Following the integration of Safeway, Morrisons has embarked on a three year project to optimize all operations within its business. It has strengthened its supply chain infrastructure and processes to support the increasing volumes it has been experiencing since the acquisition of Safeway. It has expanded its existing fruit packing facility in Thrapston, Northamptonshire, whilst opening a new vegetable packing site in nearby Rushden - all of which were operating at full capacity in the period, helping to improve efficiency further.

Morrisons opened a new distribution centre in Kettering serving more than 70 stores in its catchment area, while closing three ex-Safeway sites (Bristol, Aylesford and Warrington). It is on track to deliver £30m of distribution costs this year and will explore further opportunities to optimize its network.

IGD reported that the roll out of an electronic trading system will help integrate its supply chain systems with suppliers. The system provided by freeway Commerce uses an EDI platform at its heart and backoffice systems offering it greater efficiencies in the transfer of information internally and externally with suppliers.

Martyn Jones has been at the forefront of the major changes at Morrisons and will be speaking at IGD's Supply Chain Summit, to be held in London on November 9th. He will outline the key developments that have taken place across the company's supply chain and trading, and highlight key priorities for suppliers in 2007. He has been at Morrisons since 1990 and has responsibility for in-store pharmacy, grocery and BWS, as well as running the supply chain.