Cleaning chemicals manufacturer
When working in partnership delivers greater savings and benefits
As a trusted source of cleaning and hygiene products around the globe, this company helps the institutional and industrial marketplace maintain safe, high performing facilities.
Its UK and Ireland logistics costs represent some £17 million of expenditure per year. Involving transportation of raw materials; collection, cleaning and management of chemical packaging; warehousing and bulk distribution; this company relies on smooth operations to protect its own, and its customers’ reputations.
The organisation had used its in-house logistics operations for many years, but was keen to enter into a true strategic partnership with TDG. From balancing staff needs whilst outsourcing the warehousing operation to TDG, through to leveraging even greater logistics cost savings, they achieved a truly holistic solution.
Delivering quantifiable benefits
- TDG entered into a deal with over £1.2 million worth of savings.
- An efficient new closed book system means pence per mile cost variances now only occur as a direct result of activity – and the expense of under usage of transport facilities sits with TDG.
- The move to a nominated day schedule has delivered major reductions in cost through greater vehicle utilisation, less trunking, reduced fuel and driving costs.
- The bulk distribution tanker operation has moved to TDG and, following significant investment in the fleet and driver training, the company has seen service levels rise from 88% to 99.5%.
- Wasted warehousing space has been eradicated as TDG now markets any available space at the customer’s two main warehouses (containing over 25,000 pallet spaces between them).
- Warehouse productivity has increased by 12%
“Customers choose to outsource for different reasons. With this customer, we have been able to secure significant cost benefits as a direct result of our open and consultative relationship - a win:win situation.”
Simon Bury, Commercial Director, TDG
Contact us to discuss how our warehousing and distribution experience in this case may be relevant to your business.
