“A coffee with…” Francisco Cano Rueda - Diretor Supply Chain, Parfois

Empack and Logistics & Automation Porto:

Tell us, what is the last mile strategy at Parfois? What is your day-to-day life like in the company?

Francisco Cano Rueda:

The strategy consists of two strands, the first: the points of sale, the second: our customers; both strands are based on the principle of omni-channel promotion and are based on two main pillars: people (teams) and technology. The philosophy behind the last mile is the optimisation, synergy and availability of the current network with our shops in the centre as a “Relay”, with a customer-oriented service, extending this network with convenience points, lockers, flexible home delivery options and simplicity in the return process. Technology gives us the opportunity to put the focus on the customer, their 360° experience, and helps us achieve efficiencies through volume critical mass synergies. The teams focus on service level, control and strategy execution. My day-to-day is very much focused on the business and its needs, the teams, the service level, efficiency and the technological development of tools that allow us scalability, visibility and control of operations.

E.L.Porto:

How has last mile logistics evolved within the company? What is Parfois’ strategy?

FCR:

Last mile logistics is constantly evolving, whether driven by volume of operations, customer needs, commercial needs, or qualitative leaps in technology. In our particular case, we have evolved from a shop supply model with couriers to a store-centric and efficiency-driven distribution model, with direct injections to centres and dedicated specialised delivery operators covering the last mile. In terms of last mile customers, evolution has been based on customer dispersion, synergy with the available shop network and new niche transport operators focusing on convenience, digitalisation, visibility and/or flexibility in deliveries. Our strategy: to evolve our Estafeta shops into an active part of the omni-channel experience, taking advantage of their excellent location, their potential level of service, their immediate reactivity, and optimising the product assortment to demand and stock levels.

E.L.Porto:

In terms of sustainability, where is Parfois’ focus at the moment? What measures are you implementing to incorporate this new and necessary trend within the company?

FCR:

The company is transversally focused on this point, it is aware of the scope of this project, which involves a long-term strategy and a philosophy of continuous improvement that, in turn, involves small daily actions that change our daily lives. As for the specific measures adopted in the supply chain, there are three pillars: one; recycled materials and reuse of packaging (at this point we are currently at levels above 60%, the rest is 100% recycled), two; energy efficiency in the network (reduction and types of energy consumed), three; control and measurement audits to analyse points of improvement and evolution.

E.L.Porto:

Imagine if you had to implement immediate improvements in a company in terms of supply chain and last mile management, what would they be?

FCR:

When dealing with a new project in a company, I consider it essential to dedicate time to a first diagnostic phase, to understand the current, historical and future context of certain situations that derive in business, partners, ongoing projects, suppliers, models, teams, etc. From there, a roadmap would be drawn up with a clear strategy, timelines, teams, technology, projects and resources. What I can share with you is what I would focus on in terms of supply chain and last mile: one; management teams able to follow the strategy, two; a technology platform that systematically integrates the network of stakeholders in the product supply process (i.e. procurement, design, quality and manufacturing management teams, manufacturing suppliers, freight forwarders, shippers, distribution teams, etc.) with a powerful monitoring control tower team. Three; a flexible, efficient and scalable distribution centre structure with robust management systems. Four; a structure of suppliers and physical distribution partners with long-term commitments, capacity, niche specialists and accompanying project needs.

E.L.Porto:

Importing and exporting is like eating in the globalised world we live in, how does the logistics strategy adapt in each country? Could you tell us something interesting about Parfois’ approach to this subject?

FCR:

The approach is very simple and pragmatic, there is a clear objective to understand with the local agents, who frankly are the ones with the knowledge and experience, how the chain operations work in that specific country and why. We travel to the country, visit agent facilities, ports, airports, distribution centres, institutions and customs (if there are controls) that have been previously identified and go through the circuit that our products would potentially pass through. I am well aware that it means an investment of time, effort and resources, but certainly in my experience it works with a high degree of success. It is honestly difficult to understand certain situations, operations, approaches and behaviours without knowing at a high level what is normal and what is not normal in certain countries at the supply chain level.

E.L.Porto:

Is there anything we have left out that you find interesting in the professional field of the logistics sector? For example, what trends do you see in the sector, what do you think about a current topic, a project you are working on, or a topic you would like to contribute your part to.

FCR:

In terms of sector trends, we are very focused here on the evolution of omni-channel technology: the applications that are emerging to track all after-sales processes and centralised product distribution with a single inventory. The digitalisation of logistics ecosystems by integrating warehouse management systems, stocks, operational transactions, last-mile operators and full traceability to achieve high-quality customer service. At the same time, we are attentive to all the advances in intralogistics automation that can help improve the ergonomics and quality of the daily work carried out by the teams and, in turn, allow us to gain operational flexibility and reactivity in sales.