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SCALA CASE STUDY

Transport Operations and Strategy Review

Global Equipment Pooling Business

Background & Brief

The client, a world leading Equipment Pooling Business, engaged SCALA initially to carry out a review of its Transport operations within its UK and Ireland Supply Chain. The client had seen rapidly rising transport costs due to changes of traffic flows within its own supply chain combined with significant changes within the UK transport sector as a result of driver shortage and other inflationary cost pressures. The client’s transport operating model was based on a number of regional haulier partners supplemented by an increasing use of spot hire hauliers. SCALA were then engaged to undertake a strategic review of the client’s transport operations and strategy in order to ensure the client is best placed to address short and long-term service and cost challenges.

Project Approach

  • Gain understanding of current business
  • Visit Supply Chain centres to understand current processes; Data collections and analysis
  • Assessment of the transport operations and network and identification of key opportunities for improvement.
  • Meeting with long standing key haulier partners
  • Modelling and evaluation of alternative solutions and flows
  • Short term urgent advice and recommendations to address Q4 capacity, cost and service concerns
  • Recommendations for transport strategy – fully assessed optimisation opportunities
  • Produce detailed report containing conclusions and recommendations

    • Benefits & Results

    Working closely with the client SCALA produced a list of short-term recommendations to reduce use of spot hire haulage and increase transport availability for the key Q4 period. This was achieved through increasing rates tactically with key suppliers linked with acceptance of increased volumes thereby reducing use of spot haulage. SCALA also identified areas of focus for the client to address which were perceived by transport providers as barriers of working with the client. SCALA also identified an activity requiring focus which would significantly reduce the volume of loads being spot hired. The key immediate results were that the client achieved Q4 activity with enhanced customer service and Transport gross and unit costs improved by 10%, projected to deliver a £6m annual benefit.

    Final Outcome

    SCALA have been re-engaged by the client to further develop Transport strategy but also take a broader view of the client’s Supply Chain network and structure. The review includes developments in cross functional KPIs and creation of balance scorecard, a review of processes and systems and a review of service centre structures and processes.
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