- Warehouse Review and Operational Benchmarking
- Strategic and Operational Review
- Outsourcing ITT Management
- Transport and Warehouse Review
- Cost to Serve Assessment
- Infrastructure Evaluation
- Supply Chain Transformation
- Organisational Strategy
- Customer Service Organisation
- Transport Efficiency - KPIs
- Transport Collaboration
- Service Development Assessment
- Supply Chain Benchmarking
- Logistics Contract Assessment
- Strategic Review and Operational Implementation
- Strategic Network Evaluation
- New Warehouse Design
- Network Optimisation
- Operations Improvement
- Supply Chain Best Practice Forum
This Consumer Goods giant has a market share of 40% across Europe. As a successful and acquisitive business, the manufacturing, and the supply chain requirements for the business, have become very diverse. With the renewal of the major Warehousing and Distribution Contract pending, the company wanted to compare the Costs and Service Levels against 'Best in Class'.
The SCALA team undertook a detailed review of the existing and proposed Contracts from the supplier. Recommendations included:
- - The 'Centre of Gravity' was reasonably balanced for inbound & outbound traffic
- - Customer Service levels and stock control were not 'best in class' for brand leaders
- - Cost per pallet distribution was only average and significant opportunities were identified
- - Improvement in future drop-size and consolidation should be negotiated in contract
The review resulted in a substantial improvements being negotiated with the Third-Party supplier covering management, operational, and costs. Specific benefits were:
- A reduction in immediate costs of £0.5m increasing in future years to £1.7m
- Improved Contract terms focussing on qualitative improvements in Customer Services
- An improved relationship between the Client and Third-Party supplier
- An improved 'KPI Reward Scheme' for both parties to share benefits achieved