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Rockwool
Contractor Performance Review
With a unique, high-tech manufacturing process, Rockwool Ltd is the UK subsidiary of a major European producer of insulation materials for both the retail and industrial markets. Their products are characteristically light and high-cube, resulting in relatively high transportation costs.
Rockwool contracted-out delivery of their products to a traditional haulage company, who have interfaced well with the virtually stockless supply chain. However, competitive pressures required Rockwool to minimise these costs and Davies & Robson was asked to assess the contractor’s performance and cost levels prior to contract renewal.
A detailed operational and cost appraisal, together with a range of suggested operational enhancements enabled Rockwool to gain a better understanding of their contractor’s performance. A revised contract was negotiated, with no increase in charge levels, but with a radically different trading relationship where the provider has the role of Logistics Managers rather than Haulage Contractors, and where overall cost reduction is key performance target.
www.rockwool.co.uk
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