The Co-op has improved on-shelf availability in the Southeast by using new warehouse management software at its regional distribution centre in Thurrock.

The deployment of Manhattan Associates’ software is the first stage of a UK-wide implementation, which has been extended to a second distribution centre in Nottingham. The project comes as The Co-op overhauls its entire distribution network.

The system replaces two warehouse management systems – one for ambient products and one for chilled.

Co-op director of food retail logistics Trevor Ashworth said that he has board approval for two new sites and is about to get approval for a third. Each new distribution centre is being equipped with the system and, where appropriate, existing sites will also get the system, even if they are earmarked for closure.

Ashworth said: “We will put the Manhattan system into our new Coventry centre in the first quarter of next year. After that, we will probably put it into a couple of legacy sites, as we won’t have another new distribution centre online until mid-2009.”

He added that the improvements in picking accuracy and efficiency makes deploying the system at sites set to close still worthwhile.

Ashworth said that the distribution overhaul will continue beyond 2010 and that the deployment of Manhattan Associate’s system will mirror that.

The distribution network transformation is taking place because it is inefficient and has too many depots and locations of the wrong size to properly service stores. This has also created inefficiency for the Co-op’s suppliers.

There was also a lack of capacity in certain parts of the network, which would have become an increasing problem as the business continued to grow.

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