Background & Brief
The two companies were part of a major grocery group that had appointed SCALA to conduct a Logistics Synergy project. The agreed roadmap involved each company progressing towards the vision at their own pace in line with their own business strategies, contractual constraints, etc.
SCALA have continued to work with all the companies concerned both through the “Best Practice” Forum and by providing individual support as required.
SCALA have directly assisted two companies to fully revise their logistics operations including an initial joint logistics tendering process and then a detailed root and branch assessment of the Raw Materials, Packaging, UK Finished Goods and Export operations.
Benefits & Results
Short Term benefits were achieved by moving to a single principal contractor for both the warehousing and transport: In addition to providing a more unified approach, this has resulted in immediate cost saving benefits of around 6%.
Further benefits of 11% have been identified and agreed by the client to achieve in two years pending property contract/lease breakpoints.
These include improved arrangements and flows of goods to/from manufacturing, the building of a raw material/packaging store adjacent to manufacturing, and a focussed finished goods logistics operation
The changes have already enabled moves to synchronised customer ordering across both companies and the further changes also enable enhanced customer service offerings in reduced lead times and more frequent ordering.
SCALA are continuing to work with these companies on a managed service basis to implement the changes and realise the considerable business benefits, implementing strategies such as the root and branch approach.