In order to deliver leading edge service and cost competitiveness, Tate & Lyle put its non-core packed goods logistics service requirements out to competitive tender in June 2008. Leading logistics provider Bibby Distribution was awarded the contract, impressing Tate & Lyle with its competitive edge. The contract is based at an 88,000 ft2 multi customer site in Bicester which provides UK wide warehousing and distribution.
A comprehensive project plan that would ensure the successful implementation of the operation, was developed to deliver service during a very busy trading period, and Bibby Distribution achieved a completely seamless operational transfer on-time and within budget.
Once fully operational, Bibby Distribution was able to provide its new customer with significant added value through the implementation of its management tools that allow the accurate reporting of trends, costs, and service performance levels.
Having delivered excellent service and cost performance throughout the implementation, the operation was swiftly established. Bibby Distribution introduced its established operational development tools and has partnered very effectively with Tate & Lyle to make informed business decisions correctly and quickly. This has resulted in several significant benefits to the business including making it possible for Tate & Lyle to reduce its storage levels by 15% compared to original expectations.
In addition, Bibby Distribution was able to bring additional cost savings for its new client. It met the initial ‘cost per pallet' targets within weeks of start up, and bettered them by a large margin within the first six months. Challenging key performance indicators (KPIs) for deliveries ‘on time and in full' have also been exceeded and continue to improve with Continuous Improvement and Lean initiatives being driven in partnership by both businesses.
Iain Speak, CEO of Bibby Distribution, says: "Tate & Lyle brought Bibby Distribution a challenge, and I'm very pleased to say that we not only met its expectations, but exceeded them. Taking a collaborative approach is what we do best and we hope that by continuing to work together we can realise even more efficiencies that will benefit the partnership for years to come."
Mark Rowlatt, Head of Distribution Tate & Lyle Sugars, comments: "Our engagement with Bibby Distribution from the early stages of the original tender, through the project implementation phase and subsequent execution of the day to day operation has been wholly professional. As a business it was important to ensure a high degree of cultural fit between the two organisations coupled together with logistics expertise and a desire to work collaboratively to drive through change. In this regard, Bibby Distribution has not disappointed and has consistently demonstrated an appetite to lead continuous improvement as a key enabler to support growth and to enhance overall supply chain capability"
Although efficiencies have already been realised, Bibby Distribution is not resting on its laurels. The company has pledged to continue working in close collaboration with Tate & Lyle on ongoing initiatives to develop a ‘step change' programme which aims to strip additional costs from the logistics operation and achieve further savings and ensure a long and profitable relationship.