Homebase/Unipart shd excellence in logistics l
now need less warehouse space and because Unipart Logistics have been flexible in being able to accommodate additional ranges from other DCs we have been able to rationalise our network infrastructure." Unipart Logistics operates the National Import Centre (NIC) for Homebase at its shared user facility in Cowley, Oxford, on a contract that has been in place since early 2006. As a large proportion of the retailer’s product range is sourced from overseas, the smooth and efficient running of the facility is critical to the trading performance of the company. Lean thinking applied through the ‘Unipart Way’ has provided a sound methodology for delivering operational improvement by taking out waste from processes, whether it be time or unnecessary movement, to
create a highly efficient warehouse operation capable of maximising on- shelf availability across the stores network, at the lowest cost.
Growing footprint
The success of the relationship between retailer and logistics service provider has seen Unipart Logistics’ role grow substantially over the last five years, to a point where it is now responsible for between 30–40% of the volume of goods going to Homebase stores. The footprint of the NIC has increased from 160,000ft2
to 440,000ft2
over that period as Homebase’s confidence in the service provider’s ability to deliver has increased and further product ranges have been transferred over.
Nigel Basey describes how ‘Project Bentley’, the transfer of the pots and
tiles ranges to the Cowley facility, has benefited the company. "Absorbing those ranges into the Cowley operation demonstrated great flexibility, without any major increases in space and cost," he says. "Productivity and efficiency of the operation was maintained throughout, and TUPE transfer was effected extremely smoothly and competently.
"Due to this collaborative approach, Homebase has seen a 30% reduction in shrinkage. That’s quite an improvement."
But importantly, the service to stores was seamless, which was a big risk factor when we entered into the project."
Along with the large cost savings and efficiency gains from rationalising the network, Homebase has also benefited from Unipart Logistics’ analytical approach to tackling issues around product shrinkage in the ‘pots and tiles’ supply chain. Shrinkage and damage were costly problems for Homebase. Andy Pearce, account manager for the Homebase contract at Unipart Logistics, explains: "We looked at how the product was being brought in from Turkey and the Far East and worked with a cross-functional team at Homebase to understand where the losses were occurring and made interventions to address the issues, including the development of better packaging solutions from factory to store.
"We also paid close attention to the way the product was handled at the DC and in store," he adds. "Due to this collaborative approach, Homebase has seen a 30% reduction in shrinkage on those products. That’s quite an improvement."
Dramatic increase in skus Giving an indication as to the scale of the ramping up of operations for Homebase, Pearce says: "When we first started we had 400 skus and had a weekly throughput of about 60,000 cases – that’s 30,000 in, 30,000 out. Now a normal week is 300,000 cases in, 300,000 out, and we will pick 60,000 cases a day. So we are doing double in a day what we were doing for a whole week five years ago."
The number of skus has increased dramatically too, rising to the present
Continued on page 18...
www.PressOnShD.com January 2012 ShD 17
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