Benchmarking 3PL Contract

Manufacturer of Home Décor Products

Background & Brief

The client import products from around the world and distribute across the UK to retailers and via ecom. The client was contracted to a Logistics Services Provider in a shared user facility but was concerned that he was being overcharged. In anticipation of issuing a tender for warehousing requirements in 2021 and beyond, the client requested that SCALA carry out a benchmark of warehousing and transportation

Project Approach

  • A warehousing operation
  • Distribution across the UK
  • Provision of IT
  • Benefits & Results

    SCALA produced a range of quantified comparisons looking at operational performance comparisons and cost comparisons for similar sized businesses. In summary, it was identified that all warehousing and transportation activities were in line with similar businesses however the charge for IT was extremely high especially as the system still required significant administrative effort by the client

    Final Outcome

    The project identified areas where systems improvements could be achieved and cost comparisons indicated the potential for savings. The client approached the LSP to examine how move forward but were unimpressed with the response and therefore appointed SCALA to carry out a full tender
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