Proving the Business Case for the Internet of Things

Aldi to restructure UK logistics network

Steve Rogerson
February 5, 2015

The British subsidiary of the supermarket chain Aldi intends to enhance its supply network, transport processes and logistics centres in the UK and Ireland using PSIglobal, a software product for strategic planning, controlling and optimisation of logistics networks, from PSI Logistics in Germany.
 
Aldi opened its first British store in 1990 and is expanding in the British market. The company is investing £600m as it opens over 550 new stores between now and 2022, more than doubling its employee number in the UK.
 
The supermarket chain chose the strategic planning and optimisation system from PSI Logistics to optimise its procurement networks and transport processes for store delivery in the UK and Ireland. In addition to cost and resource aspects, the system also takes account of the carbon footprint during the optimisation process. PSIglobal provides decision support for locating new logistics centres and determines an optimal layout for the commodity flow.
 
PSIglobal is a logistics management system that facilitates mapping, analysis, control and optimal layout for multi-level and multi-modal logistics networks. Its scenario technology and integrated analysis methods allow it to model, check and optimise multimodal networks and multi-level processes and to identify key figures and sensitivities. Using a model based approach, it computes the optimal number and location of warehouses and optimises transport structures to reduce warehousing and transportation costs. Mathematical methods allow the incorporation of forecast volumes and labour cost changes into the planning process to allow calibration of the networks accordingly.
 
Over the past two years, numerous recognised brand leaders have decided to use PSIglobal to optimise their logistics processes. To date PSIglobal has optimised more than 15 million transport orders.
 
PSI develops and integrates complete systems for energy management (gas, oil, electricity, heat and energy trading), production management (mining, metals, automotive, mechanical engineering and logistics) and infrastructure management for transport and safety. PSI was founded in 1969 and employs 1700 people worldwide.