GH uses Tendering to Filter Through the Best Logistics Solution

Logistics OutsourcingBrewed by Hand Ltd are the exclusive distributors of Hario in the UK. Hario is imported from Japan and is finest hand brewing tea and coffee equipment.
Having seen significant growth in sales, fuelled by the introduction of the Loveramics range, increasing sales via the internet and a partnership with Amazon, there was a continued expectation that growth would continue along the same trajectory for the foreseeable future

Brewed by Hand were operating out of a self-managed warehouse facility which, due to the impressive performance of the business had clearly become insufficient to satisfy their operational needs and unless addressed, was in danger of constraining growth in the near future.

Brewed By Hand initially contacted Gideon Hillman Consulting (GH) to assist with defining the requirements of the current and future Logistics operation with a view to moving the operation to a larger self-managed warehouse. An important priority for the Directors, was to retain the business within the locality to ensure continuity of employment for its’ staff and to be able to develop the potential of the on-site sales showroom.

Having met with the Directors of the business, it became clear to the Consultants at GH that due to the impressive but un-quantifiable growth projections, attempting to define a solution that would be both appropriate for the 5 year business plan whilst at the same time not over-burdening the business with unnecessary cost at this significant stage of its’ growth would be difficult. What the business really required was a scalable solution that would grow with the business, adding cost in line with turnover.

Logistics TenderingIt was agreed that rather than commit to an in-house solution the most appropriate outcome was to outsource the warehouse operation to a 3rd party provider. This would provide the required flexibility, which if the business achieved its’ projected growth would not place operational constraints but equally would not place burdensome cost if a flatter growth pattern was experienced.

GH, after having conducted a full review of the operational activity, product portfolio and commercial aspirations of the business, undertook and managed the tender process for the outsourcing of the Logistics operation.

From its’ extensive understanding of 3rd party providers it was able to select appropriate providers and after having managed RFQ responses was able to present recommendations for the most suitable partner to work with Brewed By Hand.

David Lomax, Director at Brewed by Hand commented “the thorough analysis undertaken by Gideon Hillman consulting of our current and anticipated future needs enabled us to arrive at the decision to outsource with real certainty, and armed with a level of detail that made far easier the provider selection process”

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