Contract Logistics Case Study

With several contracts approaching review and the end of lease agreements at three storage sites, our client took the decision and opportunity to review warehousing and distribution strategy within the UK.

Contract Logistics Case Study
Contract Logistics Case Study

THE BACKGROUND

At an early stage, the client turned to KC Group Shipping to undertake a thorough and independent assessment of their complete supply chain requirements.

THE CHALLENGE

The key challenge encountered by KC Group Shipping consultants in partnership with our client was to devise, implement and deliver a complete supply chain solution encompassing collection of 112 product SKU's from their Indian supplier, consolidation of cargo, dispatch via deep-sea ocean freight to the UK. Plus, the provision of warehousing solutions and nationwide distribution whilst delivering a commercial saving.

Our remit was to simplify the current complex supply chain and deliver commercial and operational savings.

Implementation was a substantial factor in this challenge. Given the continuous flow of products from numerous Indian suppliers to the UK, our consultants faced daily obstacles in ensuring no interruption to the current supply chain.

THE APPROACH

KC Group Shipping consultants began to analyse traffic flows and SKU streams to establish alternative storage solutions with nationwide distribution. A vital element of the assessment model was the analysis of warehousing and distribution costs, including RH&D flows. We placed particular emphasis on consolidating individual suppliers, as a large volume of products were shipped to the UK by Less-than-container service (LCL).

We developed a series of nine alternative scenarios around the current facilities and several new facilities to provide the most comprehensive overall solution.

THE RESULTS

After a complete analysis, it was decided that a single consolidation site located in Tughlakabad, India and a single UK warehouse located in Ipswich provided the most significant commercial saving whilst delivering flexibility and performance key retailers in the UK. Our client was confident that the proposal would provide increased customer service levels and reduce product mis-picks.

A bespoke warehouse management system with dual access has enabled the client to maximise drop size and consolidate smaller individual SKU orders whilst providing a reduction in carbon footprint by reducing the number of road miles and journeys.

Our recommendation has reduced the overall cost of product distribution from the supplier's premises to the end-user. The process has enabled the company to combine its business stream and product supply chains to create greater flexibility.

    CONTRACT LOGISTICS.