The Supply Chain Consulting Group Review Logistics Strategy For Wales & West Utilities
Wales & West Utilities is a regulated gas distribution business with around 35,000 km of gas distribution pipelines covering Wales and the South West of England, equating to a 1/6th of the UK with a population of 7.4 million in its catchment area.
Every year, Wales & West Utilities provides 20,000 new gas connections, replaces or repairs 250,000 gas meters, and responds to more than 125,000 emergency calls. Therefore, maintaining a robust and efficient logistics operation is crucial.
The company’s existing outsourced logistics contract was due for renewal so Wales & West Utilities required expertise from an independent logistics consultancy to help develop the tender scope, which would be sent out to the pre-tender qualification shortlist of Logistics Service Providers (LSPs).
Wales & West Utilities engaged The Supply Chain Consulting Group (SCCG), as the Specialist Supply Chain and Logistics Consultants had significant experience within the Utilities sector. The SCCG team of experienced Consultants suggested that the tender process was an opportunity to completely review their existing logistics strategy, to benefit the entire supply chain instead of simply reducing the costs of the existing outsourced logistics operation.
SCCG conducted a comprehensive review of the existing end to end supply chain, to develop an understanding of the full logistics requirements of the Wales & West Utilities depot networks.
The analysis of the supply chain also defined the future state service level requirements and KPIs based on current best practice and client needs. Once the current state logistics map and future logistics requirements had been fully understood and agreed with Wales & West Utilities, the tender documents and scope could be finalised and issued to the shortlist of providers.
The tender process – which completely changed the logistics strategy already in place – resulted in significant annual cost savings far in excess of that which would have been achieved through just re-tendering the already established hub and spoke logistics operation.
Following this, SCCG continued to work with Wales & West Utilities to provide CAD designs and budget costs for improved facility layouts at two of their warehouse locations.
As a result of working with SCCG, the annual logistics costs savings were greater than originally anticipated, and Wales & West Utilities benefitted from an optimised and effective logistics network, enabling them to continue their high levels of customer service.
“We chose to work with The Supply Chain Consulting Group, not only for their significant experience in both logistics tender management and Utilities Sector logistics operations; but also because their approach from the outset of our consultant selection process, was to challenge our initial project brief and provide an alternative strategy to substantially increase the benefits to us.” Wales & West Utilities – Supply Chain Manager