Delivering profitability

As well as stimulating growth through improvements to the proposition to customers, we invest in our infrastructure to service this growth, and continually seek to drive efficiency throughout the delivery cycle.

Drivers Key Initiatives
Optimising operations Inside our CFCs we invest in, and deploy, technology and automation to drive the overall efficiency of our business. We have been developing CFC1 over its lifetime, and deploying the "best of breed" equipment and systems in CFC2. We work in partnership with hardware equipment manufacturers to develop to our designs the equipment suitable for application in our fulfilment operations.
Critical to our operation is the software that controls it. This software is largely developed in-house by a highly skilled team, and cannot be bought "off the shelf" on the open market. The in-house nature of our software development allows for rapid solution development as efficiency improvement opportunities are identified. Naturally this proprietary technology protects our business model and makes it difficult to replicate.
Building capacity and leveraging scale CFC1
This is our original CFC, and during the period our single fulfilment centre in which all customer orders were processed. A series of improvements were implemented during 2012 which have enhanced both capacity and efficiency in CFC1. Notably some additional material handling equipment started operations and all remaining manual trolley picking operations were removed from the chilled and ambient areas. Current peak capacity is running at nearly 150,000 orders per week.
This is our new fulfilment centre in Dordon, Warwickshire. We have utilised the many years of learning from CFC1 to create a state-of-the-art facility. At full capacity CFC2 will be the largest single grocery store in the world (replacing CFC1 for that title). We delivered our first order from CFC2 on24 February 2013, and CFC2 will gradually ramp up to an initial capacity of at least 120,000 orders per week. Further investment in CFC2 would increase capacity to over 180,000 orders per week.
Non-food and spokes
We constantly plan for growth and invest in appropriate fulfilment assets, such as for our fast growing non-food business, and delivery spokes.
Leveraging scale
Expanding the scale of our business will enable us to improve our gross margins and work more closely with suppliers, as well as improve the efficiency of our delivery operations and allocate administration and fixed costs more efficiently.