This leading retailer was supported by two logistics providers, each operating a number of 'full product range' DCs. Business changes had led to differing requirements in terms of strategy, service levels, stockholding policy, product range etc., and there was an overall need for operational improvement. SCALA was appointed to assess the overall efficiency and structure, and make comparisons between the providers and sector 'Best Practice'.
Initially SCALA worked with the client and two providers to establish clear understanding of the supply chain structure, methodologies and issues. Following presentation of initial views two DCs were identified for a detailed operational audit covering:
- - Product receipt, storage and despatch
- - Layouts and equipment
- - Manning levels
- - Performance monitoring and recording
- - Management structure and effectiveness
The audit enabled comparisons between the two DCs, and with SCALA data on performance at similar operations.
Finally the process supported a high level assessment of the overall supply structure and effectiveness.
The review identified potential operational savings of around £1.2m through:
- Providing numerical comparisons of throughput, labour levels and allocation,
efficiency, handling methodologies and capacities
- Comparing added value provided by both providers, and their attitudes to change
and operational improvement
- 14 potential operational changes across the two DCs, and four broad areas
of the supply strategy which justified review.
