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Better logistics can help supermarket profits and supplier margins, according to ORTEC

Sydney, 6 July 2012 - Reports that supermarket Woolworths is in negotiations with suppliers and is seeking another round of cost savings should prompt Australian supermarkets and their suppliers to revisit their logistics operations, according to logistics software company ORTEC.

Alan Thomas, joint managing director of ORTEC Australia & New Zealand, said,  "ORTEC supplies logistics software to some of the biggest supermarket operations around the world, including here in Australia. So we can compare supplier margins, supermarket prices, and how both are influenced by how well suppliers ship to their supermarket customers, and how the supermarkets distribute goods through their own networks.

"Overseas, suppliers' margins are much smaller, so they have been forced to improve their logistics operations. One example is General Mills, in the United States, which uses advanced software to optimise the space it fills in every truck, literally down to the square centimetre.

"If Australian suppliers and Australian supermarkets aren't already doing something similar, there is an opportunity  to find more savings per item in their logistics costs. There may well be literally room for improvement."


ORTEC is one of the largest providers of advanced planning and optimisation software solutions and consulting services. ORTEC systems optimise fleet routing and despatch, vehicle and pallet loading, workforce scheduling, delivery forecasting and network planning. ORTEC has over 1,650 customers worldwide and employs over 650 employees and offices in Europe, North America, Australia and Asia. For more information, visit  www.ortec.com

Media contact:
Alan Smith, 0404 432 700
Issued on behalf of ORTEC Australia & New Zealand.