Pallet/Parcel Networks Case Study
Illuminated decision
When Crompton Lamps switched to UPN’s pallet net- work, it not only improved customer service but also made a signifi cant improvement to its green credentials.
C
rompton Lamps is one of the oldest lamp businesses in the world and was founded by Colonel Crompton in 1878.
The business grew consistently and was acquired by Hawker Siddeley and then the industrial conglomerate BTR, dur- ing 1991. Crompton Lamps was part of Crompton Lighting, which was acquired by Cooper Industries. Following a strate- gic review, Cooper Industries decided to change direction and the company was purchased by the management in 2006. Today, the company is involved in the development of low energy lighting which is evolving fast and driving growth. Annual revenues are around £15m and expected to grow to around £20m over the next three years. The business provides a fast-moving range of over 1,000 products distributed nationally to major wholesalers and large in- dependent distributors. The smooth operation of logistics is critical to its on-going success.
50%
reduction in paperwork aſt er Crompton Lamps switched delivery partner
36 July 2012 Storage Handling Distribution
Andrew Hiscoe joined the business as operations director, following the man- agement buy-out. He explains: “When I joined, distribution was managed in partnership with the parent company. Following the MBO, we needed a suc- cession plan. Essentially, my task was to fi nd a new partner to take us forward.” Following a detailed business review, the company decided to fi nd a local partner to manage deliveries to over 800 UK customers and guarantee delivery within three days to any of them. The business is highly seasonal in line with daylight hours, making winter the busiest time. Daily freight volumes often vary by as much as 100%, due to the nature of the business.
POWER OF PARTNERSHIP
Andrew continues: “With such peaks and troughs in customer requirements, we needed a scalable solution. After a review, we appointed our local UPN depot, Farsley Transport. By improving customer service, we would attract more orders and increase customer satisfaction. Following the MBO, it was critical that customer service was seen to improve.” Farsley approached Crompton Lamps to discuss putting the freight through UPN,
www.shdlogistics.com
Pallet partners: Andrew Hiscoe (left) with Neil
Chappelow, MD of Farsley Transport.
as it was confi dent that it could help improve effi ciency and customer service. The business had never used a pallet network, with all freight delivered direct using Farsley’s own vehicles. Andrew explains the key issues: “Our products are very fragile and it is vital that goods arrive in perfect condition. Dropping a pallet or damag- ing it would be a disaster, so we were cautious about any network operation.” Andrew’s initial concerns were unfounded. He continues: “The network model is much more effi cient, which was in line with our green approach to business. It was also clear that the technology supporting UPN could deliver real benefi ts to our customers. “We decided to test the service before making any major commitments. The results were excellent and we made a complete switch shortly afterward. Today, we have sent over 8,000 pallets to our customers, who are delighted with the service. The online KPI reporting allows customers to see how good the service is. We have reduced paperwork by at least 50% help- ing to improve our green credentials. With UPN and Farsley, we can deal with growth and cope with demand fl uctuations.”
www.u-p-n.co.uk
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