UK growers could benefit from a revolutionised method of distribution, according to Douglas Gurr, chief executive of Blueheath, a logistics and distribution company.
And with 3,000,000 outlets selling food in the UK, including health clubs, cinemas and garage fore courts, the possibilities for selling fruit and vegetables are numerous, he told delegates at the Horticulture in Focus 2005 conference.
“Right now the supply chain does not deliver quickly and on-shelf availability is bad. But we have the technology to reduce stocks so they don't go off if you can get it there.Offering a value-added service is one way of being able to charge more for produce.”
Blueheath distributes various products including some fruit, vegetables and cut flowers, to multiples and independent retailers.
And without owning a single depot, or van, the company has managed to guarantee next day delivery, with 98 per cent stock reliability, and only four days holding time
Blueheath uses a transport fleet owned by British Bakeries.
This method enables the company to cut overhead costs. “We offer all the benefits of a delivered service at cash and carry prices,” Gurr said.
The company operates a highly automated system with 85 per cent of orders processed via the internet. It makes daily bulk drops of predictive orders into a central depot in Tamworth and then follows on nationwide deliveries are made throughout the afternoon for the following day.
Blueheath began four years ago with a computer system worth a mere £408 and made £120,000 in its first year. Profits have rapidly increased and the company, which went public, now enjoys annual sales of £80 million.
Gurr said while 90 per cent of his deliveries are made in vans operating ambient temperatures, chilled and frozen facilities could be implemented.
Blueheath currently services outlets in the UK only but Gurr said expansion to Ireland and the Channel Islands was not far off on the horizon.
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