This leading manufacturer had over 30% of the UK retail Snack Foods market, and ongoing growth of over 10% per annum. SCALA was asked to benchmark the efficiency and costs of the current logistics provider, and to review capacity for future growth.
SCALA undertook a review of the current costs and service for:
- - Primary Transport from the factories to the warehouses
- - Warehousing, Stock Management, and Order Assembly
- - Customer Delivery
The current charges for warehousing were significantly higher than our benchmark comparators. We recommended revising the contract arrangements and then carrying out an Invitation to Tender (ITT).
SCALA wrote and managed the ITT process down to a short-list of four bidders for the Client to undertake site visits. Further comparisons on cost and service options were evaluated and presented to the Client, recommending the final 2 providers, and setting up presentations and cost reviews through to final selection
Cost reductions and service improvements were achieved including:
- 18% costs reduction during the first year
- Customer service improved from 95% to 98% with tighter KPIs
- Introduction of Continuous Improvement Programme with Shared Benefits
- Improved factory clearance
