Vita Cellular UK

Keeping costs down for Vita Cellular UK

Vita Cellular UK is a world leader in the production of flexible foam. Vita needs a co-ordinated, visible approach to logistics – and to keep operational costs low - but was not achieving significant savings through hard price negotiation alone.

TDG took a holistic approach which succeeded in reducing overall costs by 15% in the first five months using a third party logistics network (3PL).

Delivering quantifiable results

• Effective planning has increased utilisation by 5%, saving £66,000 on fleet costs and £116,000 on outside haulage costs.
• The fleet now comprises 46 high cube trailers and three compression trailers, which can be lowered in transit to accommodate height restrictions – the average on time delivery success rate is now 97%.
• TDG manages the maintenance unit and planning teams from one location – decreasing employment costs by over 20%.
• Overtime costs have been eliminated. Effective planning has meant hourly running costs have reduced from £35 to £27, representing a 23% reduction in man hour costs.

“Since TDG went live in May 2008, we have been impressed with their ability to deliver the service levels promised. The changes taking effect across our distribution operations have been implemented positively and results have gone in the right direction from the outset. We anticipate pro rata savings at year end of 5% - an excellent start.”
Jon Cheele, Managing Director, Vita Cellular UK

Contact us to discuss how our experience in this case may be relevant to your business.