Success story
Albert Heijn
E-commerce
Albert Heijn’s online division is one of the largest e-commerce platforms in the Netherlands. Predictability towards customers and reliability of grocery deliveries are paramount to the online supermarket. To achieve this, Albert Heijn e-commerce has been using Simacan’s smart transport execution management platform for years.
- Fleet of >1,600 box vans, 8 HSCs and 27 hubs;
- Distributed between AH’s own fleet and that of several logistics service providers;
- Continuous plans for flexibility and an optimal customer experience;
- Goal: making transport activities more sustainable.
Distribution network for home delivery
Albert Heijn e-commerce provides home delivery of online Albert Heijn grocery orders in the Netherlands and Belgium. AH has set up a sophisticated distribution network for this purpose. This network consists of eight Home Shop Centres (HSCs) – distribution centres (DCs) where orders are picked – 27 regional hubs, and more than 1,600 box vans. Albert Heijn performs part of the operation, while another part is outsourced to various logistics service providers. They manage their own hubs and have their own AH box vans.
Transport planning and real-time monitoring
Planning and monitoring of the entire home delivery operation is carried out by the planning and support department. This is where all online orders are received, and delivery routes are planned. The desired delivery window that consumers have indicated is taken into account when schedules are drawn up. Once the schedule is finalised, Simacan automatically sends the relevant orders and instructions to the correct vehicles and drivers. Simacan also combines all data from GPS systems and on-board units (OBUs) connected to the vehicles. This means planning and support employees can monitor the progress of all trips in real time.
When will my groceries arrive?
Another well-known application that is fed by Simacan is Albert Heijn’s track & trace application. Using the online portal or the Albert Heijn supermarket app, consumers can see when the delivery person is at their door – obviously, within the time period that they specified when placing their order. Simacan ensures that the delivery time is continuously updated. This is done based on the actual progress of the trip, the location (via GPS) of the vans, and the current traffic situation.
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Control over transport execution with continuous planning
Albert Heijn uses Simacan to maintain control of planning and execution. The planning and support employees can see exactly how far a delivery person has got on their trip and the exact status of that trip. The planners mainly work with the ‘exceptions’ overview in the Control Tower. This view shows which trips deviate from the schedule, and where things may need to be managed to continue to meet the delivery conditions. Planners can intervene immediately by changing stops or sending out extra vans, for example. Meanwhile, the schedule is continuously updated and revised automatically (continuous planning). These changes are immediately visible to all stakeholders.
Process improvements and sustainability
Reliability and a high service level to end customers are priorities. But at the same time, Albert Heijn e-commerce also wants to make its transport activities more sustainable, such as by optimising the use of capacity and minimising driver waiting times (for example, avoiding drivers arriving too early at a delivery address). Another issue is whether drivers are allowed enough time for a proper break. Simacan offers support for these business objectives. Planners can continuously improve planning using the data and analysis options in Simacan.
Deviations from the schedule are carefully analysed. Why does the stop time at one logistics hub take much longer than at another hub? Why does it take longer than average to unload the groceries in a particular street? These are just two examples of issues that can be flagged, analysed and improved by AH as the basis for increasing the efficiency of the AH operation.
