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3PL TODAY 2013_ukwa 2 column 03/01/2013 10:44 Page 1

3PL Today Promoting Best Practice in Modern Logistics

Jungheinrich announced as CEVA’s top supplier in Northern Europe - see page 30 PUBLISHED BY THE UNITED KINGDOM WAREHOUSING ASSOCIATION


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It could be argued that the recession has had a positive impact on the 3PL sector, says Roger Williams, chief executive officer of the United Kingdom Warehousing Association

Positive thinking T

he past year has been a challenging time for the logistics industry with the fall out from the recession and ongoing doubts over the Eurozone continuing to have an impact across all industry sectors. And yet there are opportunities: the recession has forced companies to undertake a root and branch review of their business practices and, as a result, many have come to realise that it makes a lot of sense to focus on their core activity and outsource other elements of their business to specialists. I am pleased to say that UKWA has not experienced any significant drop in member numbers throughout the recession. In fact, year-on-year membership figures show a modest net growth. Paradoxically, many of our members have come to see the sustained economic uncertainty as having a positive impact on the 3PL sector. They contend that, while as a nation we continue to rely more and more on imports, 3PLs will be ever more in demand to store and deliver the goods we’re importing. Certainly, the services that a good 3PL can offer to a company – regardless of the industry sector in which it operates – can be invaluable. And, driven in part by the online shopping revolution, the type of services available from a 3PL have evolved way beyond traditional pallet storage. For example, there is a growing belief

that after sales and customer service will be the next business disciplines that forward thinking companies will choose to outsource to specialists and the third party logistics industry is ideally placed to capitalize on this trend. One particular UKWA member recently reported that it has developed the after sales and reverse logistics services that it offers to the extent that some 30 per cent of its annual turnover is generated this way. The company offers a call centre to field clients’ customer queries, a product repair centre where faulty or damaged goods are fixed and returned and a rapidly growing online resale operation that uses the trading website e-bay to sell returned items directly to the consumer. Service is key The ability to offer a quality service is the cornerstone of any logistics business and, while users of 3PL services are, of course, cost-conscious, a recent survey by Eye for Transport highlighted that most shippers place quality of service higher than lowest price when it comes to choosing a logistics partner. Interestingly, the 3PLs interviewed for the same survey believed that their clients were more likely to be driven by cost issues – a point which may go some way to explaining why large chunks of the industry continue to Continued on page 4

www.ukwa.org.uk

“One UKWA member recently reported that it has developed the after sales and reverse logistics services that it offers to the extent that some 30 per cent of its annual turnover is generated this way” 3PL Today

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Continued from page 3 operate on very narrow margins. But encouragingly for the sector, the Eye for Transport survey found that most users of 3PL services rated their 3PL partner’s service offering as ‘outstanding’ or ‘higher than expected.’ Challenges One of the more obvious challenges facing the 3PL sector in the UK is the acute shortage of good quality, affordable warehouse and distribution space that is the result of the lack of speculative property development in recent years. Over the past three years the supply of new build or refurbished industrial accommodation has fallen steadily to the point where it now represents just 11 per cent of all available stock. Currently 84 per cent of all available storage space in the UK is classed as second hand. This paucity of decent facilities in prime locations is driving above inflation increases in rents as landlords seek to cash-in, which, in turn, is putting additional pressure on the already tightly squeezed margins of companies operating in the UK’s logistics industry. It would appear inevitable that any increases in rents will result in price increases across the supply chain – which will not help the broader economy as it seeks to recover from doldrums. The situation is unlikely to ease in the immediate future as uncertainty arising form the Euro crisis seems certain to delay the return of significant levels of speculative

3PL Today

development activity and the lack of good quality accommodation is leaving many 3PLs with little alternative but to put off decisions to take space rather than take poor quality stock. In many cases companies are reconfiguring their existing facilities to accommodate new or growing accounts. Looking further in to the future, the issues raised by our increasingly congested roads and the spiraling cost of fuel, are unlikely to ever be far from the top of the logistics agenda. Needless to say the rising cost of fuel means that the transportation element of every supply chain is facing increased scrutiny. And there is growing political pressure to use more efficient transport operations, with the European Union recently stating that transportation over 300km should ideally not be carried out using the road network. To reduce transportation costs the location of hubs and distribution centres, taking into account primary and secondary moves and consumer market density, is becoming increasingly important. This is all leading to a growing belief that the so-called port-centric model - where DCs are based close to a port rather than in a traditional centralised location - makes sense for companies looking to reduce the distance goods need to travel by road. It seems reasonable to assume, that with landside transportation costs – particularly road transport – now such a large part of overall supply chain costs (and likely to grow further still) anything that allows costs to be reduced through the elimination of unnecessary links in the supply chain is likely to find favour with supply chain professionals. As a result, ports such as the new London Gateway development (opening late in 2013) and Liverpool and Port Salford, are likely to have an increasingly important role to play in the evolution of future supply chains as they come to be viewed as an important inventory management location in the end-to-end supply chain. For further information about the United Kingdom Warehousing Association and its activities contact: UKWA, Walter House, 418-422 Strand, London WC2R 0PT. Tel: 0207 836 5522 www.ukwa.org.uk

www.ukwa.org.uk


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3PL Today With the economic outlook uncertain, an optimised supply chain is more important than ever, writes Roger Williams, CEO of UKWA

Get ahead with a 3PL B

ecause most companies have a major percentage of their costs tied up in their supply chains, supply chain management - once seen as something of an add-on with no real bearing on a business’s ultimate success - has been elevated to a key board-level discipline. And, with economic outlook uncertain an optimised supply chain is more important than ever. The approach to supply chain optimisation has traditionally focused on one piece of the puzzle at a time. These can include sourcing goods and services strategically to strike a balance between lowest material and transportation costs; maintaining the right mix and location of factories and warehouses to serve customer markets; and, using traditional logistics techniques to maximize distribution efficiency. However, since the 1980s there has been a sharp upturn in the number of companies that choose to outsource logistics and supply chain management functions to third party logistics service providers – or 3PLs.

Gain an advantage What advantages should a company expect and look for when considering entering into a third party logistics agreement? • A healthier balance sheet - switching to a 3PL removes the requirement for capital investment in warehouses, materials handling equipment and transport fleets, and the up-keep and maintenance of these assets allowing financial resources to be concentrated on other core business areas. • Operational flexibility - a 3PL will have the resources to meet changing needs and the ability to respond quickly to changes in the market place. • Cost savings - from economies of scale, more direct routing, additional expertise, stricter inventory control and, with improved technology, a reduction in emergency shipments at premium prices. • Freedom to focus on core activities - a 3PL provider will help to develop a company's long-term strategy to improve customer services, reduce costs and improve efficiency leaving the company to concentrate on it what it does best.

3PL Today

Typically, 3PLs specialise in integrated warehousing and transportation services that can be scaled and customised to a customer’s needs. The kind of service offered will be based on a client company’s own unique market conditions and the demands and delivery service requirements for the goods that company produces and sells. In today’s price sensitive market, the need to drive cost out of the supply chain is often cited as a major reason for using third party logistics service providers. However, perhaps a better reason for engaging outside experts is the in-depth knowledge, flexibility and added value that a specialist contractor can provide. In short, as well as helping companies to achieve significant cost savings, a good 3PL will enable a business to enjoy shorter order cycles, better customer service and improved all-round business efficiency. There is no question that an effectively managed supply chain can positively influence business performance and, if companies are going to succeed in an increasingly competitive and unpredictable environment, every link in the chain must operate at optimum efficiency. That’s why any company that finds its fixed logistics costs are having a negative impact on its balance sheet simply has to consider outsourcing to a 3PL. Value added Members of UKWA – the leading trade association for the third party logistics industry - undertake an exceptional range of warehousing and added value services, from animal feed storage through bonded warehousing to e-fulfilment but, regardless of the areas in which they specialise, the Association’s members all share a determination to drive up professional standards in the warehousing sector. You can find a UKWA member capable of meting your logistics needs by visiting the UKWA site – www.ukwa.org.uk

www.ukwa.org.uk


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Empty gesture Chancellor George Osborne’s announcement in his Autumn Statement that a longer grace period for the payment of empty property rates for newly completed buildings will be introduced next year is too little too late for the logistics industry, says UKWA chairman John Maguire

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hile Chancellor Osborne’s recent announcement that all newly built commercial property completed between 1 October 2013 and 30 September 2016 will be exempt from empty property rates for the first 18 months is to be welcomed, the rules relating to empty property rate rules are still hindering the logistics industry. The previous Labour administration changed the tax position relating to empty warehouses by making unoccupied facilities liable for empty property rates at the same rate as occupied buildings in Spring 2008. But, with the recession making it increasingly difficult to fill warehouses, many warehouse owners simply demolished empty buildings to avoid paying the tax. And, as speculative new-build development projects have dryed up since the start of the recession, the logistics industry is now facing an acute lack of good quality, affordable warehouse and distribution space. Ministers originally sought to justify the changes to the Empty Property Tax rules on the grounds that the reforms would provide an incentive for owners to re-use, re-let or re-develop their empty properties. They also argued that the changes would result in an increase in the supply of commercial property available to new and existing businesses, thereby helping to reduce rent levels which burden the competitiveness of the UK. Neither of these things happened. Because the tax has encouraged the early demolition of older empty warehouse buildings and made developers reluctant to embark on speculative construction

3PL Today

projects, companies looking for warehouse accommodation – be they retailers, manufacturers, importers or specialist logistics services businesses – are faced with a shortage of available warehouse space and are being forced to pay higher rents as land- lords seek to cash-in on the paucity of decent facilities in prime locations by demanding above inflation increases in rents. To make matters even more frustrating, anecdotal evidence suggests that the tax has not brought in anywhere near as much revenue as was originally forecast. But it has clearly had a very negative impact on the warehousing sector and if it is not addressed it will continue to have implications for the broader UK economy. Of course, Chancellor Osborne’s changes to the rating system are an attempt to encourage new property development and for that he should be applauded, but UKWA urges the Government to apply empty property rates relief to older properties as well. The grace periods for commercial and industrial premises should also be extended beyond the three and six month periods which currently apply too. It should also be remembered that this relief does not apply for another year – which is less than helpful.

www.ukwa.org.uk

John Maguire is chairman of the United Kingdom Warehousing Association and sales and marketing director of Flexi Narrow Aisle Ltd


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3PL Today

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3PL Today

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Yusen Logistics (UK) Ltd Yusen Logistics creates solutions based on warehousing, distribution, air and ocean freight forwarding and supply chain management services.

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usen Logistics is a world-leading provider of contract logistics and air/ocean freight forwarding. Offering a truly global, total logistics service, we supply warehousing, distribution, freight forwarding and supply chain management services in one package – providing solutions which range from stand-alone operations to global supply chains. Working with manufacturers and retailers across a large variety of market sectors, we have specialist experience in the automotive, consumer electronics, pharmaceutical, manufacturing and retail sectors. Understanding that every profile has unique characteristics, we tailor our services to create a robust and cost effective solution. Information systems are constructed to meet the particular needs of each client while extensive warehousing and multi-modal transport options are provided both in-house and across a portfolio of strategic partners. At the same time, we are

3PL Today

building on our established infrastructure, rolling out networks to serve supplier bases in emerging markets to mirror clients’ changing sourcing patterns. With regional headquarters in Europe, Japan, East Asia, South Asia & Oceania and the Americas, our international network covers almost every country in the world. This helps us ensure the timely flow of raw materials, components and finished products – regardless of where they are sourced – as they move through the supply chain.

Yusen Logistics (UK) Ltd

Grange Park 1, Cheaney Drive, Grange Park Northampton NN4 5FB Tel: 01604 748500 Fax: 01604 748543 www.eur.yusen-logistics.com

www.ukwa.org.uk


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An Association with a long and proud history

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ith its origins in 1944 the United Kingdom Warehousing Association (UKWA) is Britain’s leading trade organisation representing the third party logistics sector. The Association has over 650 member companies operating nearly 100 million square metres of warehousing from around 2000 depots across the UK. 3PL companies belonging to UKWA have been operating viably for at least six months and have demonstrated the highest standards in warehousing - two factors that should bring peace of mind to users of their services. While the membership of UKWA is comprised predominantly of third party warehousing and logistics service providers, membership eligibility criteria is no longer restricted to companies operating in the third party logistics and warehousing sectors. This means that retailers, manufacturers and wholesalers are free to join UKWA and compare best warehousing and logistics practice with the leading

companies in the logistics field. Furthermore, UKWA also welcomes members from outside the United Kingdom's borders into its membership. The Association is also open to suppliers to the warehousing and logistics sectors who can join as Associate Members. It is UKWA’s firm belief that by maintaining close working relationships with all aspects of the industry, UKWA will maintain its position at the very heart of the logistics industry. “The UK logistics industry is an essential part of the country’s economy and plays a pivotal role in domestic and international commerce. With its remit to serve both both 3PLs and those companies that operate their own warehousing and transport facilities, UKWA is a powerful voice of the whole industry,” says Roger Williams, chief executive officer of UKWA.

“With its remit to serve both both 3PLs and those companies that operate their own warehousing and transport facilities, UKWA is a powerful voice of the whole industry”

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www.ukwa.org.uk

3PL Today

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3PL Today UKWA Members have access to a wide range of business services – all of which add up to make UKWA a vital component for success

Partners for success Conditions of Contract The UKWA Conditions of Contract cover a broad range of services such as freight forwarding, haulage and, of course, warehousing. Member companies do not have to prepare three different contracts to encompass these distinct areas of their business - one document is sufficient. UKWA’s Conditions of Contract are ideal for those companies that provide haulage and/or freight forwarding services in addition to straightforward storage facilities. Those firms that provide a full range of logistics-based functions have the peace of mind of knowing that the UKWA Conditions of Contract cover all of the services that they offer. Legal Help Desk UKWA’s 24-hour legal helpline offers members free legal advice on subjects such as company and employment legislation, landlord and tenancy agreements, insolvency, Conditions of Contract, insurance claims etc Human Resources Advice Members have access to advice on employment law as well as a full range of HR issues. A complete range of clear and legally compliant HR letters, forms, contracts, an employee handbook and customisable policies is available online. Meanwhile, confidential, friendly, pragmatic and highly professional HR advice is available by telephone or email. UKWA Insurance In partnership with Willis Limited and Allianz Insurance UKWA provides an insurance package specially designed for members.

3PL Today

UKWA Publications UKWA produces a host of informative publications within which members can source all sorts of interesting information. For instance, Fire Precautions – Guide to Risk Assessment is a 12 page spiral bound guide compiled by the Association’s Operations and Safety Committee. It is a comprehensive guide to the warehouse operator’s fire risk-related responsibilities under the law and features a number of easy to use check lists to help you to ensure that your operation meets its legal obligations. Operational Efficiency UKWA’s partner Utility Watch is the market leading Business Utility Broker in the UK and UKWA’s Utility Watch scheme can provide significant time and cost-savings for members who upgrade their gas, electricity and telecommunications. One UKWA member recedntly reported saving £84,000 per year on electricity through the scheme. UKWA has also teamed up with leading independent fuel card supplier Forecourt Fuels Ltd to guarantee that UKWA members pay the lowest possible rates for on road diesel -both in the UK and throughout Europe. Property Information UKWA members can receive very useful advice about a host of business rates and other industrial property related matters as part of their membership package on a special helpline operated in association with leading property consultants Lambert Smith Hampton Specialist guidance UKWA members have access to a group of honorary advisers covering a broad range of specialist skills – from pest control to hazardous chemicals storage. They can be contacted by telephone or email and are happy to give valuable advice on a broad range of logistics-based topics as well as general business issues Networking opportunities Anyone in business knows the value of contacts and occasions such as the UKWA’s regular regional meetings and the UKWA Annual Luncheon and Awards for Continued on page 15

www.ukwa.org.uk


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Solutions tailored to a customer’s individual requirements UPS Supply Chain Solutions (UK) Ltd Ascot Drive, Derby DE24 8NB Tel: 00 44 1332 576408 Web: www.ups.com Business contact: Tony Dawson Email: tony.dawson@ ups.com

Warehousing With 776 facilities in more than 120 countries and 31 million sq. ft. UPS provides a wide range of services for our customers from dedicated to multi-user warehouse operations managing their supply chain globally. Within the UK UPS SCS operates multi-user sites (pallet and carton storage) providing operational and commercial flexibility which allows us to react to the changing business demands that our customers experience within their individual business sectors. All facilities provide value added services ranging from, container receipt, product rework & re-labelling, contract packing & product customisation and Quality inspection. All facilities have direct access to UPS Distribution and UPS Small Package services. Distribution FTL & LTL palletised distribution is via UPS resources providing the full range of next day and date specific delivery services throughout the UK. Within the UK UPS has a relationship with UK retailers’ which has developed over 25 years, providing LTL collection and FTL delivery and shipment

3PL Today

visibility at purchase order level, from point of collection through to final delivery to a retailers distribution centre. Our Retail distribution service ensures our customers inventory is in the right place at the right time in order to maximise sales opportunities for our customers and retailers.

Contract Distribution Bespoke, dedicated and shareduser solutions tailored to our customer’s individual requirements, ensure that our Contract Distribution product delivers tangible benefits for our customers. Within Contract Distribution we provide fully dedicated solutions in customer livery, through to a mixture of dedicated & shareduser solutions, depending on our customers' requirements. All services are managed by dedicated UPS employees, operating from either our customers facility or alternatively from a central point within a UPS facility. Our Contract Distribution service is highly flexible and designed for those customers with a supply chain that requires a bespoke solution. For more information, please contact tony.dawson@ups.com Tel - +44 (0)1924 876100

www.ukwa.org.uk


3PL TODAY 2013_ukwa 2 column 03/01/2013 10:45 Page 15

3PL Today Continued from page 12 Warehousing Ceremony, offer fantastic opportunities to meet new business contacts, leads, clients, customers and owners or decision makers from many other businesses in the sector.

entirely free of charge. Published ten times throughout the year Warehouse not only communicates news of the Association’s activities, but also keeps the membership up to date with developments in the wider warehousing and logistics sectors.

Healthcare A range of competitively priced private health and dental insurance packages is available.

Business generation UKWA uses all means to promote a high profile for the Association and its members. Our message is clear: As the third party logistics services sector becomes increasingly competitive, customers looking for high quality warehousing and a high standard of service – no matter how large or small their requirement – have the peace of mind of knowing that companies belonging to UKWA can demonstrate the highest standards in warehousing.

Business advice Through our partner, Peter Farmer Associates Ltd, UKWA can advise members on a host of business issues including company sales, mergers and acquisitions. Annual conference Over 100 delegates attended this year’s UKWA annual conference of UKWA. Feedback from delegates was very positive with the relevance of topics scoring highly as well as the quality of the presentations. Monthly magazine UKWA members receive the Association’s award winning Warehouse magazine

Find a 3PL online UKWA’s website - wwww.ukwa.org.uk -provides buyers of logistics services with a host of valuable information. For example, vistitors to the site can search by geographical area or type of service that they require to access details of relevant suppliers who meet their needs quickly and easility.

www.ukwa.org.uk

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Visit UKWA at key trade shows in 2013

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KWA will have a high presense at all the major trade shows for the logistics industry in 2013. In February visitors to the Logistics Link event at Sandwon Park are invited to visit the UKWA stand, while a month later one of the key attractions at March’s IMHX 2013 will be the UKWA third party logistics (3PL) Pavilion. The UKWA Pavilion will showcase the products and services offered by UKWA members and associate members. The Pavilion will be centered around a hospitality area where visitors to the show can learn more about the workings of the UKWA and the benefits of joining the association. The facility will also be somewhere where visitors can discuss their logistics or materials handling needs with UKWA Pavilion exhibitors away from the noise and bustle of the exhibition. Among the third party logistics services specialists exhibiting within the UKWA Pavilion are: Paul Ponsonby, DHL and

3PL Today

Onward Holdings. Suppliers to the sector with a presence within the UKWA pavilion include: Flexi Narrow Aisle and Gemini Data Loggers. In May, UKWA will once again have a pavilion within the Multimodal show which, like IMHX, takes place at the NEC. The Association also plans to exhiibit at a number of shows serving key ‘vertical’ markets throughout the year.

www.ukwa.org.uk


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Aisle-Master

articulated forklifts –

Increased storage, reduced costs and improved productivity The Aisle-Master range of very narrow aisle articulated forklifts enables warehousing and logistics operations to increase storage capacity, cut costs, speed up the handling process and improve productivity. The ingenious articulated design of the trucks allows them to replace a combination of reach and counterbalance forklifts, and to work in very narrow aisle widths for a vast increase in pallet density. This can double the amount of storage space available in a given area which considerably reduces per pallet costs. Extra outlay associated with renting additional warehousing can therefore be avoided, reducing overheads on rent and utilities, lowering the carbon footprint and energy consumption. Aisle-Masters are fitted with large super elastic tyres for versatile indoor and outdoor operation, so are able to offload in the yard and take loads directly to indoor racking. This eliminates time consuming double handling for much faster procedures overall. There is also no need to invest in super flat floors in the warehouse, unlike operation with other traditional types of VNA turret trucks. The trucks can be customised to individual requirements and the range encompasses AC electric and LPG powered models with lift capacities of up to 2.5t and lifts heights to 15m. Robustly built, they are proven to cope with intense, round the clock shifts. AC technology, incorporated as standard in the electric powered models offers benefits such as reduced wear and tear on components for longer life

Aisle-Master Ltd Co. Monaghan, Ireland Tel: 00353 47 80400 Email: info@aisle-master.com www.aisle-master.com

www.ukwa.org.uk

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Established in 2000, is the largest transport and logistics company on the Isle of Man, operating from a central UK hub in Lancashire and 2 depots on the Island. Employing over 100 staff and operating 120 trailers and 50 Vehicles through it’s centres, TDL specialises in freight services and local deliveries to over 200 retail outlets and the major wholesalers on the Isle of Man. Amongst the services provided are: Food & Drink Warehousing and Distribution Both ambient and temperature controlled services depart daily from the UK to the Isle of Man. Goods are shipped overnight, speedily cross docked the following morning and distributed to the wholesalers and stores across the Island. Home Delivery – Whether it be a kitchen, bathroom, bedroom or an appliance, TDL operates a home delivery and installation service, for both local and UK leading brands throughout the Island and has recently been awarded a contract to operate a similar service throughout the UK. Warehousing - Operating from more than 150,000 sq.ft. of warehousing, providing stock control and picking services for a range of products including, beers wines & spirits, grocery & confectionary, white & brown goods, telecommunications equipment, kitchens & bathrooms and refrigeration & air-conditioning parts. Their Skelmersdale site incorporates a 400 pallet cold store allowing consolidation of chilled and frozen goods for distribution throughout the U.K. and Isle of Man. Logistics - With expertise in the full range of logistics services, TDL are capable of managing all aspects of your company’s distribution requirements and are often called upon to provide a cost effective, high standard, bespoke solution to numerous Blue Chip Companies. If you’re moving product regularly to Regional Distribution Centres or direct to Store, TDL can provide support during peak trading periods, or a total solution including warehouse management, transport management, software support through it’s self developed “TrackIt” planning system, distribution network and a hands on consultant support program. Managing Director Steve Pickett, with over twenty years experience in freight and logistics project management, commented on the Company’s progress to date. “It has been a remarkable transition from our early days of supply chain management, shipping, warehousing and distributing our customers’ goods to the Isle of Man, to a fully functional third party logistics provider both here and in the UK”. What has been the key factor of success over the past ten years? “I have the privilege of working with a truly first class team of operational and business development executives, backed up by a solid capital investment program and back office professionals. We continually appraise our performance and are totally dedicated to customer service of the highest standards. The retention of our customer base provides the foundation to deliver our vision and drive our business foward” Trade Distribution wins major UK logistics contract Trade Distribution Limited, the logistics business of Heron and Brearley, has secured a major contract with market leading UK Kitchen and Bathroom design and manufacturing company, AKW. “This contract is not just a significant piece of business for TDL” said operations director, Vic van den Heever “It is also an opportunity for TDL to demonstrate its sophisticated parcel delivery system”. AKW supply showering, daily living and kitchen solutions to the majority of local authorities, housing associations and contractors throughout the UK and logistics is therefore an important aspect of their overall customer experience. All of their own products are manufactured in the Isle of Man. Steve Picket, managing director of wholesale and logistics at Heron & Brearley added “Although the UK logistics market is highly competitive, we have a culture of high standards and proven service levels, which has contributed greatly in winning this contract. It is particularly pleasing for us, as a Manx company, to continue to build on our success in the UK, by adding a further blue chip account to our customer portfolio. To request further information please contact: Hubert Lowry Sales Director Tel: 01695 722031 Mobile: 07836 616513 Fax: 01695 51803 Email: hubert.lowry@tdl.co.im

TDL finalist in the Company of the Year, Isle of Man Awards for Excellence 2012.


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3PL Today

Saluting the best of the UK’s logistics industry C

ompanies and individuals across the warehousing and third party logistics (3PL) sectors are rewarded for excellence at UKWA’s Annual Awards for Warehousing ceremony, which takes place every year at London’s Dorchester Hotel. In 2012 the Association received a record number of entries in all categories. The winners were chosen by UKWA’s Awards Committee, which comprised Phil Culling, Chairman of storage systems specialist Redirack; Mel Grainger, a past chairman of UKWA; and Roger Williams, the association’s Chief Executive Officer. Roger Williams commented: “UKWA’s Awards are established as symbols of achievement in the 3PL sector and emphasise the importance of logistics within today’s economy. The high number and quality of the entries we received underlines the professionalism that runs through the modern logistics industry.” A total of nine awards were presented in 2012 and the winners were:

Young Employee of the Year Winner: Joanne Dolan – Paul Ponsonby Ltd This new award was open to any employee not in a supervisory or managerial role under the age of 25 and was won by

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Joanne Dolan from Paul Ponsonby Ltd. In her first year with the company, Joanne recruited nine new accounts, redesigned Paul Ponsonby’s website and compiled competitor analysis and market positioning reports.

Environment Award Winner: Elddis Transport (Consett) Ltd The Award to the company that demonstrates the most significant and successful application of ‘Green processes, procedures or monitoring’ during the year went to Elddis Transport (Consett) Ltd. The judges were impressed by a number of green initiatives undertaken by Elddis, which included employing a leading vehicle aerodynamics expert to design a bespoke ‘spoiler’ to fit to its vehicles, which has had a significant impact on the company’s fuel consumption.

Team of the Year Winner: Amethyst Group The Team of the Year award – for the company or depot that demonstrates an outstanding team effort during the past year in their warehousing operations – went to Amethyst Group. The company’s Fradley Park distribution centre near Lichfield in Continued on page 22

www.ukwa.org.uk


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Torque adds value with reverse offering

In today’s marketplace, returns of merchandise can be a significant expense to the retailer, which in the long run can equate to thousands and sometime even millions of pounds from their bottom line. Studies have shown that an average of 4% to 6% of all retail purchases are returned and in the current economic climate it is more important than ever for retailers to find solutions to this ever-present issue. Torque is a specialist in the field of reverse logistics – over the years the company has worked closely with many of its customers to reduce the amount of discarded stock and turn merchandise back into profit. Unsold Items – Transporting Stock Seasonal trends, individual and/or popular opinion has a dramatic effect on whether a line sells well or not. Most retailers will have issues with their ranges at one time or another. This is where a knowledgeable logistics partner can come into play and assist a retailer in either strategically placing stock in locations where the item in questions will have a better chance of selling or diverting it to another trading channel, such as an outlet store. Torque is the expert in carrying out this particular type of reverse logistics and knows that to deliver an effective solution, time is of the essence. Make and Mend No matter what the industry, returns will always be an issue. Torque works closely with its clients to monitor returns by quickly and efficiently logging the reasons behind them as well as highlighting any fundamental problems with the product. In fashion if quality and presentation is in question, Torque has a specialist team and a state of the art processing centre to expertly refurbish and return a product to its original, if not enhanced, standard. From sewing to dry cleaning and pressing to ozone treatment, there are many cost effective services available to restore an item and bring it back to stock.

www.ukwa.org.uk

Case Study: Daxbourne International When leading hairpiece specialist, Daxbourne International, expanded its multi channel revenue streams, retail, wholesale, e-commerce, mail order and TV shopping channels, the growth of the business meant that it needed to increase its supply chain operation. With such a complex product offering, Daxbourne required a supply chain partner that specialised in reverse logistics. It was also vitally important to Daxbourne that this partner really understood its business and its customers. Torque, renowned for its meticulous attention to detail and breadth of processing services, was able to offer Daxbourne the perfect platform for its growing business. Due to the nature of the hairpiece market, customers will always need the opportunity to try and test the product. This means that there will always be a high percentage of returns and these will require processing and quality checking. On winning the Daxbourne contract, Torque recruited two team members with experience in hairdressing, to quality check all returns and provide refurbishment services where necessary before items are returned to stock. Once each item has gone back into the supply chain, Daxbourne receives an automated report detailing which customer to credit. Torque also provides the software to produce a stock rectification report, which is supplied every evening and calculates Daxbourne’s stock levels per revenue stream against the end of day stock levels at Torque, to ensure both figures correspond. Torque has a portfolio of clients it has worked with to successfully reduce their returns issues and in turn, has added huge value to their overall business. For further information on reverse logistics and Torque’s wide range of services, visit www.torque.eu or call 0800 085 5510.

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3PL Today Continued from page 20 Staffordshire recently increased throughput by 25 per cent.

Warehouse Manager of the Year

Make a date for 2013 2013’s UKWA Annual Awards for Warehousing presentation ceremony takes place in the Ballroom Suite of the Dorchester Hotel, Park Lane, London, on Wednesday 3rd July 2013. Further details on how to enter or reserve a table are available from Jacquie Corderoy, UKWA, Walter House, 418-422 Strand, London WC2R 0PT Tel: 0207 836 5522 or email: jcorderoy@ukw a.org.uk

Winner: Steve Nelson – Boughey Distribution The judges were looking for an individual with excellent personal and professional qualities and Steve Nelson from Boughey Distribution fitted the bill. Steve was nominated by Boughey’s Warehouse Director, Bernard Murphy, who said: “Steve’s management style is collaborative and he understands the importance of involving the team in his decisions. Since Steve joined there has been a significant improvement in the efficiency of operation and productivity within the warehouse and the team has become more motivated.”

Training Award Winner: Briggs Equipment This award is given for training achievement and can be awarded to an individual, organisation or jointly to both. Briggs Equipment impressed the judges with their forklift service engineers’ apprenticeship scheme. The company has heavily invested in a national apprenticeship scheme to train and educate school leavers into becoming fully qualified and multiskilled engineers and last year, Briggs welcomed six new recruits who are now fully integrated members of Briggs’ team of engineers.

Technology/Innovation Award Winner: Redirack Ltd RediRack collect this year’s UKWA Technology and Innovation Award for its recently developed automated pallet storage, retrieval and sequencing solution. The judges felt that the Redirack system represents a major step forward in warehouse design and operation by combining new and innovative technology with advanced storage systems to provide greater efficiency and substantial reductions in operating costs.

Customer Service Award Winner: Century Logistics Ltd The judges sought evidence of customer insight and a customer focused culture

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within an organisation and were most impressed with Century Logistics Ltd’s entry. Century’s managing director, Stephen Basey-Fisher, said: “The whole ethos of Century Logistics revolves around partnership. If a customer finds a task not part of its core business and/or would benefit from specialist skills, Century develops a bespoke service to undertake that task.”

Best New Member Winner: Williams Shipping Ltd This is a corporate award given to the company showing the highest professional standards of warehousing on joining UKWA and this year it went to Southampton-based Williams Shipping Transport Ltd.

Chairman’s Award Winner: Richard Hunt The UKWA Chairman presents this Award to an individual or company who has made a real and lasting contribution to the logistics industry. UKWA chairman John Maguire of Flexi Narrow Aisle Ltd chose Richard Hunt. Best known, perhaps, for his work with the Chartered Institute of Logistics and Transport (he was the CILT’s first national chairman and subsequently became President of the Institute), Richard was Chief Executive of Exel Logistics Europe before its merger with DHL. He has worked with Cranfield University and the Highways Agency Advisory Board and was awarded the CBE for his services to Logistics and Transport in 2004 . Over 400 UKWA members and their guests, together with suppliers to the warehousing industry, attended UKWA’s Awards for Warehousing 2012 ceremony. The main sponsor of the event was Jungheinrich UK Ltd, while individual Awards were sponsored by: Lutterworth EcoLighting Ltd, Redirack Ltd, Knapp UK Ltd, Toyota Material Handling UK Ltd, Clarion Events Ltd, Briggs Equipment UK Ltd, Psion (UK) Ltd, RedPrairie Ltd and Hoppecke Industrial Batteries Ltd You can see the highlights of 2012’s UKWA Awards for Warehousing including an interview with all the Awards winners on You Tube. Log on to the UKWA website www.ukwa.org.uk - and click on the link on the UKWA home page.

www.ukwa.org.uk


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Are you using a UKWA member? If not, why not? As the third party logistics services sector becomes increasingly competitive, customers looking for high quality warehousing and a high standard of service – no matter how large or small their requirement – have the peace of mind of knowing that companies belonging to the UKWA have demonstrated the highest standards in warehousing. A deter mination to drive up professional standards under pins UKWA’s activities and by joining UKWA a third par ty warehousing ser vices company demonstrates its commitment to best practice in every aspect of its business. UKWA members undertake an exceptional range of warehousing and added value services. Find out more by visiting www.ukwa.org.uk

United Kingdom Warehousing Association, Walter House 418-422 Strand London WC2R 0PT Tel: 0207 836 5522

Premium logistics services and bespoke solutions InBond operates a warehouse, storage and distribution facility in the North East of England. With over 20 years experience providing premium logistics services, offering dedicated bespoke solutions. The company offers a range of logistical services, including: • Ecommerce Solutions • Pallet Storage inc. General/Bonded Warehousing • Bespoke Pick and Pack Services • Full UK Distribution • Freight Forwarding (import and export) • Document Storage InBond takes great pride in keeping up to date with the latest trends. For example, it has been identified that online sales is a fast growing market and the requirement for a reliable ecommerce solution is key. InBond hastherefore invested heavily in developing its systems and processes to fully accommodate e-commerce solutions and

provide a premium service for premium products. The recently updated warehouse management system allows full system interface via the client’s website, allowing seamless order fulfillment to the end customer. The system is also capable of creating bespoke documentation i.e. a delivery note can be designed by InBond’s clients; this would then travel with the order to the end customer. As part of InBond’s continuous improvement and commitment to its client’s, the company strives to deliver the best possible service to meet their requirements. With this in mind InBond is now in the final stages of updating its systems and processes, to achieve the BRC Global Standard for Storage and Distribution & ISO 9001:2008 Quality Management Systems Accreditations. Both accreditations will be in place early 2013. www.inbond.com Tel: 01642 355645

www.ukwa.org.uk

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For all enquiries please contact: Mr F Solomon on 01698 835834 www.malcolmgroup.co.uk


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An expanding supply chain specialist A rapidly expanding supply chain specialist, Seafield developed from its roots as a small southern Irish textile manufacturer in the 1940’s. Today’s dynamic company was born four decades later when investors bought the original Irish company and oversaw a series of acquisitions of independent transport and warehousing companies. Further acquisitions have strengthened the business and it is now wholly owned by private venture capitalists, Bridgehouse Capital. With an ambitious growth target, Seafield has four core business activities – logistics, warehousing, distribution and contract packing. The Head Office is located at Worksop, Nottinghamshire and the company has operating centres throughout the UK. Distribution Seafield operates a modern fleet of vehicles under various commercial arrangements to meet the individual needs of each customer. Flexibility is fundamental whether on a dedicated or shared user basis. Seafield also provides a 4PL overall solution. Warehousing Seafield have 450,000 sq ft of dedicated or shared-user warehousing. All our operations are managed by an advanced warehouse management system providing accurate control over all warehousing activities.

Contract Packing The contract packing division compliments the warehousing sites enabling us to undertake the customer’s returns Seafield Logistics Limited Unit 1, The Point, Coach Road, Worksop, Nottinghamshire, S81 8UG Tel: 01909 475561 www.seafield.co.uk Business contact: Natalie Holt Email: natalie.holt@seafield.co.uk Facilities available: Seafield operates warehousing and distribution from sites at Worksop, Ashbourne, Aylesham, Leeds, Winsford, Scunthorpe. Distribution is UK and Europe with ROW deliveries provided via our partner. Seafield has circa 130 vehicles mainly 44 tonne articulated vehicles, tankers, tippers and tautliners. Rigid vehicles at various sizes most equipped with tail lifts. Range of services offered: • Warehousing, dedicated or shared user • Design and build • Transport, dedicated or shared user • Added value services including: Waste management; Call centre management; fulfilment/e-tailing/mail order; Quality Control; Co/re-packing; Inbound consolidation; Supplier management; VMI stock • Freight Forwarding • Bulk Tanker Transport Warehousing space available: Seafield has 450,000 sq ft of warehouse space across three locations.

www.ukwa.org.uk

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Niche companies going global The world is becoming a smaller place and in 2013, nowhere will this be more evident than in manufacturing, says Bernard Molloy

M

anufacturing has gone global. But this is not globalisation in the sense of simply outsourcing the fabrication of goods to distant places where wages may be lower than in the West. The whole notion of the way products are designed and made has entered a new and exciting era, where networks of niche players collaborate and work together across widely dispersed geographies. Products may now be designed in one location, built in another and assembled from components sourced from anywhere in the world. These are some of the ideas and observations of one of the leading writers on contemporary manufacturing, Peter Marsh – a journalist for the Financial Times. His new book ‘The New Industrial Revolution: Consumers, Globalisation and the End of Mass Production’ describes how Western economies are learning to love

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manufacturing again by leveraging the expertise, skills and design excellence found in abundance in niche manufacturing firms. Using new technologies and global supply networks, niche enterprises are able to operate on a global scale by connecting with partners in other parts of the world to create new and unique products. Interestingly, he explains, it is commonplace for companies with particular skills and expertise to develop in close proximity to each other, creating clusters of niche companies. Remarkably, in Poole, UK, there are two of the world’s largest makers of air spindles - highly specialised devices that use bearings formed of gas molecules and which are used in small electric motors. These companies are exploiting their niche skills on a global basis. Another phenomenon he eloquently Continued on page 28

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>IVS ½ RMWLIH stock – 100% availability

Pavundeep Surana gets it exactly right – every time 7SQI GLEPPIRKIW HIQERH QSVI XLER NYWX IJ½ GMIRG] ¯ XLI] HIQERH MQEKMREXMSR 7S [LIR [I RIIHIH XS ½ RH E [E] XS WYTTP] TIVJIGX VITPEGIQIRX FYQTIVW XS QEXGL TIVWSREPMWIH WTIGM½ GEXMSRW [I LEH to be creative – and we were. ;I RS[ QEOI XLI ½ RMWLIH FYQTIVW [MXLMR SYV S[R [EVILSYWI with exactly the right design to suit the lights, sensors and other STXMSRW SVMKMREPP] WTIGM½ IH JSV XLI ZILMGPI ¯ SR HIQERH %RSXLIV example of Unipart thinking – getting it right on time.

For more information about our approach to manufacturing and logistics please visit

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Continued from page 26 describes is how we have moved from lowvolume customisation to high-volume customisation, and how we are now entering an era of ‘mass personalisation’. This new phase in manufacturing offers the ability to produce not far off unique products, made to precise personal requirements, and done so on a large scale. Such a paradigm shift in the way we manufacture places a heavy emphasis on the creative structure and ‘knowledge based’ operating capabilities of the supply chain (network). Clearly, there is a tremendous opportunity for niche companies to project themselves onto a developing world stage of manufacturing. But the key will be in developing supply chains that are aligned to a more networked way of working. These supply networks will have to be agile, flexible and easily connected to new partner organisations as opportunity prescribes – but critically, they will have to be capable of meeting needs on a global basis. However, niche manufacturers looking to move beyond domestic markets need not be constrained by a lack of global supply chain infrastructure, IT capability or the expertise required to effect the movement of products between partner sites. These supply networks exist already. Unipart Logistics has a large global

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footprint established over recent years through managing the distribution and fulfilment of manufactured goods, parts, repairs and returns for a growing number of industry sectors - including retail, technology, consumer products, automotive and defence. We have the ability to serve other markets from a single distribution centre, thus creating multi-market hub capabilities. Over the last 20 years Unipart Logistics has worked with Jaguar Land Rover to provide a full automotive parts service including sourcing, storing, processing and despatch of parts from 17 distribution centres across the globe to over 850 Jaguar dealers in more than 60 countries. Our teams provide dedicated customer service, procurement, pricing, parts marketing and finance support, to ensure that the right part is in the right place at the right time, 24 hours a day, seven days a week. Partnering with a logistics service provider that has an existing global footprint of multi-user sites and has the knowledge to bring collaborating enterprises closer together, gives any niche company a global footprint of their own and a capability to do business were business takes them. Bernard Molloy is global industrial logistics director at Unipart Logistics.

www.ukwa.org.uk


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1x10 mbar/l/s – the pressure of sealing and delivering

Ravi Sangha is used to pressure – he can’t work without it When you are manufacturing fuel tanks for the world’s most prestigious and high-performance cars there is always pressure to perform – but we take it one step further. Every fuel tank is pressure-tested using helium – which is about 1000 times more sensitive than tests using light. And like everything at Unipart, it is carefully and accurately measured, to leaks rates of 1x10-6mbar/litre/second. Then, having sealed them, we deliver them. Right on time.

For more information about our approach to manufacturing and logistics please visit

www.unipartlogistics.com www.unipart.co.uk

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Jungheinrich announced as CEVA’s top supplier in Northern Europe ABOVE: The Jungheinrich Group's Joachim Kiel, Vice President Key Account Management (centre, right) and Tony Porter, Divisional Sales Manager of Junghenrich UK Ltd (centre, left) receive the CEVA Award from CEVA’s Chief Operating Officer, Bruno Sidler (left) and Peter Dew, CEVA’s Chief information Officer (right)

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t a ceremony held in Spain, CEVA Logistics, one of the world’s leading supply chain management companies, named materials handling solutions specialist Jungheinrich as its Northern Europe Supplier of the Year. Jungheinrich won the prestigious award in recognition of the seamless high standard of service and support it supplies to CEVA across multiple geographies. The award was accepted on behalf of the Jungheinrich Group by Joachim Kiel, Vice President Key Account Management of Jungheinrich AG, and Tony Porter, Divisional Sales Manager of Junghenrich UK Ltd. Jonathan Morris, Jungheinrich UK Ltd’s Sales Director - Corporate Accounts, commented: “CEVA presented us with this Award because our account management approach and structure allows CEVA to benefit from the same high levels of service and customer support across international boundaries. “We are able to provide this because

Jungheinrich has a well established direct network of International Key Account teams offering high quality products and processes globally. “Therefore we retain ownership of our downward supply chain and are able to offer a uniform standard of service across CEVA’s business.” Launched in 2011, CEVA’s Global Supplier Awards are designed to recognize best practice and excellence among CEVA’s supplier base worldwide and to honor organisations which support its quest for Impeccable Execution. This year’s event, was hosted by CEVA’s Chief Operating Officer, Bruno Sidler, Chief Information Officer Peter Dew and Chief Procurement Officer Simon Boggis, took place in CEVA’s multi user eco-sustainable site in Ontigola, outside Madrid and was attended by approximately 50 suppliers from around the world. Winners of other award categories included TNT (Road Supplier of the Year) and Cathay Pacific (Air Supplier of the Year).

www.ukwa.org.uk


3PL TODAY 2013_ukwa 2 column 03/01/2013 10:45 Page 31

www.rgflogistics.com

If you are looking for a haulage company in Birmingham or indeed, nationwide, RGF Logistics are the answer. With a dedicated fleet of modern vehicles and four UK distribution warehouses, RGF Logistics are one of the UK's most dedicated and professional hauliers.

WAREHOUSING SPACE AVAILABLE: Up to 5000 racked locations in Corby with 60,000sqft of bulk storage in Birmingham

Magnum house, Valepits Road, Garretts Green, Birmingham, B33 0TD


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Two million square feet of strategically located warehousing space Bibby Distribution is one of the leading logistics providers in the country. The company operates from more than 100 locations across the UK, employ approximately 2,500 people and operate 2 million square feet of warehousing space which is strategically located throughout the UK. Bibby’s core fleet travels tens of millions of miles every year and is made up of an extensive range of vehicles to suit its clients’ needs. Bibby provide customers with contract logistics, warehousing, distribution, systems integration and added value services. The company’s goal is a simple one; to enable clients to drive full value from your supply chain. Bibby have multi-sector expertise and serve a variety of markets taking into account the nuances and individual complexities of every one, including • Food & Drink • Food Ingredients • Paper & Packaging • Dairy • Automotive • FMCG • Industrial

Bibby Distribution Ltd 105 Duke Street, Liverpool, L1 5JQ Tel: 0151 794 1074 www.bibbydist.co.uk Business contact: Ian Firth Email: ian.firth@bibbydist.co.uk Facilities available: Bibby Distribution has 105 locations, 2,400 road assets and 2 million square feet of warehousing space. Range of services offered: Bibby Distribution provides the following services; Contract Logistics; Distribution; Warehousing; Systems Integration; and Value Added services. Warehousing space availble: Two million square feet

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Bibby share best practice across industry sectors from Automotive to FMCG, and the way the company does business is always the same - high levels of service delivered by dedicated, enthusiastic, driven people. Many of Bibby’scustomers have been with Bibby for 10 years or more. As their businesses have grown bigger and better, so has Bibby’s.

www.ukwa.org.uk


3PL TODAY 2013_ukwa 2 column 03/01/2013 10:45 Page 33

3PL Today

Communications is the Key LocateIT from Clydebuilt Business Solutions is a first class warehouse management system that provides you with complete confidence that your warehouse operation is under control. Communications with customers is a vital component for on-going business success. As well as great warehouse management, LocateIT WMS facilitates better communications in many ways, from simple reports and information on demand to complex integrations. At the highest level, full two way interfacing between you and your customer’s ERP system allows full synchronicity between systems in a robust, seamless, appropriate, and above all, automated way. Clydebuilt is happy to support clients by providing advice in this arena, giving valuable input that has helped many of our customers secure significant new business wins. Integration automation is a key for future growth, with all parties experiencing an increase in accuracy relating to business data, and a reduction in labour costs attributed to saving time. This is invaluable as costs need to be driven out of the supply chain during these difficult times. Most recently Clydebuilt worked with Simmonds Transport to integrate their LocateIT system with NOM

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Dairies SAP system. The successful project facilitates a faster, real time flow of information between the two systems. What’s more, NOM are delighted with the improved service they are experiencing and have reported time savings of up to 80% on receiving and unloading pallets and available within SAP! Speaking of the integration, Neil Simmonds from Simmonds transport said, ‘Fantastic. It’s the sort of investment that not only saves the company money, but also helps drive the business forward’. The addition of the Haulier TMS to our product portfolio has strengthened our canon and allows us to offer a first class WMS with a comprehensive Traffic Management System, if required. The benefits of using the joint solution are immense, and you can be rest assured that you won’t be compromising on the same great features as standard for warehouse control. Clydebuilt Business Solutions Ltd supply comprehensive software solutions to help streamline your warehouse processes. For more information contact webinfo@clydebuiltsolutions.com .

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WAREHOUSING & LOGISTICS INTERNATIONAL www.warehousinglogisticsinternational.com

A personal and friendly service Airfield Warehousing Ltd., near Peterborough, has been providing storage solutions for over 30 years. This small established company offers a personal and friendly service. Airfield Warehousing has over 110,000sq ft of purpose-built dry, secure warehousing space with large areas for outside storage and can offer long and short term storage contracts for both palletised and containerised goods, as well as being able to arrange the transport and distribution of your goods. Airfield Warehousing Litd’s warehouse handling services include container destuffing and restuffing facilities. The company has regular warehouse handling facilities for smaller jobs or those requiring ultimate care and its skilful handling operators combine accuracy with care and

speed. Airfield use the latest computerised administration and stock control systems to keep track of items each day. Airfield’s comprehensive warehouse transport and distribution services are arranged with preferred haulage associates to suit each client’s requirements. A fully calibrated, ministryapproved weighbridge to provide accurate system logged warehouse transport information is used. Airfield provide safe, sound and secure pallet storage as part of our comprehensive warehousing and storage services. The company fulfil your overflow pallet storage requirements or large deliveries from within the UK or overseas and store pallets or bulk deliveries iwithin its open plan warehouses, pick the goods to your individual requirements for despatch and arrange the transportation as necessary.

H S I T I R NG... B T GREA RACKI www.ukwa.org.uk

0800 169 5151 www.link51.co.uk

AIRFIELD WAREHOUSING LTD POLEBROOK AIRFIELD, POLEBROOK, OUNDLE, PETERBOROUGH, PE8 5LY Tel: 01832 272891 www.airfieldware housing.com

The UK’s largest manufacturer of Pallet Racking, Shelving and Lockers

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:$5(+286(6 6725$*( ,1'8675,$/ 2)),&( 81,76 Roseland Business Park has unrestricted private access to the A1 from its rural yet accessible and central location. Flexible leasehold terms are available on units ranging from 3,000 - 62,000ft2, extensive areas of open storage and development plots

ranging from 1.5 - 24.5 acres. A permanently manned entrance provides enhanced security and discretion, while the 700-acre brownfield site allows for bespoke design and build. Whatever your requirements, we can help.

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