Logistics Network Strategy & ITT

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Challenge

This leading UK supplier of branded hair care products sold on a global basis, with more than 80% exported across multiple markets. The client operated its own warehouse, with transport operations outsourced, including supplying export markets, UK retailers across both bricks-and-mortar and B2C channels, as well as direct-to-consumer fulfilment. Primary transport operations covered factory-to-distribution-centre movements and customer deliveries. Having experienced significant growth, which was forecast to continue, the client’s warehouse had reached capacity and could not accommodate future volumes. A previous project completed by SCALA had identified that the current transport operations were expensive and that there were opportunities to deliver cost efficiencies and support future growth through the outsourcing and optimisation of the client’s UK logistics operations. The purpose of the project was to identify the optimal outsourcing arrangement for the client and manage the ITT process through to supplier selection, appointment, and Heads of Terms.
Client
Leading Global Hair Care Branded Supplier

approach

Working closely with the client, SCALA created an ITT document that described the operational requirements and set out the core processes and contractual arrangements for the future solution. A two-step approach was undertaken, beginning with an initial Request for Information (RFI) issued to 12 potential suppliers. This was then reduced to five suppliers who received a formal Request for Proposal (RFP). SCALA managed the full ITT process, including supplier due diligence, site visits, and reference checks, while using an evaluation matrix to identify the best placed solution. Throughout the process, SCALA also provided guidance on future contract structure, including service levels, contract length, and commercial arrangements. The full ITT project was completed within 13 weeks.

Outcome

The recommended solution enabled the client to move to a logistics network that enabled capacity for future growth and reduced its UK warehousing and transport by 33%.