human intervention.

Meanwhile and operator will could coordinate, manage, and control all the material handling operations, from pallets storage managing, inventory, shipping and communications.

This way of work optimizes space utilization and guarantee the maximum throughput, aiming at the automated management of internal logistics from the automated warehouse towards the production departments and vice versa.

Coca-Cola supply chain partners – a global network model

Coca-Cola is a global company that operates at the local level, that is why there are around 300 bottling partners worldwide. The process starts with procurement of raw materials (agricultural products such as sugar, cane and fruit and water). The most important ingredients, water and sugar, are sourced locally by each partner.

The following step in Coca-Cola supply chain is the production of the concentrate, which is mixed with water, sugar and carbon dioxide by the bottling plants.

After mixing, the bottlers package, market and distribute the finished beverage to grocery stores, restaurants, etc.

Therefore, the management of supplier relationships and the continuous monitoring of suppliers is of great importance to the company.