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PZ Cussons
Warehousing Strategy
PZ Cussons, a leading manufacturer of soap, personal hygiene and household products, including such well known names as Carex and Imperial leather, is a long-established enterprise with a distinguished track record for product and service quality.
The company’s production facilities are in Nottingham (bar soaps and aerosols) and Manchester (liquid products). In addition, a significant amount of product is sourced from external suppliers. The warehouses however, were remote from the manufacturing sites. This arrangement sucked in considerable investment and, because of the diverse locations, the business recognised that general efficiency improvements would be available if a more consolidated warehousing strategy could be implemented. As a consequence, the business decided to review the options for either:
Outsourcing its warehousing, and primary and secondary distribution
Building a new “in house” NDC situated at or near one of the manufacturing sites
Davies & Robson was commissioned to model the required designs and costs of various new-build warehouse and integrated manufacturing site combinations and, separately, to conduct a tendering assignment to identify the third party costs of managing and operating the total supply chain.
Armed with this information, PZ Cussons was able objectively to assess the benefits and all associated operational and financial issues of the design and build of third party options. Based on an overall business case, the decision was made to outsource the operation because it would demonstrably deliver a greater degree of operational and financial flexibility.
www.pzcussons.com
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