Case Study: Co-op Food achieves multi‑million‑pound distribution cost savings with Körber AG's K.Sight COST2SERV

Co-op plan future supply chain network with trusted solution

Co-op Food, the sixth largest food retailer in the UK and part of The Co-operative Group, needed to visualise its combined supply chain after acquiring Nisa Retail, build baseline models to compare network strategies, and reduce distribution costs. They engaged Körber AG and adopted Körber’s K.Sight COST2SERV and K.Sight CLASS solutions to model the merged network and run “what‑if” scenarios.

Körber AG merged Co-op and Nisa data, calibrated cost and throughput, and used K.Sight COST2SERV to automatically allocate stores to optimal distribution centres while respecting capacities, optimise picking and cross‑docking, and minimise total cost‑to‑serve; K.Sight CLASS provided warehouse capacity inputs. The work validated network designs, identified the most profitable distribution strategies and resilience improvements, and revealed relative savings with Co-op expecting multi‑million‑pound reductions in distribution costs and improved margins.

Co-op Food

Graeme Evered

Logistics Strategy and Implementation