contract-logisticsContract Logistics 


The Background

In light of one of the 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. 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 UK, provision of warehousing solution and nationwide distribution, whilst delivering a commercial saving.

Simplify the current complex supply chain and deliver commercial and operation saving.

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

 

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The Approach

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

In all nine alternative scenarios were developed around current facilities and new facilities.

 

The Results

In the final analysis, it was decided a single consolidation site located in Tughlakabad, India and a single UK warehouse located in Ipswich provided the greatest commercial saving, whilst delivering flexibility and performance to 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 WMS with dual access has enabled the client to maximise drop size and consolidate smaller individual SKU orders, whilst providing an evironmentally friendly reduction to the number of road miles and journeys.

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

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