This engineering PLC had manufacturing plants situated at several sites throughout the UK.  The logistics side of the business was based at a central warehousing and distribution facility which also housed the management and administration teams.

 

Three satellite units supplemented the main "picking" warehouse for the group; unfortunately, they were hundreds of miles apart!  In addition to the running costs associated with the warehouses, several other problems had emerged:

 

• Stock had to be transported between the various sites 

• Products held in storage were often duplicated, leading to over-stocking 

• The operation was difficult to manage effectively, mainly due to the geographical constraints

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We were asked to recommend a practical course of action that would lead to lower operating costs.  

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Our solution centred on consolidating onto one logistics site, consisting of a main warehouse and a back-up store to handle seasonal products.  We also devised a complete working layout and a series of standard operating procedures to accompany the changed conditions.  

 

As a result of the project, two of the warehouses were closed and staff were re-located within the group.  Stock was also greatly reduced and the new layout at the central warehouse led to more efficient picking and despatch.

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LOGISTICS DIRECTOR - "We could never have achieved that result with our in-house people, we had become too close to the issues."