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SCALA CASE STUDY

Logistics Network Strategy & ITT

Leading Global Hair Care Branded Supplier

Background & Brief

This leading UK supplier of branded hair care products sold on a global basis with more than 80% exported across multiple markets. The client operated it’s own warehouse with transport operations outsourced including
  • Supplying the export markets, UK retailers (Bricks & Mortar and B2C) and also direct to consumer
  • Primary Transport – Factory to DC and customer delivery Having experienced very significant growth which was forecasted to continue the clients warehouse was at capacity and could not accommodate future volumes. A previous SCALA project had identified the current transport operations were expensive and that there were opportunities to deliver cost efficiencies and support future growth by outsourcing and optimising the total UK logistics operations. The purpose of the project was to identify the optimal outsourcing arrangement for the client and manage the ITT through to selection, appointment and Heads of Terms.

    • Project Approach

  • Working closely with the client an ITT document was created that described the requirements and set out core processes and contractual arrangements.
  • A two step approach was taken with an initial RFI issued to 12 potential suppliers, this was then reduced to 5 suppliers receiving a RFP.
  • SCALA managed the whole ITT process including full due diligence with the suppliers including site visits and references and used an evaluation matrix to identify the best placed solution.
  • Throughout the process SCALA provided ongoing guidance as to how to structure the future contract including service levels, contract length and commercial structures.
  • The full ITT project was completed within 13 weeks.

    • Benefits & Results

    The recommended solution enabled the client to move to a logistics network that enabled capacity for future growth and reduced its UK warehousing and transport by 33%.
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