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

  • Review of basic throughput and activity data
  • Review of contract detail
  • Review of costs as contracted
  • Review of costs as charged
  • Benchmark against SCALA databank and industry knowledge
  • Recommendation regarding next stages
  • 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
    Scroll to Top