Background
This
operating division of a major US based manufacturer was
seeking to outsource all its global logistics. Additionally
it was seeking to subcontract the component assembly to
a third party. Components were imported from a number
of destinations in the Far East, Europe and N. America.
Assembly was undertaken in a single UK plant and finished
product exported throughout Europe in varying drop sizes.
A decision had been made to sell the UK plant and thus
it was necessary to implement an agreed solution rapidly.
We were asked to lead the project to identify possible
logistics partners, draw up an invitation to tender, analyse
responses and recommend the correct choice of partner.
Additionally it was necessary to seek a company who could
provide both a global logistics solution and the assembly
operations.
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Activities
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A detailed analysis of the present supply chain and
component assembly operations was undertaken. Detailed
costings were established. A five year forecast of sales
and geographic growth assumptions were factored in.
A comprehensive Invitation to Tender was sent to a number
of pre-selected companies, responses were obtained and
the successful company chosen.
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Outputs
·
Final contract negotiations were completed
· A new assembly and distribution centre was established
in the Netherlands, with a satellite warehouse in the
UK.
· A professional logistics partner has been found,
enabling Generac to concentrate on its core competencies |
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Results
·
Transport costs have been substantially reduced, particularly
in the area of component shipping
· Assembly productivity has grown and costs per
unit fallen
· As the operation developed, Generac felt confident
enough to allow the Logistics Service Provider to manage
component ordering and negotiate directly with the suppliers
· Customer service has improved
· Generac has reduced overhead costs and now concentrates
on R&D and commercial activities |
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