SCALA CASE STUDY
Benchmarking 3PL Contract
Manufacturer of Home Appliances
Background & Brief
The client import products from the Far East 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 his charges may be uncompetitive. Contract was open-book. The client requested that SCALA carry out a warehousing benchmark
Project Approach
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 nearly all warehousing costs were in line with similar businesses however a number of areas for potential increases in efficiency were identified e.g. utilisation of racking, cost of consumables, optimisation of ecom operation and improved management of the returns process
Final Outcome
The project identified that nearly all activities were charged cost effectively however a number of areas of potential process improvement gave the client opportunity for reducing cost