Major UK Canned Goods Manufacturer

    logistics procurement

    Our client for this case study is a leading branded manufacturer in UK, importing primarily canned goods into its distribution centre near the port of Felixstowe in order to service all of its UK and Irish customers.

    As such they required a full review of logistics procurement, warehousing and transport benchmarking in order to improve their performance.

    Requirements

    In order to deliver sustainable benefits we worked with their existing providers and framework to cover the following four key points:

    • Assess the competitiveness of the warehouse and transport solution vs market rates to inform whether to tender or renew
    • Develop a cost model to mirror the activity from port to customer to identify any opportunities to improve operational effectiveness  and a transparent costing mechanism aligned to the activities
    • Establish a competitive RFQ tender process to identify potential strategic partners and alternative solutions, to be launched if the incumbent was unable to deliver a market-competitive solution.
    • Collaboration with the incumbent provider in order to identify a number of critical aspects of the operation that needed addressing for improved service, reliability and cost-effectiveness of the solution.  This would then allow a revision of service standards and expectations in line with the clients’ customer requirements.

    Benefits

    Sustainable Improvement

    By moving to a fully transparent costing mechanism, linked to activity, we enabled further opportunities for continuous improvement to be identified and clearer service standards embedded in the Service Level Agreement.

    Procurement & Cost Reductions

    Simply Supply Chain helped secure a contract renewal for the incumbent provider, as a result of a revised operating model and layout. This delivered a 10% cost reduction for transport and warehousing saving for the client within 2 months.

    Contact Us

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    E:  info@simply-sc.com

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