SCALA CASE STUDY

Supply Chain Design and New Logistics Network ITT Management

‘Top 6’ UK Retailer

Background & Brief

The client was actively seeking significant wholesale supply arrangements in the retail convenience sector in order to rapidly develop its scale of operation in the UK Convenience market. This represented a new business and supply chain model and in addition their own logistics network was at a very high level of utilisation. SCALA’s brief was to advise on the optimal supply chain model particularly given that the business wanted to act with pace and to subsequently conduct an ITT and identify the optimal 3rd party logistics solution to support the new business. SCALA were requested to complete this within 13 weeks.

Project Approach

  • Present to the client a variety of Supply Chain models and work with the client to identify the optimal model.
  • Creation of a robust ITT document for the entire logistics network to support the new business - working closely with the client as this was for a business that had limited data available.
  • End to end management of the ITT process - identify suitable suppliers, working with them to ensure correct understanding of the operation & ITT, evaluating the ITT responses.
  • Providing an assessment of the ITT responses and a recommendation as to the optimal solution and future partner.
  • A recommended implementation plan.
  • Benefits & Results

  • Identification and appointment of the logistics solution and partner to support the new wholesale supply arrangement to enable a new wholesale supply arrangement to more than 2000 convenience stores
  • Identification of a solution and cost to serve within 13 weeks enabling the commercial negotiation of the wholesale supply arrangement
  • A clear implementation timescale to enable the new arrangement to be in place within months.
  • Final Outcome

    Based on SCALA recommendation, the client appointed the recommended solution and supplier. The identification of the solution and the pace at which the project was completed enabled the client to secure the wholesale supply agreement and to the aggressive timescales which they desired.
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