Logistics Strategy Case Study, Bisham Logistics

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Client: B&M Retail

The Project:
To review current operations and develop a five year logistics strategy for transport, warehousing and inventory. To assist in planning and project managing the implementation of the strategic recommendations.

B&M Retail is a fast-growing discount retailer based in the North of England. The company offers consumers a fast-changing range of 8,000 food and non-food lines with many seasonal products and opportunity buys. The company was planning to double the number of stores and wanted to understand the impact of these changes on the logistics operations and to ensure they were capable of supporting the business in the future.
An existing logistics strategy had recommended spending over £3m on developing new facilities and the company was concerned that this did not represent good value for money. We were asked to undertake a fresh review to ensure a cost effective result and one which could be implemented without disruption to existing operations.
Bisham Consulting analysed the service and cost performance of the current logistics operations including transport, warehousing, inventory and systems. A Cost-to-Serve model was developed to provide a benchmark against which to review future alternative options. Using software tools, we modelled the future forecast volumes, store locations, inventory levels and warehousing requirements to determine the optimum network configuration.
During the course of the analysis, a number of areas for improvement were identified; in particular, inventory and order management, warehouse management systems and productivity. A key finding of the study was a recommendation to re-develop the existing 220k sq. ft. Distribution Centre. This involved relaying the concrete floor and re-equipping the facility over a period of 2 years to minimise costs and avoid disrupting continuity of service to stores. We helped to plan and project manage the successful implementation. · A 5 Year fully-costed logistics development plan to improve performance and profitability
· Warehouse Management Systems specification and development
Recommendations of improving capacity and productivity
· A Distribution Centre refurbishment and implementation plan
· Project management to assist in implementing our joint recommendations · New 5 year flexible logistics development strategy to handle planned growth.
· An operating plan to reduce costs by 25% with an improvement in net margins by 1.5%
· A £2m capital project to refurbish a 220k sq. ft. Distribution Centre delivered on time, on budget
· Additional storage capacity of 28% and improved warehouse productivity of 26%
· Improved warehouse and order management systems