Customer Profile
Initial 12 store trial in Scotland, rolled out across all 800+ stores, covers 1,500+ delivery vans, enabling 200,000 deliveries per week and combines fleet scheduling with telematics.
Challenge
Iceland Foods pioneered home delivery of groceries in the UK, starting in 1996. It now offers same-day delivery for online
orders, with shoppers able to specify two-hour time slots for receiving their goods. Through manual planning its drivers were completing up to six drops per two-hour delivery window. The company contracted Trakm8 to provide it with a web-based route optimisation and scheduling tool with integrated telematics, with a view to further improving productivity.
Deployment
Each individual store uses Route Monkey via a web portal. Iceland’s headquarters in Deeside can also access all the data from every store. This enables the Deeside-based customer service team to respond to phone enquiries with accurate ETAs. Optimisation is combined with Trakm8 telematics, with a focus on driver safety and productivity.
Results
Iceland was able to increase the number of drops from six to eight per two-hour window, and the number of delivery windows available to customers rose to seven per day. Overall, Iceland achieved a 30% increase in delivery driver productivity and a 10% saving on fuel. The telematics system helped Iceland to identify drivers with bad habits and re-train them. This delivered a 40% drop in accidents and a 20% decrease in the total cost of accidents. Fleet expenditure on tyres and vehicle servicing also declined.
“It allows us to know where the vans are, where they should be and to assess the performance of the vans and the drivers in a single system. It makes the whole thing work really well. We find Trakm8 Optimisation a very good company to work with and very supportive. They just make it happen for us.”
Jonathan Melia, Head of Delivered sales, Iceland Foods.
