Drinks Logistics Case Study

A leading UK drinks cash and carry, and a potential new client approached KC Group Shipping following a recommendation from a global brewing company.

Drinks Logistics Case Study
Drinks Logistics Case Study

THE BACKGROUND

The drinks cash and carry wanted to expand into the European mainland and wanted our help to establish a market position in the Netherlands.

THE CHALLENGE

The initial challenge encountered by the exporter was the availability of suitable trucks and trailers to transport the high-value product underwritten by an HM Customs Duty Bond. The KC logistics consultants immediately met with the exporter to review their current supply chain process and ascertain which areas were productive and which could be realigned.

To create a responsive supply chain solution, there were several critical areas for us to review, these included:

  • A dedicated HM Customs & Excise Duty Bond with a guarantee exceeding several hundred thousand pounds sterling would be required to facilitate the movement of duty-suspended alcoholic beverages from the UK to mainland Europe.
  • The allocation of suitable Tautliner trailers and guaranteed daily volume of equipment source partners and service providers via our unique "perfect fit program", with flexibility being a crucial point.
  • It would be imperative that allocated pick-up times with next day assigned delivery times were strictly adhered to, covering volumes exceeding 10-15 units per day.

THE APPROACH

It was immediately apparent the HM Customs & Excise Duty Bond was the first challenge to be addressed. KC Group Shipping contacted HMRC to commence processes and procedures and establish a Movement Guarantee on this specific business.

After several meetings with HMRC and KC Group Shipping, we provided the required financial guarantees and exceeded the exhaustive HMRC approval criteria. We secured the Guarantee, which enabled us to concentrate on designing the actual supply chain process.

Following further meetings with the client, KC Consultants established methods to plan the best way forward for this business. After we had a complete overview of the client's requirements, we initiated steps to develop suitable partners who could provide guaranteed equipment availability, potentially eight to ten journeys per day to The Netherlands.

They would also have to guarantee that trailers arrived at the loading point on time whilst meeting the allocated "book in" slots at the delivery points. This process was straightforward enough, as our established partnerships with our trailer operators would provide immediate access to an extensive network.

THE RESULTS

We presented the client with a complete proposal delivering the required volume of trailers, with a backup plan providing access to additional equipment during peak seasonal periods.

After agreement and initiation of contracts, we allocated a dedicated account manager and a team of highly experienced operators to manage this business which exceeded the client's expectations from the outset. KC Group Shipping is now developing a strong partnership with the client and delivering a KPI success rate of over 98%.

    DRINKS LOGISTICS.