Direct Line Supplies

Direct Line Supplies (DLS) Limited have been sourcing and supplying popular produce to the UK food industry since 1988. They work with over 300 suppliers and provide more than 1,200 products, including some of the world's leading food and catering brands like Coca-Cola, McCain, Heinz, Pepsi, Amoy and Nestlé

Challenge

DLS had an ambitious growth strategy to double turnover within 5-10 years. However, they acknowledged their current operational systems would be a barrier to scale up and use automation to improve efficiencies. Many processes were manually delivered – from eCommerce and sales, through to purchasing, stock control and logistics. DLS were also conscious of an over reliance on tacit knowledge, especially within purchasing, which often led to products sourced at non-optimum price with no delivery structures. There were also opportunities to enhance sales through product recommendations and upselling, but a lack of data on seasonal offers and historical customer buying trends was preventing this.

Holistic digitisation of all DLS’s operational and decision-making processes through the application of an AI (artificial Intelligence) and data science framework to create a digital twin. This will enable evidence-based intelligence and enhanced management decision making across all functions.

Solution

DLS Managing Director, Pedram Salahshouri, recognised that to achieve their growth aspirations they would need to completely automate their business processes. Subsequently, they embarked on a digital transformation journey with our support and expertise in AI, digital twin technologies, and change management. A Knowledge Transfer Partnership (KTP)* was identified as a fantastic vehicle to embed this expertise into the business, by developing an AI-enabled decision support system. Pedram’s vision was to create an ‘Amazon-like’ distribution environment.

Impact

The KTP has developed and implemented a fully automated and modular decision support system (ADA). This is not the reality within the small-scale distribution sector and usually only available to global players. DLS have a longer-term ambition to exploit and commercialise ADA to other businesses like themselves, creating a ‘tech division’ to the business model.

The digital transformation has positively impacted DLS by creating capacity, eliminating human errors, optimising operational efficiencies and enhancing customer interactions. As a result, DLS has increased its market share and attracted new customers. They have also benefitted from enhanced engagement and motivation levels from staff.

Key outputs include:
• online ordering platform
• WhatsApp functionality for live customer communication
• digitising cash movement, payroll and financial departments
• machine learning models for customer product recommendations
• AI and VR enabled solution for vehicle loading
• AI procurement module for automated supplier contracting
• intelligent logistics route planner with live KPI measuring tools
• integration of advanced language models like ChatGPT, supporting customers and providing immediate tailored responses to their inquiries.

*Innovate UK Knowledge Transfer Partnerships (KTPs) aim to help business improve their competitiveness and productivity through the better use of knowledge, technology and skills within the UK knowledge base. This KTP project was co-funded by UKRI through Innovate UK.

Email ktp@tees.ac.uk for further information.