Logistics and Supply Chain Strategy

Airport Logistics: Crew Terminal Analysis

Sector	Aviation
Product Type(s)	Crew Terminal
Project Type	Feasibility Review
Scale of Business	£5bn
Key Task 1	Source data for crews per aircraft per airline Source data for aircraft landings and departures Source airline requirements
Key Task 2	Develop data and mathematical queuing models Apply DfT and BAA security requirements
Key Task 3	Run model and design prototype terminal
Key Task 4	Build business case
Results	Business case for BAA Board

Retailing: 10 Year Logistics Strategy

Sector	Retailing
Products	Grocer
Project Type	10 year Logistics Strategy
Scale of Business	£3.6bn; 300 stores
Key Task 1	Review current operations (capacity/productivity)
Key Task 2	Analyse future store growth plans and implications for logistics and model future inventory levels
Key Task 3	Analyse transport planning and operations to determine best fit for depot locations
Key Task 4	Develop a strategic and tactical development plan to meet future logistics development needs of the business
Results	Created a new logistics strategy which saved capital and minimised operating costs whilst provided the capacity and flexibility to deal with future growth plans

Retailing: Future Warehousing Strategy

Sector	Retailing
Product Type(s)	Clothing
Project Type	Future warehousing strategy
Scale of Business	£350m sales; 70,000 SKUs
Key Task 1	Analyse current operations and determine strengths and weaknesses
Key Task 2	Re-design layouts to improve capacity and performance
Key Task 3	Develop future design options for long term warehousing requirements taking account of development plans and centres of business gravity
Key Task 4	Create new warehouse operational designs to maximize productivity
Results	Identified opportunities to improve productivity by 32% and capacity of existing facilities by 18%; New operations reduceman power requirements by 16% and are currently being planned for implementation

 

Global/European Supply Chains

Retailing: Imports Supply Chain Review

Sector	Retailing
Product Type(s)	DIY products
Project Type	Imports Supply Chain Review
Scale of Business	£300m sales; 25,000 TEUs
Key Task 1	Prepare a review of systems, processes and costs along the supply chain and identify priority areas for action
Key Task 2	Develop inventory analysis model to determine target stock requirements at each node along the supply chain
Key Task 3	Build a cost-to-serve model for the Import Supply Chain and calculate the cost impact on the Far East and the UK of different supply chain options
Key Task 4	Establish a framework for future development priorities and an implementation plan and recommendations
	Identified £4m operating cost savings, £20m working capital reduction and provided a practical implementation plan

Manufacturing: Global shipping strategy

Sector	Manufacturing
Product	Beverages
Project Type	Reviewing cost/efficiency of current operations
Scale of Business	£12m logistics spend
Key Task 1	Create a cost to serve model to quantify existing operations
Key Task 2	Prepare an Invitation to Tender covering inbound shipping,warehousing and onward distribution
Key Task 3	Negotiate with suppliers to change and standardise buying terms
Key Task 4	Lead the selection process of shipping and logistics suppliers
Key Task 5	Assist in implementation including establishing Performance Measurement
Results	Significant cost savings and full visibility and transparency of product and information flows.

Manufacturing: Rationalisation of Distribution Operations

Sector	Manufacturing
Product	Carpet accessories
Project Type	Logistics strategy
Scale of Business	£120m sales; 4 plants; 25,000 delivery locations
Key Task 1	Establish target stock levels for production and finished goods inventory
Key Task 2	Capacity analysis of warehousing and new operational design for a central warehouse operation
Key Task 3	Develop new cross-dock model for distribution and reorganise transport planning and operations
Key Task 4	Develop implementation plan
Results	£3m cost savings; £2m inventory reduction

Pharma Supply Chains: Strategic Analysis of Options

Sector	Pharma
Product Type(s)	Ambient and Chilled products
Project Type	Strategic Review of Supply Chain Options
Scale of Business	£377m
Key Task 1	Analyse, map and review the current supply chain: volumes and costs Review for immediate opportunities for cost and service improvement
Key Task 2	Complete inventory review and inventory drivers: forecasting errors, MOQs, production frequency, etc. Calculate benchmark stock requirements
Key Task 3	Derive alternative options for warehousing and distribution with detailed cost analysis and discussion
Key Task 4	Research high level quotes for alternative transport routes and warehousing configurations benchmark against current costs
Results	A comprehensive analysis of current costs, a set of opportunities for immediate implementation and others for further analysis, market testing and then implementation

Cut Flower Supply Chains: Analysis of and Implementation of Practical Options

Sector	Wholesaling
Product Type(s)	Imported Flowers
Project Type	Performance Review to drive recommendations to improve speed and costs
Scale of Business	£150m
Key Task 1	Analyse, map and review the current supply chain: volumes and costs, handling methods and pinch points in the supply chain.Current performance and cost benchmarks were derived
Key Task 2	Investigated potential supply chain suppliers and discussed their solutions to the problems
Key Task 3	Established pilots to prove solutions
Key Task 4	Negotiated new contracts
Results	A comprehensive analysis of current costs, a set of proven opportunities for immediate implementation with considerable cost savings and a proven supplier with a new contract

Utilities: Supply Chain Market Research

Sector	Utilities
Product Type(s)	Maintenance Services, Spares and Capital Equipment
Project Type	Landscape Analysis of Suppliers to the Utilities Sector: Gas, Electricity, Rail, Nuclear Power
Scale of Business	£bn’s
Key Task 1	Agree scope and deliverables with client
Key Task 2	Internet Research of Current industry trade directories
Key Task 3	Build list of all suppliers (over agreed annual turnover):addresses, telephone numbers, email addresses, web-sites
Key Task 4	Build spreadsheet of all companies, check their public accounts for turnover, profitability, etc Add names of CEO, FD, Supply Chain Director Phone Head Office for confirmation of Supply Chain Directors name, email address and telephone number if given Map addresses
Results	Comprehensive Market Map of Suppliers and the main Utilities companies.

Utilities: Warehouse Management Systems Implementation

Sector	Utilities
Product Type(s)	Warehouse Management Systems
Project Type	To review the State Electricity’s warehouses and warehouse systems. Recommend strategy, specify system requirements,write and lead ITT process and help with implementation
Scale of Business	£bn’s
Key Task 1	Analyse, map and review the current procurement and warehousing processes with staff
Key Task 2	Map effective procurement and warehouse processes
Key Task 3	Build and agree system specifications, research market for suppliers, build OJEU tender, help with supplier choice and implementation process
Key Task 4	Build IT competencies amongst the staff
Results	Project was completed, the pilot proved but implementation was delayed

Warehousing Design, Systems and Operations

Retailing: Automated Warehouse Performance Audit

Sector	Retailing
Products	Spare parts
Project Type	Automated Warehouse Performance Audit
Scale of Business	£800m sales; 250 stores
Key Task 1	Review current automated warehouse and identify strengths and weaknesses
Key Task 2	Undertake audit of key operational and systems processes
Key Task 3	Assess whether the original design is fit for purpose and what strategic factors need to be considered in the future
Key Task 4	Develop a strategic and tactical development plan to meet current operational weaknesses
Results	Confirmed general effectiveness of existing design; Identified central weaknesses impacting on current operational performance; developed a plan for improvement which is being implemented.

Mail Order & Internet: Automated Warehousing & Project Management

Sector	Mail Order & Internet
Product type(s)	Clothing; Fashion; Accessories
Project Type	Project management – automated warehousing
Scale of Business	£900m sales; 120,000 SKUs;
Key Task 1	Develop operating and capital budgets
Key Task 2	Liaise with contractors and monitor performance
Key Task 3	Project manage implementation of high bay warehousing operation with multi-level automated crane system
Key Task 4	Develop interfaces between automated equipment and manual operations and troubleshoot issues as they arise
Results	Project delivered on time on budget

Manufacturing: Warehouse design and capacity planning

Sector	Manufacturing
Product	Consumer goods
Project Type	Warehouse design and capacity planning
Scale of Business	£500m sales; 27,000 pallet spaces
Key Task 1	Analyse current DC operational performance and methods
Key Task 2	Develop capacity planning model for warehousing versus company growth plans
Key Task 3	Design new factory warehouse (Narrow-aisle) taking into account environmental and site constraints
Key Task 4	Cost new options and provide a detailed implementation plan and on-going project management advice
Results	New DC built on time on budget

Manufacturing: Production Planning Strategy and Warehouse Design

Sector	Manufacturing
Product	Building Products
Project Type	Production Planning Strategy and Warehouse Design
Scale of Business	£75m sales
Key Task 1	Create Production Strategy for a move from Make to Order to Make to Stock
Key Task 2	Sales Analysis to produce Inventory Guidelines and methodology for Safety Stocks
Key Task 3	Design a Warehouse to hold the needed stock levels
Key Task 4	Train staff in methodologies
Key Task 5	Customer Market Research Survey on changes to product delivery: palletisation and order from stock
Results	Board invested in the necessary marketing, systems and warehousing to meet the new sales and production planning regime

Manufacturing: European transport strategy

Sector	Manufacturing
Product	Chilled Food
Project Type	To review the existing supply chain and make recommendations to reduce costs and improve customer service.
Scale of Business	One of Europe's largest suppliers of leaf salad to retailers with a turnover in excess of £12m
Key Task 1	Traced the product flows to end customer to identify any areas for concern and opportunities for improvement. We interviewed a number of customers and third party transport companies.
Key Task 2	Benchmarking on transport costs was undertaken.
Key Task 3	Assessed the product lifecycle from field to fork, with particular emphasis on product condition and waste.
Key Task 4	Investigated a number of possible packaging options.
Key Task 5	Assist in ITT preparation
Results	Moved the transport operation on to a more formal footing and established long term relationships with key suppliers resulting in improved service and cost savings

Manufacturing: Food Supply Chain Strategy Development and Implementation

Sector	Manufacturing
Product	Chilled Food
Project Type	Performance Review of current product manufacturing strategy,warehousing and transport networks strategy systems and organisation. Recommendations needed to be implemented
Scale of Business	£1.2bn
Key Task 1	Analyse, map and review the current raw material, manufacturing intermediates, manufacturing, warehousing, transport and customer distribution networks.Volumes and costs were mapped
Key Task 2	Models were built to reflect the current reality and form a benchmark for the options analysis
Key Task 3	Options were built, fully costed and analysed for changes to risks
Key Task 4	Operating cost and capital budgets were written for each option and recommendations made to the Board
Results	8% reduction in Capital, 25% reduction in distribution costs, 20% increase in customer service, 20% reduction in working capital

Demand & Inventory Management

Wholesaling: Pan-European logistics strategy

Sector	Wholesaling
Product	Spare parts
Project Type	Pan-European Logistics Strategy
Scale of Business	£420m sales; 200 locations; 9 countries; 150,000 SKUs
Key Task 1	Develop cost-to-serve model for comparative efficiency analysis between countries
Key Task 2	Develop future business operating model and customer service proposition with management
Key Task 3	Analyse economics of customer service proposition, stockholding locations and transport efficiencies
Key Task 4	Compare centralised stock versus decentralised stock modeland stocked versus bought-in
Results	Reduction in operating locations by 43%; £5m inventory savings; £2m logistics cost savings

Retailing: Buying Price analysis

Sector	Retailing
Products	Convenience Stores
Project Type	Buying Price Analysis
Scale of Business	£750m sales; 800 storess
Key Task 1	Develop model of buying prices by key product sector (netbuying prices; marketing spend; promotions; palletisationdiscounts; retro's etc.) for 3,200 Grocery lines
Key Task 2	Analyse cost differences between wholesale delivered prices and direct from supplier to central warehouse for compatibleproducts
Key Task 3	Establish savings estimates by product category
Key Task 4	Audit results on implementation
Results	Savings of £3.6m delivered

Retailing: Future Network Strategy

Sector	Retailing
Product Type(s)	Food (All temperatures)
Project Type	Future Network Strategy
Scale of Business	£400m sales; 10,000 SKUs
Key Task 1	Analyse current operations and determine strengths and weaknesses and current capacity constraints
Key Task 2	Model logistics implications of store growth plans
Key Task 3	Develop future design options for location of DCs and transport links and make recommendations on optimum solutions for different growth scenarios
Key Task 4	Design new generation chill and ambient warehouses to maximise productivity in high service level environment
Results	Identified the optimum locations and size of DC for the future network. New business plan and costings adopted for logistics operations.Warehouse design is due for implementation yielding a 25% improvement in productivity in a mature logistics operation..

Manufacturing/B2B: Inventory Review

Sector	B2B
Product Type(s)	Dentistry Products
Project Type	Inventory Review
Scale of Business	£80m sales; 7,500 SKUs
Key Task 1	Prepare a review of systems, forecasting and inventory planning processes and costs.
Key Task 2	Develop forecasting tools ands inventory analysis model to determine target stock requirements
Key Task 3	Test forecasting and inventory model particularly for slow moving lumpy sales SKUs
Key Task 4	Establish a framework for forecasting and inventory decisions making and an implementation plan and recommendations
Results	Simple monthly methodology identified 15% saving in working capital and provided a practical implementation plan

Airport Construction: Review of Construction Contracts

Sector	Aviation
Product Type(s)	Terminal Construction Contracts
Project Type	Peer governance review
Scale of Business	£5bn
Key Task 1	Review and understand procurement process
Key Task 2	Discuss tender process and role of pre-contract consultancy
Key Task 3	Analyse tender process and pricing changes Benchmark ‘best bid’
Key Task 4	Summarise findings
Results	Business case for BAA Board

IT in the Supply Chain

Building Products: Supply Chain Market Research

Sector	Building Products
Product Type(s)	Insulation Products
Project Type	Customer Service Review
Scale of Business	£75m
Key Task 1	Agree scope and deliverables with client
Key Task 2	Analysis of current service levels Build template questionnaire for customer interviews
Key Task 3	Build list of Customers by turnover: addresses, telephone numbers, email addresses, web-sites. Map addresses.
Key Task 4	Plan interviews series by geographic centre and customer Phone and arrange interviews Analyse results
Results	Comprehensive understanding of customer service by product type by customer (including by chain), by region. List of recommendations.

Transport Networks

Manufacturing: UK transport strategy

Sector	Manufacturing
Product	Building construction
Project Type	To review the operating efficiency of the outsourced UK transport operations, identify areas for improvement and assist in implementation
Scale of Business	One of the UK's manufacturers of concrete slab cube with 4 plants.
Key Task 1	A full audit of the operation and conducted interviews with various staff, at all levels.
Key Task 2	Mapped out all the processes, reviewed operating procedures and communication protocols, analysed the key performance indicators.
Key Task 3	The fleet was re-assessed to consider the optimum size and type of tractors and trailers required.
Key Task 4	Key staff were evaluated as were their location and reporting structures
Key Task 5	Assist in implementation including establishing PerformanceMeasurement & a new pricing structure
Results	Delivery failures dropped by 50%. Delivery costs reduced while financial returns to the transport operator improved

Prisoner Transport Services: Service and Cost Improvement

Sector	Government and NGO
Products	Prisoner Transport Services
Project Type	Performance Review of current systems and organisation.Recommendations on productivity, systems and cost savings
Scale of Business
Key Task 1	Analyse, map and review the current scheduling system:volumes, costs and staff deployment. Highlight key factors for success
Key Task 2	Investigated the complexity that prisoner types and personal safety has on the system objectives and requirements
Key Task 3	Build conceptual solution and market review for potential suppliers. A tender process was managed
Key Task 4	Operating cost and capital budget written
Results	A fully costed Dynamic Scheduling package was detailed with an outline implementation plan and revised operational process.Provider recommendations were delivered

Outsourcing

Third Party Contracting: Pallet network economics and profitability

Sector	Third Party Contracting
Products	Pallet distribution
Project Type	Transport strategy
Scale of Business	£140m sales; 1,000 vehicles; 90 locations
Key Task 1	Optimise location of hubs and determine volume break- point for the development of new regional hubs
Key Task 2	Analyse regional delivery boundaries and improve efficiency of transport operation through realignment of boundaries and transport consolidation
Key Task 3	Develop profitability model to determine business performance by customer and geographical area
Key Task 4	Develop internal charging tariff based on weighted cost variables in transport and warehousing
Results	2% margin improvement; opportunities for a further 8% improvement at individual operating level

Implementation and Project Management

Wholesaling: Outsourcing transport operations

Sector	Wholesale Distribution
Product Type(s)	Building products
Project Type	Primary Transport Review
Scale of Business	£200m sales; 12,000 pallets
Key Task 1	Analyse current operation and establish benchmarks
Key Task 2	Analyse options for alternative operation to improve service levels and security of deliveries
Key Task 3	Develop Tender specification; Identify suitable contractors; Evaluate 3PL responses
Key Task 4	Develop recommendations
Results	On-time delivery services with minimal product losses; 16% transport savings

Procurement

Wholesaling: Inventory Review

Sector	Wholesaling
Product Type(s)	Industrial Products
Project Type	Inventory Review
Scale of Business	£100m sales; 25,000 TEUs
Key Task 1	Prepare a review of systems, forecasting and inventory planning processes and costs.
Key Task 2	Develop forecasting tools ands inventory analysis model to determine target stock requirements at each node along the supply chain
Key Task 3	Test forecasting and inventory model
Key Task 4	Establish a framework for forecasting and inventory decisions making and an implementation plan and recommendations
Results	Simple monthly methodology identified 15% saving in working capital and provided a practical implementation plan

Logistics & Supply Chain Systems

Healthcare: Landscape Review of Cold Chain

Sector	Healthcare Aid
Product Type(s)	Vaccines
Project Type	Landscape Review of Cold Chain
Scale of Business	?s
Key Task 1	Review UK, India, South Africa, Pacific Rim Chilled Food Supply Chains as a reference point
Key Task 2	Research suppliers of cold chain distribution equipment including the military movement of food and medical supplies
Key Task 3	Research academia to check progress on some key technologies: refrigeration, RFID, Mobile phone bar-code reading, temperature recording in high temperature climates, etc
Key Task 4	Discover the route taken by other distributors of similar products in Africa for humanitarian aid.
Results	Highlighted potential solutions for the distribution of chilled vaccines and the technology routes to be followed