Paul Smiddy, retail analyst at INVESTMENT bank RW Baird, says: "Instead of a step-by-step approach, Sainsbury's went for a sort of big bang and found out that it was worse off than before it introduced the new system.
Once delivered to the automated warehouses, goods are placed on a conveyor system, which includes a high-speed cross-belt sorter, 2.25 miles of belt conveyor and 25 automated In an echo of Kmart, where mega-distribution centres could not keep stores fully stocked, Sainsbury's four large distribution centres have not been up to fully supplying the retail outlets. As a consequence, an old depot scheduled to close has been reprieved and an already-closed facility at Buntingford, Hertfordshire, is to re-open.
Super-sophisticated supply chains can save companies millions of pounds, but if they go wrong they can also mess things up spectacularly.
An intense emphasis on technology is seen as a recurrent problem in retailing, particularly when it comes to supermarkets. Self-scanning, intelligent trolleys and customer relationship programmes have all been used by stores but all come well down the list of consumer wants.