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Case study

We pick up the pace

The client is a leading importer and retailer of sports equipment and clothing. With full coverage across the UK, the business has grown and continues to grow rapidly.

£1 million

Cash flow improvement
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The challenge

Our client needed to improve its control of inbound transportation, inventory management and Customs compliance.

They make transactions with many suppliers, including in South and East Asia and the USA, and deal with varying quantities from full containers to groupage shipments.

The client approached Woodland Group to help. Our supply chain solutions team worked closely with them and quickly identified what was needed. This included improving their control and visibility of inbound shipments by ocean and air, as well as reducing their inventories.

They needed to consolidate shipments to UK warehouses and totally reorganise their Customs administration, minimising their financial exposure to VAT and duty and improve cash flow.

We would have to introduce KPIs and transparent management reporting for the logistics process, measuring against qualitative and quantitative parameters. Not least, we had to make major reductions in logistics expense, from vendors through to final customers.

How we delivered

We offer expert personalised solutions to help your business succeed. We delivered the following services to help this client's growth.

Our services in detail

The solution

We conducted a thorough review of processes which generated shipments from suppliers worldwide, including origins, volumes, frequencies, seasonality, lead times and costs. We investigated existing Customs processes, and the classification and origins of all imported products.

 

To further develop inventory planning, we established service and lead time objectives, as well as information and tracking needs, and necessary information on material flows. In addition, we reviewed the available transportation options from supplying markets.

We selected the optimum price/quality mix for both FCL, LCL and air services. Where feasible – and without materially affecting lead times – we consolidated shipments to reduce costs.

We made real-time tracking information available through Woodland Group software, giving them access to individual client order numbers within shipments through our website. This provided a clear view of each purchase order and its contents, from date raised through to final delivery.

We set up the continual review and amendment of Customs classifications. The entire entry regime was transferred to our Customs Freight Simplified Procedure. Under this, imported products are held VAT and Duty free in bonded warehouses until recovered from stock for delivery. All Customs transactions are conducted through direct electronic links.

What’s more, we established quantitative and qualitative KPIs, and routinely reported performance through Woodland Group management reporting.

The team

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Dan

Operations
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Ian

Quotes
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Jenna

Sales

The result

With our support and expertise, we significantly reduced our client’s inbound freight costs, as well as reducing and stabilising lead times.

The information we have supplied on material flow status has resulted in improved purchase and inventory planning. Additionally, the client’s cash flow improved by over £1 million pounds through CFSP.

  • Reduced customs administration costs.
  • Established a process of continuous improvement through management reporting.
  • Regular quality and process review meetings were put in place.

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