Source: MD logistika
Behaviours have been changing in recent years with more and more people returning to live in city and town centres again. Retail chains are adjusting by opening smaller shops in the centre. Supplying these shops most effectively with frozen and refrigerated food is solved by the Hub & Spoke FMCG Logistics Model, developed by the MD logistika company.
Smaller shops usually do not have large storage or stock areas and therefore usually require to be supplied more often. Meeting demand by using classic delivery trucks is often not possible due to inadequate downtown transport infrastructure. In the Hub & Spoke model operated by MD logistika, frozen food from all suppliers is gathered in a the central storage facility of MD logistika in Dašice. The trucks then distribute orders to seven regional refrigeration depots. From there, the goods are distributed to particular shops, either by small trucks with a capacity of 33 Europallet spaces or vans with 6 or 8 Europallet spaces. The goods reach the customer within 48 hours of ordering.
Since the beginning of 2016, the company has distributed 194,000 Europallets of frozen or refrigerated food. The full load of the trucks with frozen food increased from 76 percent to today’s 96 percent. Owing to that the company has decreased its CO2 emissions for each transported Europallet. The company has thus lowered its CO2 emissions by over 190 tons annually.
MD logistika is currently working on expanding the network of Hub & Spoke to Slovakia where the plan is to have two hubs for frozen and refrigerated food. Four depots will be tied to those hubs which will cover the whole country.
In 2016 the project gained the title Logistics project of the year in the Czech Republic. Consequently, the project has moved on to the 2017 European Logistics Association where it is competing among 6 finalists from all over Europe for the Gold Medal ELA Award.
The Hub & Spoke method was first used in airplane cargo transport where the goods were transported by planes to several big distribution storage facilities and from there on roads to customers. It is named after the wheel of a bike which has a hub which is tied to a series of spokes.
MD logistika offers complete logistics service for groceries and FMCG. It has storage facilities in Dašice in the Pardubice region and in the Prague area Horní Počernice with a total of 92,000 Europallet spaces.
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