All Hands to the Pump for 3PL
Our client specialises in Drainage Systems Online. Incorporating over 50 years in the business, our client offers a wealth of experience within the waterproofing and drainage industry.
- In excess of 250 SKUs
- In excess of 200 pallet storage
- Average of 100 orders per month
During initial enquiry stage our client was already outsourcing its Supply Chain operations to an alternate Logistics provider based in North West England. The decision to relocate the storage, order fulfilment and delivery services were largely due to sub-standard performance by the previous provider in a number of key areas:
Due to a lack of product awareness by the previous provider the client themselves would pick the order, hence they were unable to focus upon their core activities.
Ever increasing storage space and resulting cost per sq ft meant little incentive to reduce storage space consumed.
Turnaround of inbound was largely protracted resulting in elongated order lead times. Product availability is therefore affected.
Goods were often hard to locate due to a lack of identification and traceability. Picking efficiencies become questionable.
Overall service to end customer wasn’t in line with the clients expectations due to the lack of time.
Closing the gap
3PL set about applying its standard operating disciplines and were able to present a solution that would both stabilise the operation whilst providing a sound platform for continuous improvement.
Phase 1 – Stabilise
Following a detailed integration plan aimed at achieving a seamless transfer of stock, more than 200 pallets were received at various intervals ensuring that all non value adding stock was consolidated onto as few pallets as possible. A full stock take was undertaken on entry and the opening balance presented to the client for sign off. In carefully selecting the inventory to move on each load, orders were able to be fulfilled throughout the transitional phase.
Having already visited the former warehouse in advance of integration 3PL was able to gauge and allocate the amount and type of storage space required. With the aim of condensing the account into the least amount of space the use of shelving, racked and bulk storage was applied as appropriate.
Phase 2 – Growth
On completion of integration and first order outbound:
- Inbound compliance – apply bar code labels to improve product identification, re-name certain SKUs to ensure a unique ID
- Order fulfilment – Day 1 for 2 processing on all orders (up to 1 pm cut for same day picking)
- Customer care – a dedicated contact was allocated to ensure timely responses to queries.
- Management information – SKU analysis, tracking id, end of business reporting and monthly service report
- Distribution – Trialing of various services to suit including 3PL dedicated vehicles
Next phase: Back order management, contact centre support, trade counter, fixed cost storage, European fulfilment and deliveries, freight Management
A present day review of the account will see it occupying less space, more organised and with a competitive edge on service. Our client is now well equipped to increase its market share and have the assurance of a sound supply chain behind them.
Enhance the Business
Client is able to focus upon the core elements – rebranding and web development
Client re-position itself to facilitate increased sales.