Paragon Delivery Route Optimization Software Helps Tesco Cut Carbon Emissions

Joint strategic analysis project optimizes transportation schedules, cuts CO₂ emissions & supports Tesco’s Sustainable Distribution strategy.

Tesco, one of the world’s leading international retailers, and Paragon, the leading provider of delivery route optimization solutions, are working together to ensure optimum transportation efficiency for the Tesco distribution fleet. Paragon’s sophisticated planning solutions have helped make significant savings both in terms of mileage and carbon emissions, supporting Tesco’s Sustainable Distribution strategy.

As part of its broader Sustainable Distribution strategy, leading international retailer Tesco has adopted Paragon strategic planning software as it looks to substantially reduce food miles and CO₂ emissions. Tesco’s delivery fleet accounts for almost a sixth of its total carbon footprint and over the next five years the company is working to reduce the CO₂ created per case of goods delivered by 50%, demonstrating its commitment to sustainability.

By reviewing the allocation of stores to DCs, balancing warehouse capacities and daily throughput limits, then optimizing the detailed transportation schedules, Paragon and Tesco have worked together to reduce the overall food miles and associated carbon emissions.

The project has enabled Tesco to make some significant savings, for example, as a result of improved store allocation, increased backhauling and improved fleet utilization. Overall the mileage savings alone equate to over 150,000 miles saved each week which when expressed in terms of CO₂ equates to thousands of tons saved each year. Also, having modeled the distribution network and identified the process, Tesco can now repeat the exercise on an ongoing basis quickly and easily, as it seeks to achieve ambitious carbon reduction targets.

“We believe in sustainable growth – it is responsible, it is what our customers want and it makes good business sense. We have used Paragon for more than a decade for routing and scheduling optimization throughout our business, and the longevity of this relationship is a real testament to Paragon as a reliable solution and the professionalism of the people behind it. Using Paragon for the strategic analysis of our transportation operations is playing an important role in Tesco’s Sustainable Distribution strategy – a key initiative for us as an organization.” Alex Laffey, Transport Operations Director, Tesco