03 May 2011
Supply chain review feeds bottom line
Animal feed producer Wheyfeed has improved supply chain service levels and increased profitability, after a review of its UK-wide operations.
Wheyfeed asked supply chain consultancy Davies & Robson to look at its operation, including its nine sites and 30-strong vehicle fleet, to identify opportunities for improvement.
As well as supplying its own range of animal feeds, Nottingham-based Wheyfeed also provides bulk transportation of by-products from food and other manufacturing operations to farms and animal feed operations throughout the UK on behalf of major manufacturers including United Molasses, formerly part of Tate & Lyle.
Davies & Robson identified key improvements in Wheyfeed's planning and execution of collection and delivery, including the introduction of measures to improve vehicle fill and to allow profit and loss for each vehicle shift to be accurately calculated. As a result, Wheyfeed now uses a number of sub-contractors, supporting a reduction in the core vehicle fleet.
Wheyfeed's managing director, Stuart Bridge said: "Whilst the implementation of Davies & Robson's recommendations has not been entirely without pain, this is far outweighed by the benefits, which are significant and have helped to secure the future of our business, as well as providing a platform for continued development.
"In addition to a fresh pair of eyes, Davies & Robson brought experience and knowledge of current logistics best practice far beyond our own. We were also impressed by how quickly we began to see the results of their recommendations and estimate that the payback period on our investment in their services has been within the year."
Andy Smith, senior consultant at Davies & Robson, said: "Niche businesses such as Wheyfeed are able to meet very specific needs which few larger providers can accommodate however, must be in good financial shape in order to give major customers the security they demand.
"As small logistics providers continue to struggle in the tough economic climate, in many cases, an expert review and commitment to act on any recommendations can rapidly and substantially reverse their fortunes."
Davies and Robson
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