Tesco has pushed forward in all areas of its transport operation in the past three years
2. David Potts
Title: Retail and Logistics Director
Organisation: Tesco
David Potts has been retail and logistics director at Tesco since 2004. We’re listing him not only because of Tesco’s buying power and sophisticated logistics, but also because he and his employer are representative of all major clients, especially major retailers.
The likes of Potts and Tesco’s transport director Alex Laffey must solve the logistics puzzle they are handed as efficiently as possible, juggling quality of service delivery with cost and environmental impact.
Tesco has pushed forward in all areas of its transport operation in the past three years. For example, it recently started the roll-out of Mercedes-Benz’s Fleetboard telematics system across the entire 1,800-strong fleet; once fitted in every vehicle, Tesco estimates a saving of £5m a year in fuel costs and a reduction of its annual CO2 output by 10,000 tonnes.
It has expanded its front-haul initiative – where transport operators that have dropped off goods at its RDCs then make deliveries to stores – and is helping its suppliers to collaborate on deliveries (the most recent example being arch rivals Mars and Nestlé).
These are the great strides the biggest retail clients (remember, as well as running its own fleet, Tesco engages about 100 third-party contractors) can make and can share with wider industry. But the biggest clients clearly also have the power to damage the industry by: engaging disreputable operators; setting terribly low rates; and, frankly, by being pretty hopeless at logistics in a handful of cases.
But, for the moment, the likes of Tesco are a shining beacon of achievement – so let’s cling to that positive.