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Rank Hovis
Outsourcing Distribution
With an annual output of more than one million tonnes, Rank Hovis Limited (RHL), the flour milling division of RHM, accounts for around 30 per cent of the UK flour market. Flour is produced at eleven mills across the UK, four of which have on-site bag packing and warehousing facilities. In addition, there is a processing plant at Cambridge, and dedicated delivery depots in Northern Ireland and the West Country. From these facilities, bulk and bagged flour is distributed to RHL’s 2,000 UK customers. But, in a highly competitive marketplace with margins constantly under pressure, were these resources being used to best effect?
Rank Hovis’ management identified that operational efficiencies and cost savings could be realised through a strategic review of their outsourcing requirements. To organise and manage the process, Davies & Robson was engaged to help in the sourcing and selection of an operator who could provide a solution to undertake all warehousing and transport operations to RHL’s UK (excluding Northern Ireland) customer base. From the outset, it was agreed that the chosen solution must:
Achieve RHL and customer standards
Achieve required customer service levels
Provide a flexible approach to adapt to changing circumstances
Exhibit strong implementation plans minimising risk to the business
Be cost effective
Provide for continuous performance improvement
Produce accurate and consistent management information
Davies & Robson and the RHL team worked together at every stage of the process, defining the scope and terms of the overall exercise, structuring and compiling the RFQ, identifying possible suppliers, analysing responses, and handling the negotiations leading to final selection and contract placement.
National Logistics Controller, John Redshaw, stated: “With the help of Davies & Robson, the five-month process happened on time, efficiently whilst being objective and professional throughout and because of this we were able to obtain the best possible solution to meet with our requirements”.
www.rankhovis.co.uk
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