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25%Reduction in transportation costs from North Africa
After they faced pricing pressures, a substantial part of the manufacturing process migrated to North Africa and South East Asia.
While fabric continued to be largely sourced in the UK, products started to be made up overseas and imported as finished garments.
This led to reduced costs. However, our client faced new challenges in servicing their retailing customer. They needed to minimise lead times and transportation costs, all while ensuring garments were maintained in excellent condition.
The client wanted to maintain full visibility and control over product movement. Not least, they were looking to manage Customs processes to minimise their exposure to VAT and Duties.
How we delivered
We offer expert personalised solutions to help your business succeed. We delivered the following services to help this client's growth.
Working with the client’s management, Woodland Group’s supply chain solutions team procured and analysed data on all movements in and out of the UK. This covered carriers, frequencies, volumes, lead times and costs, plus characteristics and handling requirements of finished garments.
At the same time, we reviewed existing Customs management with an emphasis on material flows out of the UK and their return as manufactured clothing. We also reviewed classifications and opportunities for VAT and Duty abatement.
Following quantitative and qualitative data analysis, we made key improvements to supply chain logistics. North American shipments were transferred from truck to ISO ocean container. We also helped achieve high-capacity utilisation through string and loop hanging configuration.
We assessed carriers from Asia and changed processes to produce higher efficiency in cost, lead time and quality – and real time tracking was introduced to provide visibility and control over product movements.
Utilising Woodland Group software, we implemented a fully-integrated Customs management process. This featured:
- An OPR regime to take full account of outbound fabric movements.
- Customs warehouse for inbound shipments, achieving VAT and Duty abatement until removal from warehouse for sale to retailer.
- Electronic connectivity between Woodland, client and Customs, managed by Woodland Customs specialists.
- KPIs and management reporting against both quantitative and qualitative parameters.
We helped to reduce transportation costs from North Africa by 25%, and made substantial savings from Asia. Our automated systems reduced VAT and Duty management overheads by 30%. Our management reporting now gives them enhanced control and a real opportunity for continuous improvement.
- Our integrated customer management process improved cash flow and offered the benefits attributed to zero payments of VAT and Duty on rejects and returns.
- Provided our client with clear visibility of their product in the supply chain.