Case-1 A Sweet Solution For Coca-Cola Hellenic Coca-Cola Hellenic Bottling Company S.A.

, which operates in 28 countries, engaged Total Logistics to advise on the building of a storage facility in Romania that would meet its high standards of environmental protection and its needs for efficiency, cost-effectiveness and flexibility. Total Logistics undertook analysis of the processes at the bottling plant which currently operates six production lines, and developed a planning model, taking into account the peak production and dispatch volumes and the projected demand of 198,000 units per hour. Working with local management, the Total Logistics team considered several manual and automated options before finally recommending an automated high-bay storage solution. Total Logistics provided an initial design, taking palletized products from existing production lines via a main conveyor and into a storage area with the capacity for 35,000 pallets. The high-bay cladrack warehouse will be served by 11 automated cranes to create an efficient retrieval system. Peter Roan, Director at Total Logistics, said, Coca-Cola Hellenic identified its plans to expand capacity in the future and needed to know if its existing site could facilitate its projected development and have the capacity for additional storage. Our specialist team examined the existing processes at the Ploiesti plant and looked at various options for providing increased storage and the associated benefits. We identified the optimal solution and subsequently ran an invitation to tender which led to the appointment of FKI Logistex as the solution provider. The new automated high-bay system, which opened in October 2009, is thought to be the first in Romania and enables the facility to handle 24,000 returnable glass bottles (RGB) per hour, 120,000 plastic bottles (PET) per hour, and 71,000 cans per hour across the six production lines. The system can handle up to 290 pallets per hour on intake and 490 pallets per hour for dispatch. George Macovei, National Logistics Manager, Coca-Cola Hellenic Romania, said, We wanted a highly sophisticated solution to our existing and future storage needs that complement the technologically advanced bottling operations at Ploiesti, and Total Logistics provided the answer and professional support we needed. Impressively, the high-bay storage system they designed and helped to implement allowed bottling operations to continue without interruption. Following the success of the project, Total Logistics has been appointed by Coca-Cola Hellenic to carry out further projects, in Romania and in other countries.

Case-2 Serco Case Study

Total Logistics was appointed by FTSE100 service company Serco to provide logistics support for the London Cycle Hire scheme (Barclays Cycle Hire), an initiative pledged by the Mayor of London as part of his election manifesto. The scheme launched successfully in July 2010 and was positively received by the public, with one million journeys made in the first 10 weeks of operation. The scheme, designed to encourage a healthier way of getting around London, as an alternative to tube or bus, comprises 400 docking stations, with 10,000 docking points and 6,000 bikes around the capital. Serco was awarded the contract by Transport for London (TfL) to establish and operate the scheme, and partnered with Public Bike Service Company (PBSC), suppliers of the kit used for the Montreal cycle hire scheme, to provide the physical assets. Serco enlisted Total Logistics to develop the logistics plan for the installation phase and to help appoint a third party logistics (3PL) partner to carry out the receipt, consolidation and distribution of the PBSC equipment. Total Logistics support to the project was focused on four key stages: Preparing a logistics plan to support the receipt, assembly and delivery of docking stations, bikes and software to the street for installation Managing the tender process to select a suitable staging warehouse and operator to receive, store and assemble the assets Monitoring the operators performance on behalf of Serco for the duration of the contract Preparing a launch plan to distribute all of the cycles to the docking stations overnight prior to the launch. Initiation phase: logistics planning After collating the proposed receipt and installation of equipment schedules, Total Logistics developed a movement and space plan to provide the requirements specification for a staging warehouse. Total Logistics advised as subject matter experts throughout the project. Development: staging warehouse

Total Logistics ran a competitive warehouse tender, resulting in Kuehne & Nagel (K&N) being appointed as the preferred 3PL supplier. K&N was selected due to the quality of its service offering and competitive and flexible pricing structure. The logistics operation was located in Harlesden, supporting the operational base in Islington, which made it easy for regular face-toface meetings and progress updates. Monitoring: 3PL performance Total Logistics developed a framework of Key Performance Indicators (KPIs) to monitor K&Ns service, performance and cost. These KPIs were reviewed on a weekly basis. Total Logistics managed the schedule to evolving requirements and altered the workload accordingly. The launch: cycle distribution Due to the high profile nature of the project, the launch required 4,400 bikes to be delivered to the docking stations overnight, ready for the system to go-live at 6am on the day of the launch. Total Logistics developed a number of options to ensure distribution was achievable and developed a transport model to provide efficient resource levels and timing of tasks to allow a delivery schedule to be produced. Total Logistics supported the distribution process and the required 4,400 cycles were in place across over 300 docking stations ready for the official launch by the Mayor of London at 07.30am on Friday 30th July.By the morning of the launch, over 12,000 members were signed up to the scheme with over 6,000 keys activated. Les Beaumont, project director at Total Logistics, said: This has been a really exciting project; everyone who worked on it was privileged to be a part of such a revolutionary scheme and it has certainly stretched our teams thinking. Its not every day that we are asked to develop a plan to manage such a high-profile operation with only one overnight opportunity for success. Alan Stannard, Contract Director, Serco, commented: Total Logistics proved a great support through the complicated logistics process and the teams expertise played an invaluable part in the successful launch of the scheme. Opinions of the scheme from members of the public on twitter and in the press on launch day:

Case-3 Adidas Case Study European supply chain specialist, Total Logistics, provided a supply chain rationalisation solution to adidas, leading worldwide supplier of sportswear and equipment. The successful project consolidated four distribution centres into a single, new 30,000 m2 facility at Trafford Park in Manchester, providing cost savings as well as capacity to deal with future volumes and expansion. When adidas, one of the global leaders in the sporting goods industry, took over sporting brands Reebok and Rockport, the company wanted to take advantage of the synergies and efficiencies that could be achieved by consolidating inventory from five key brands addidas, Reebok, TaylorMade, Rockport and Ashworth. At this time, adidass Northern European operations, serving leading retailers in the UK, Ireland and Benelux, was split between four conventional warehouses, each using different systems and processes, with the overspill being handled by third parties. An analysis of the merged companys distribution network highlighted that an initial investment in supply chain rationalisation would achieve economies of scale, providing benefits which could shape the adidas distribution strategy for Europe and wider markets. Total Logistics, appointed as lead consultants on the project, recommended and oversaw the rationalisation of four distribution centres into a single 20 million automated site in Trafford Park, Manchester. Following Total Logistics recommendation, they developed a concept for a 30,000 m2 fully automated facility. This was implemented in just 18 months, including the implementation of a new warehouse management system. The procedures took into account the current requirements of all five brands, the new facility layout and requirements this brought, as well as the overarching adidas warehouse management system requirements. The Trafford Park facility has become the best practice benchmark and set a framework for future adidas implementations throughout the globe. Some of the technologies used were new to adidas, and are now being adopted in other facilities within the adidas group. Andy Keith, managing director at Total Logistics said: Consolidation within any mature market such as sports retailing, often results in legacy systems being plugged together in the hope that bigger will mean better. As was proven with the adidas project, an understanding of the supply chain processes at a detailed level, can identify potential efficiencies on a scale that can provide significant results. The key to the success of the adidas project was designing a system to support the organisations need for flexibility. Through automation, the new facility is able to handle orders for a range of customer formats, such as small orders for small stores, through to major launches

of new football club kits. The initial aim for the new site to increase productivity by 66 percent was actually exceeded by almost 100 percent. The automated system handles over 65,000 SKUs and has allowed the area allocated to manual picking to be cut by two thirds. The automated system delivers further efficiency benefits over a manual operation as the seasonal nature of the business means the resource schedule continually changes. More than 40,000 loose items can now be picked per day. And, as a result of the space savings, contracted-out value added services have been accommodated in house. Total Logistics successfully managed the entire construction, equipment installation, commissioning and go-live for the automated distribution centre. The project increased productivity and lowered the cost base for distribution in the UK, exceeding the benefits stated in the business case. Tim Adams, global warehousing project director, adidas, is delighted with the success of the project; Due to sheer volume, size and complexity, the project was seen as a tremendous challenge from the outset. Our expectations of the projects value were exceeded and the independent contribution made by Total Logistics was invaluable. Automation has allowed us to handle a lot of volume in a relatively small amount of space, which keeps our overhead costs down. It has allowed us to be far more flexible, enabling a range of possibilities from the picking of cartons to an individual pair of shoes and allows us to achieve greater order accuracy. The system allows us to balance work over several peaks and troughs between brands and enables us to be more responsive to our customers weve been able to turn around big orders in a very short period of time, and customers have fewer deliveries through consolidation.

Case-4 Sit-up Case Study Total Logistics Sources new 3PL Solution for sit-up Systematic approach delivers flexible and effective fulfilment solution sit-up's logistics requirements are driven by the auction and shopping schedules of its channels and by its delivery commitments to customers. Once an auction or sale has been completed, the goods must be picked and delivered to customers on time and without damage. Shipping over three million product items to customers in 2003 alone, sit-up demands an extremely high level of inventory accuracy and a high quality pick and pack operation that can respond to fluctuations in volume and demand. This becomes even more important during sit-up's peak trading period pre-Christmas.Total Logistics was selected by sit-up to assess the options and project manage the right solution. Assessing the warehousing, pick, pack and delivery operations, Total Logistics conducted an intensive period of data gathering and analysis to identify the key logistics parameters. Two separate streams of work concentrated on identifying the best solution for situp: focusing on in-house or a 3PL-based solution. Total Logistics ran a series of detailed resource and cost models to define the right solution that would deliver the required levels of service and flexibility at the lowest cost - including local operational and property costs plus the availability and eligibility for grants and subsidies. Although an innovative in-house proposition was developed, it became clear that a 3PL approach had the potential to offer more flexible solutions to meet sit-up's future growth plans - notably through using large, shared warehouses that could offer additional space as volumes grew and provide synergies through shared resources and infrastructure. Total Logistics ran a comprehensive supplier selection process, resulting in sit-up appointing NYK Logistics (UK) Ltd (formerly New Wave Logistics Ltd) as their preferred 3PL partner. NYK Logistics was selected due to the quality of their service offering and their systems capability; the operation will be based at Grange Park 2, a 20,000m (220,000ft) warehouse just outside Northampton by junction 15 of the M1. NYK operates over 50,000m (540,000ft) at Grange Park and a further 110,000m (1.2 million ft) in other locations also close to the M1 motorway, offering ample space for the future expansion of sit-up's businesses. Since completion of the project in 2003, sit-up's business has doubled in size again and they have taken on another NYK warehouse in Tamworth.

sit-up has seen significant benefits to its business as a result of its relationship with Total Logistics: the development of a stable logistics platform that allows the business freedom to grow; the agreement of a clear strategic path to outsource with a new provider, based upon a solid foundation of business and commercial analysis; plus the identification of a new partner able to offer the flexibility to meet the future needs of sit-up's rapidly growing business. Total Logistics has also developed a framework of Key Performance Indicators that help sit-up to monitor customer service performance over time and deliver the confidence that customer delivery promises can be met now and in the future. Ian Percival is sit-up's, Finance Director: "Our business is developing very quickly and we needed a clear strategy for our logistics operations. We didn't have the time or specific logistics expertise to carry out the exercise in house, so decided to use external expertise. We eventually chose Total Logistics because of the thoroughness of their proposal, their modelling capability and their knowledge of the third-party market. "We needed a practical and flexible solution that would allow us to maintain and improve service levels to our customers. The work carried out by Total Logistics helped us to achieve this: we were impressed by their professional and thorough approach that delivered the project on time and to budget."

Case-5 Grahams Bodycare Case Study Cross-Docking the Supply Chain Provides Growth Platform Tough Retail Environment Today's UK retailing environment is a tough place to be. Household incomes are under pressure from oil price increases that have forced up utility and petrol bills, there are doubts over the property market and uncertainty over possible tax rises. Accordingly, consumers are simultaneously more discerning and cautious and growth in disposable income levels is well down on a few years ago to make the retail environment much more competitive. Some major retailers have sought retrenchment through merger - Boots and Alliance Unichem for instance plus discounters, Internet e-tailers and increased premises rents are having a major impact too. These combined factors are unlikely to ease quickly which means that more than ever, operational efficiency is the key to maintaining competitiveness, developing customer loyalty and exploiting opportunity.A well-established business, Grahams Bodycare is playing the long game and believes that increased efficiency and flexibility at the supply chain level is the right place to add long term value to its bottom line. The company had also reached a timely crossroads: until recently, Grahams had a bulk warehouse and a separate picking warehouse, the lease on which was due to expire. This made for an ideal time to re-engineer the entire warehousing operation and Total Logistics was involved from the outset in scoping the changes necessary. Making Changes Grahams' original warehousing facility comprised a single storey 100,000 ft2 distribution centre and a 39,000 ft2 bulk storage centre with 10,000 pallet spaces in the High Bay; a team of 70 serviced the orders using a range of mechanical handling equipment across two eight-hour shifts each day. The picking operation involved batch picking orders onto conveyors and then using a simple mechanical sorter to separate individual store orders. A number of operational issues had developed that needed to be addressed. The company found that incoming product was not 100 per cent checked at carton level, increasing the risk of signing for goods that had not been received. Inners picking on walkways was creating large amounts of plastic and cardboard waste that was untidy and labour intensive to collect. Plus the walkway layout meant that the distances to pick orders were often excessive and there was a bottleneck at the point of scanning prior to sortation.

The sensible option was to solve all the operational issues by re-configuring the entire warehouse system and in the process, exploring the opportunities for moving to a more cost and space efficient site. In redesigning the warehousing function, it became clear to Grahams that they could save space, time and money by moving to a cross-docking solution. Cross-Docking Cross-docking is an increasingly common logistics technique that rapidly consolidates shipments from multiple sources in order to gain economies of scale in outbound delivery. It essentially eliminates the inventory-holding function of a warehouse while still allowing it to serve its consolidation and shipping functions. Crucially, the incoming shipments are transferred directly onto outbound delivery vehicles to satisfy waiting orders without storing them in between: crossdocked deliveries are typically processed in as little as one hour of delivery. This effectively turns the warehouse into a giant conveyor that is constantly processing orders and replenishment, minimising a company's capital outlay on static stock that's more usually stored in the High Bay. Cross-docking not only ensures one can deliver Just-in-Time (JIT) replenishment at the store or customer level: it also enables the creation of a JIT warehouse that's more efficient with space, resources and capital. Grahams opted for a cross-docking solution to replace its historical 'receive, store, pick and sort' arrangement. Goods would be booked in from suppliers or from the bulk store and immediately fed to a sortation system, which would then sort the products by destination store. Each product would be allocated to stores and sorted in its entirety, removing the need to store residue product. Total Logistics worked closely with the Grahams team to develop a number of cross-dock options for sortation, ranging from manual picking to automated sortation: after assessment and performance analysis, automated sortation in a new, multi-level warehouse was chosen. An Integrated Approach Roy McFarlane, operations director for Grahams Bodycare takes up the story: "Total Logistics has helped us with a strategic re-alignment of our business that has taken two years to deliver from planning through to final implementation. We've been able to move from a 139,000 ft2 footprint of single-storey storage in two warehouses to one of just 80,000 ft2 at our new integrated distribution, warehousing and head office site at Matrix Park. The new High Bay covers 40,000 ft2 with a further four floors of 40,000 ft2 - plus three storeys of office space - to give us a 200,000 ft2 warehousing facility with a footprint of less than half that. We've also been able to halve the shifts to a single eight hour shift per day."

A key element to cross-docking is the technology infrastructure that supports it. Grahams developed their own Windows-based proprietary warehouse management system (WMS)

networked across Dell desktop computers that needs just three people to manage all day-to-day order traffic bound for the retail network. Working with Total Logistics to combine the integrated facility with new mechanical handling equipment and a powerful WMS, Grahams has significantly enhanced efficiency of its distribution operation that can process in excess of 7,000 order cases an hour. A combination of large and small chutes and totes are ideal for the variety of product sizes; loading product onto the sorter on receipt allows a 100 per cent quantity and product verification check that catches any discrepancies early; the removal of storage areas in the picking warehouse has reduced the risk of theft and damage; and overall inventory levels have been reduced by eradicating the need to hold central stock of the main product lines. Plus operator headcount has been reduced delivering savings on payroll; the accuracy of deliveries to the store network is now guaranteed; packaging is removed wherever possible and disposed of at the point of induction to the sorter, reducing the amount of litter in the warehouse - plus a smaller bulk store now integrated into the conveyor system provides capacity for opportunity purchases and seasonal lines. Delivering Business Benefits McFarlane picks up the story again: "Importantly, we've been able to reduce mechanical and manual product handling while simultaneously increasing throughput: product is scanned just once as it enters the warehouse and we've found cross-docking our store deliveries to be 50 per cent faster than before. We poll the stores overnight to collect sales data and our inventory system recalculates the store-by-store stock requirements on a priority basis. Instead of having to commit our 18 delivery vehicles to a daily schedule of deliveries, we can now work on a weekly replenishment cycle that keeps our stores properly supplied between one and three times a week. That means less impact on our drivers, our vehicles, lower diesel bills, lower mileage and reduced environmental impact." Grahams' managing director and co-owner Graham Blackledge is delighted with the results of the two year project: "With the help of the Total Logistics team, we've moved the business to exactly where it needs to be and given ourselves a very solid, high capacity platform to match our growth plans. The warehousing operation is very efficient with a better working environment that's cleaner and quieter. Plus it's good for our people to know that they are working at the leading edge of supply chain management - that in itself ensures that we continue to attract the best people to work here. Retailing faces immense pressures today and the trick to handling those pressures and staying sharply competitive against much larger rivals is 'light-touch' product handling that's geared for efficiency and flexibility."

Total Logistics was also retained to support vendor selection and implementation. The sorter chosen was from FKI Crisplant, with pallet conveyors by Univeyor and the consultancy team worked with Grahams through to completion of the contract and commissioning of the system in mid-2005.Concludes Blackledge: "Another key area where the Total Logistics team has been able to help us has been in contract management where their formal tender process has ensured us value for money - and continues to do so."The result of the project has been a complete recalibration of the way Grahams manages its business that makes the most of efficient warehousing and distribution techniques. The cross-docking system is now delivering significantly higher, more accurate throughput with greater productivity than was achieved before.

Case-6 Nestl Consolidation Case Study Supply Chain Consolidation: When Less is More In light of one of the contracts approaching review and the end of lease agreements at two of the sites, Nestl decided to take the opportunity to review its warehousing and distribution strategy in the UK, turning to Total Logistics to undertake a thorough and independent assessment of its current and future supply chain needs. Ian Hill, Director of Logistics at Nestl UK, explains the background to the project: For many reasons we had reached a point where we were faced with various options on our three-site strategy. The time was right to bring in a fresh pair of eyes to review our distribution network. With our complex mix of dry and wet goods, including water, coffee, confectionery and mix of perishable goods, we wanted to explore what options were there for us and the Total Logistics team was the obvious choice given our longstanding relationship with the consultancy. The main task facing the Nestl team and Total Logistics consultants was to develop a meaningful model by which to really understand the pros and cons of every option that was available. This already complex scenario was made even more challenging due to the diverse and expansive nature of Nestls product range and large number of end-markets. While the York, Bardon and Scunthorpe sites handled foodstuffs including water, confectionery, cereals and coffee, the latter also coped with the huge seasonal demands for confectionery products during periods such as Easter and Christmas. To add to the complex picture, Scunthorpe also used different technologies to service the international export market, dispatching product to Europe and further afield via deep-sea routes.Whereas Scunthorpe was characterised by high density, drive-in racking, with temperature and humidity controls, Bardon and York used automated high bay storage units that did not require as sophisticated environmental management. Peter Roan, Director at Total Logistics, said: This project was complex from a supply chain modelling perspective, as it not only included an analysis of in-bound and outbound flows, transport costs, road links and inventory issues, but also risk and service factors created by any new network proposed. Time was also a big factor here, given the fact that we needed to make recommendations and support the implementation to ensure the client was ready and able to satisfy the crucial peak demand period ofChristmas. In short we had a window of just six weeks to completely review and make recommendations on Nestls UK distribution network strategy.

Total Logistics set to work developing an assessment tool to look at the impact of putting different business streams into the same or new facilities. For example, the benefit of keeping seasonal and export confectionery streams in the same facility as they have largely counter cyclical storage needs, was a major consideration. Another key consideration was quality assurance, as a large number of confectionery items had to be stored at a temperature of 80c and 65 per cent relative humidity.A further element to the assessment model included an analysis of transport and warehousing costs, including inbound and outbound flows. Particular attention was paid to the potential synergies that could be obtained by combining different streams to increase drop size, thus reducing the number of road miles and journeys required.In all, 16 different scenarios were developed based on the existing facilities and other potential locations in the UK.In the final analysis, it was decided that a twin site solution provided the greatest cost saving to Nestl, while enabling it to improve flexibility and delivery performance to supermarkets and other key retailers in the UK and further afield. Although its delivery performance was already at 99.4 per cent, Nestl was confident that concentration to two locations would allow the already high customer service levels to be improved. Due to its central location and existing potential for development, it was decided that the Bardon site was the obvious choice to centralise supply chain operations. However, this decision has meant the closure of the Scunthorpe site, with a major investment programme in place at Bardon, which will increase its pallet capacity from 50,000 to 110,000.While there have inevitably been some job losses due to the closure of the Scunthorpe site, it is expected that up to 40 new jobs will be created initially at the Bardon site, with the possibility of more to follow in associated copacking operations on site.Considerable investment has now gone into the Bardon site to enable it to handle the array of Nestl food and drink products including Kit-Kats, Carnation, Buxton and Nescaf. In addition to this focus, the area of risk management has been key to the teams thinking as the site is updated and fully commissioned. Peter Roan said: While our recommendation to consolidate much of Nestls food and drink distribution under one roof has reduced the overall cost of distribution, the move has enabled the company to combine its business stream and product supply chains to create far greater flexibility.Nestl now has a much more robust logistics operation that will enable it to meet the growing need to deliver more frequent, lower volume drops to retailers. As well as supporting the Nestl team through this crucial period, we were also able to work with them on the risk management issues raised by a twin site strategy, holding a risk assessment workshop. Accordingly, Nestl has worked hard to ensure the design of the new Bardon site takes issues such as fire protection and security very seriously. The communications infrastructure at the site has also been a key consideration during the implementation phase that saw the successful

commissioning of the extension in May 2009 and completion to fit for purpose in July of that year.Ian Hill is delighted with the final outcome of the project. He said: Given the tight timescale and the perishable nature of our products, there was potentially a lot at stake by migrating many of our famous brands to the Bardon site. The Total Logistics team added significantly to the process, offering strategic insights and practical support along the way.

Case-7 Wolseley Case Study Wolseley UKs Sure Touch How to Reduce Supply Chain Costs Without Compromising Quality Introduction Supply chain director Derek Robb took up this post at Wolseley UK in April 2008, just as the first signs of global recession were being felt in European markets. Even then, Derek realised that the UK business, with sales of c2.7bn, was in need of supply chain consolidation, given the slowdown in growth that the business had already forecast.He said: By early 2008, it was obvious that the business, which is best known for its Plumb Center, Build Center, Brandon Hire and Bathstore brands, needed to review its distribution infrastructure. The business had grown significantly in the early part of the decade and was set up to cope with a doubling in growth every five years. The landscape had changed significantly and we needed a new supply chain model. Given the fact that a major element of Wolseleys infrastructure costs lay within the 17 distribution centres (DCs) he had inherited on arrival 3 years earlier, Robb turned to independent supply chain consultancy Total Logistics to undertake analysis on the impact of various network scenarios. The team at Total Logistics is well known in the sector for its sophisticated approach to supply chain modelling that enables sensitivity analysis to be undertaken to assess the impact of DCs being established or removed from specific locations. Derek Robb said: Using an external consultant with relevant experience was invaluable when it came to confirming our thoughts on the future shape of the supply chain model. The team at Total Logistics acted as a good sounding board, allowing us to undertake scenario planning on the options that we had in mind.At the same time as the warehouse consolidation project, Wolseleys supply chain team also looked at other cost saving initiatives such as reducing delivery frequency, outsourcing 3PL provision in Scotland and also exploring new supply chain options for the groups Bathstore brand. Going back to basics and getting stock levels and inventory management right was another key element of the strategy. In the final analysis, Wolseley UKs proactive approach to supply chain management shows how insight and decisive action is vital to reduce costs, whilst not negatively impacting customer service levels.Through a mixture of network rationalisation, the adoption of 3PL to establish a flexible cost structure and better inventory management, Wolseley was able to reduce its overall supply chain costs by 30 per cent.

Case-8 Nestl Re-balancing Case Study Total Logistics Rebalancing the Supply Chain for Nestl Nestl is Switzerland's biggest company, founded by Henri Nestl in 1867. Today it is capitalised at over 59 billion and is also the world's largest consumer food company, employing 253,000 people worldwide in the production of more than 15,000 different products. It manufactures and markets some of the best-known international FMCG food and beverage brands in the world - Nescaf, KitKat, Quality Street, Buitoni, Cheerios and Shredded Wheat to name just a few. Total Logistics has been helping Nestl UK manage its supply chain for over eight years. Making sure that the right goods get to the right UK multiples, wholesalers and retail outlets at the right time every time is a huge logistical undertaking and is underpinned by Nestl's two biggest UK distribution hubs at York and Bardon in Leicestershire. When Nestl UK decided to sell off a significant part of its food business to Premier Foods in 2002 - covering such brands as Branston Pickle, Sunpat, Sarsons Vinegar and Rowntree Jellies - it was faced by the simultaneous problems of under and over-utilisation at the two main distribution hubs. Total Logistics was appointed to assess the options and specify the strategic solution - dubbed 'Project Shirt' - for the rebalancing of Nestl's UK supply chain. Whereas Nestl's York centre is operated in-house, the 456,000 sq.ft Bardon centre is managed on behalf of Nestl by TDG, one of the UK's largest supply chain solutions providers with 8,000 employees and a 1,600-strong vehicle fleet. York handles Nestl's confectionery business and Bardon concentrates on the rest of the Nestl product portfolio. This was principally the Food and Beverage range where TDG was assembling deliveries for Nestl from the Scottish Highlands to the Channel Islands - plus all sites in between utilising a network of eight transshipment centres around the country. Absorbing Business Change While the York facility was already being over-utilised on the confectionery side of the business, Nestl's food products represented a major proportion of the volumes passing through Bardon. This inevitably meant that the sale of the company's food business to Premier Foods would create the opposite problem for the Bardon facility: that of underutilisation. Bardon largely mirrors the York operation in terms of the basic warehousing process of goodsin; product storage strategy and zoning; high bay management; low bay management; order processing; RDT-based case picking; and loading/marshalling process. However, Bardon is a bigger operation, with 14 unmanned cranes, 57,000 High Bay pallet locations on 14-level aisles, 6,000 pallet locations in the Manual Bay 20 picking trucks and a range of other trucks.

Having spare capacity provided an opportunity to assess how customers were served and this was the principal driver for bringing in Total Logistics to help with the re-engineering of Nestl's supply chain. But it wasn't the only one: there was a risk management issue. Nestl no longer felt it appropriate to hold entire product stocks under one roof and a solution had to be found for the strategic storage and distribution of major lines - like coffee or the hugely popular KitKat - that protected them but without compromising access and delivery efficiency. In addition, a further objective of the project for Nestl was the establishment of a single customer service centre in York. There was also a clear need to respond to the impact of the EU Working Time Directive: the travel time for lorries delivering from York into the south of England is long. Without an alternative solution that reduced delivery lead times, adhering to the Directive would have almost certainly meant cost additions. Re-engineering the Supply Chain Ian Hill is Nestl's director of supply chain services and eBusiness: "The sale of our Foods Division was the ideal opportunity to build in a far greater level of flexibility and responsiveness into our national logistics network. We spent a lot of time listening to our customers and they wanted to see a higher frequency of deliveries but with less volume - in effect giving them a much more effective JIT-based method of operation. "We had already been working successfully with Total Logistics for many years and their appreciation of the strategic issues affecting our business made them the ideal choice for mapping out the options for us," he added. The initial study involved establishing the flows of product of the remaining business streams and modelling the costs of alternative warehousing and transport options. One of the possible options considered was to mitigate the under-utilisation impact of the sale of the food division by reconfiguring the existing network from two product-specific national distribution centres to two regional distribution centres - each carrying the full range of products. Effectively, this would merge the confectionery deliveries with those of the remaining food and beverage products. Having established the right strategy for change, Total Logistics then undertook a more detailed analysis of this option and the operational implications of providing an improved service to Nestl's customers. Switching to Composite Palletisation

As Hill says: "The secondary analysis gave us clear options from which to operate combined deliveries, including the right methods for stock deployment at York and Bardon. They quickly identified the changes that needed to be made to the warehouses and transport system in order to secure improvements in customer service, optimised warehouse utilisation, faster response times, combined ordering and an on-tap capability for more frequent deliveries." Once the right model had been developed by Total Logistics and Hill's in-house team, work on its implementation began. The York and Bardon hubs would need to be united closely the across systems, people, processes and transportation. This involved accurate co-ordination between Nestl, TDG at Bardon and also covered the AUTOSTORE warehouse management system (WMS) running all product movements at both sites. All of which would need to fit hand in glove with Nestl's SAP enterprise resource planning (ERP) system located at the company's Croydon headquarters - plus the new supply chain had to work within the parameters of Nestl's UK manufacturing operations. With major manufacturing centres at York, Halifax, Castleford, Fawdon, Tutbury, Hayes and Dalston, Nestl generates about 70 per cent of UK demand from UK centres with the balancing 30 per cent coming from overseas or being re-imported following export for finishing. Feeling the Benefit Throughout 2003, the necessary changes to warehouse configurations, supporting systems and processes were put into place with the first combined deliveries starting in September 2003. The full roll-out of the revised supply chain to Nestl's major multiple, wholesale and retail customer base took place successfully over the following months and into 2004 and has delivered many critical business benefits - for both Nestl and its customers. Hill picks up the story again: "With Total Logistics' help, we have for the first time been able to operate composite pallet loads for the whole of the UK - combining confectionery and beverages through two vehicle fleets and two distribution hubs. We have been able to maintain our cost base and run smaller delivery volumes more frequently without increasing costs. "The customer response has been very favourable: they are receiving an improved level of service that is inherently more flexible while we have been able to decrease our fleet size which has a positive environmental impact. We have created the single customer centre in York we sought - there we have centralised the control of all of our day-to-day operational planning. Lead times are shorter, order throughput is increased and we are now operating a supply chain with seven day ordering and 24/7 delivery. Importantly, we have been able to absorb the stipulations of the EU Working Time Directive without creating extra costs for us or our customers," finishes Hill.

Case-9 Claire's Case Study TL Recommend Two Step Approach for Successful Growth Fashion retailer Claires is adopting a two-step distribution strategy to help it achieve its global sales objectives. The new strategy, developed in conjunction with Total Logistics, followed extensive supply chain modelling and sophisticated sensitivity analysis. Claires specialises in fun fashion accessories targeted at 5 15 year old females. It currently has over 900 stores in 10 European countries, with UK, Ireland, France and Switzerland being the most developed. Historically these have been supported by a network infrastructure of three distribution centres (DCs) located in the UK, The Netherlands and Switzerland. As part of its current strategy to expand to 1,600 stores in 20 countries by 2014, Claires appointed Total Logistics to review its European DCs and recommend an effective solution to enable its growth plans to be realised. Total Logistics carried out a strategic site review looking at the location and size of the current DCs and the technology that could be utilised to achieve efficiencies without compromising flexibility. A model was then employed to assess the most efficient and cost-effective location for the DCs, ahead of the expansion plans. Factors such as various location combinations, warehouse size, resources, cost of each site and proposed throughput were taken into consideration and the models then tested against the relevant combinations of regional distribution centres (RDCs) and countries at two year intervals to 2014. As a result of using our Insight supply chain modelling process Total Logistics recommended a two-step-approach to Claires planned supply chain. The first step was to consolidate European volume into the UK DC and invest in this base to enable it to cope with anticipated growth until 2011. The second stage - from 2012 onwards will see the UK DC either re-located to larger premises or a second DC opened on the continent, ensuring it has sufficient throughput to make it viable from start-up.Les Beaumont, Project Director at Total Logistics said: Total Logistics Insight supply chain modelling system was an excellent way to identify the lowest cost option for Claires to achieve its expansion plan and enhance its supply chain productivity. By using this process we have identified that a two-step-approach will provide optimum efficiency, minimise costs and maximise results. Jim Conroy, Executive Vice President of Claires Corporate, said: Total Logistics combined a world-class logistics expertise with a strong desire to understand the specific drivers of our business to create a customised set of recommendations. They met every milestone date and delivered a solution that will result in significant savings for our organisation going forward. We have now retained Total Logistics to support us in implementing their recommendations and we look forward to continuing to work with them in the future

Case-10 TK Maxx Case Study Total Logistics Takes It To The Max - For TK Maxx TK Maxx takes a uniquely flexible approach to procurement. Free of planning restrictions and deadlines, TK Maxx buyers can buy as and when they spot fantastic deals.They buy as close to season or need as they dare in order to benefit from the best deals. Buying close to need also allows TK Maxx to be smarter about trends, respond to customer needs and to sell exactly what they want when they want it. This makes for a truly vibrant product range that reacts very quickly to changes in public taste and along with daily deliveries to stores, ensures customers will always see something new and different every time they visit. Each store carries over 50,000 items in stock at any one time and typically has 10,000 new items arriving every week: and with over 4,000 suppliers, it's an approach that needs precise management. TK Maxx plans to quadruple the size of business in the UK and Ireland by 2015 and to add 1,000 people to the workforce by 2010. To support such ambitious growth, TK Maxx asked leading European supply chain specialists Total Logistics to develop a new distribution strategy that would deliver the scale needed while preserving its traditionally nimble and opportunistic approach to buying. The key issues facing TK Maxx will be familiar to any retailer - the need to cut costs as a percentage of sales, the need to move goods through the supply chain faster and fight off competitive pressure from other retailers on the High Street. There is also the universal issue of managing the tremendous pre-Christmas period that starts every September and peaks in November and December. Underpinning the TK Maxx business model is the proven ability to maintain ultra-short lead times on procurement - that is, buying the goods and getting them in-store for sale within the same week. This has to be traded off against maximising labour efficiency, space and transport resources without compromising supply chain flexibility. National Network Four national processing centres (PCs) in Stoke-on-Trent, Wakefield, Walsall and Milton Keynes employing 1,800 people, plus two regional logistics centres (LCs) serve the UK stores, along with additional hubs in Scotland and Ireland. Innovatively, TK Maxx runs its store planning operations by satellite - over a Very Small Aperture Terminal (VSAT) network that links head office, distribution and stores in real-time. Product is sourced internationally by the buying team and then sent to the PCs for checking, unpacking, allocation to stores and ticketing. It then moves to the LCs to be sorted and

consolidated by store before being shipped out. When the stores take receipt, products are sorted by department and then unpacked for security tagging and size cubing. To pave the way for growth, TK Maxx needed to understand the number, format, location and size of future distribution facilities required along with which operational processes should take place and where. That is when they sought out Total Logistics, external specialists able to take an independent and supplier-neutral view of how to proceed most effectively. Alan Porte is TK Maxx's senior vice president of distribution services, responsible for worldwide imports, inbound/outbound store distribution and supply chain technology infrastructure. "TK Maxx sits right in the middle of a very competitive market space. The consumer price point is critically important to our success and we needed to explore precisely how we could optimise the supply chain to enhance our competitive and efficiency edge. For that we needed robust data interpretation for 'pressure testing' the existing business model, enabling us to relate accurately the state of the business today to how we want it to be in the future." Recalibrating for Growth To support this growth, TK Maxx asked Total Logistics to develop a distribution strategy to optimise the structure of the future network. Time was also a significant factor - the strategy had to be scoped out within 12 weeks to fit with TK Maxx's decision timetable. Following initial briefings and site visits, Total Logistics identified the key issues and matched it to a customised approach - an innovative element of which was the simultaneous interaction of the process and network modelling streams to determine the most effective solution.In addition, a large part of TK Maxx's costs were incurred with the very labour and space intensive preretailing activities, some of which were undertaken in the stores. The best location and processing methods for these activities needed to be settled. Another key challenge was to build consensus from the many key stakeholders in the business, including the buyers, stores, distribution and senior management both in the UK and the US. This was particularly important bearing in mind Total Logistics' ultimate recommendations to transfer some processes from the stores to central processing facilities that involved the moving of associated budgets, control and responsibility. Says Porte: "The existing strategy of separating PCs and LCs has given us considerable flexibility as the business has grown, but the current size and locations of the PCs and LCs were not ideal in terms of labour and space cost. The focus of the Total Logistics' study was to determine the number, size and location of new facilities required to meet the forecast growth. It needed to lay out a clear path for migrating away from the existing network and processes to the new ones, while taking account of seasonal pressures without adversely affecting the year on year profitability of the business".

Seven phases of activity over the three month project would take TK Maxx from assessment and theory to the start of implementation - from data gathering and workshops through to the intricacies of planning, modelling and network selection. Scenario Modelling Innovatively, the process modelling and logistics network modelling phases were run in parallel to meet the required timescales. Spreadsheet models used within each phase were developed to allow the seamless exchange of information through each successive examination of options. Both the modelling exercises included assessments of best-inclass processing and handling techniques. Porte was impressed with the depth of options the modelling delivered: "Importantly, the Total Logistics approach let us question the data and run a number of 'what if?' scenarios. It's so much easier to make an informed decision if you can eliminate the less effective alternatives quickly and accurately. "We were able to run capacity and process analytics that solved the supply chain design and control issues in a virtual environment. The result was being able to take key decisions early and know that those decisions would work as intended when the time came". With implementation underway, Porte is clear about the benefits: "The results are three-fold: primarily we can serve the store network more frequently and more accurately plus we've cut our inventory at store and processing centre level that frees up cash for the business. Just as important though is the confidence such nimbleness gives to our 170 buyers. They know that distribution can deliver against pretty much any buying decision they make - quickly and reliably - and this reinforces the freedom we give them to trust their own decisions and their sense of what our customers are looking for." The new TK Maxx supply chain replaces the LCs with smaller, shared-user cross-docking centres operated by DHL that are nearer the stores, allowing for faster throughput of product at a lower cost. For example, the Hammersmith, London branch is one of the company's 'hifrequency' stores and it can now take 21 deliveries every week: this gives the store team real precision when it comes to stocking what they sell instead of selling what they stock. The sortation of store totes is undertaken in the PCs using automated equipment. Feedback from the TK Maxx teams around the UK and Northern Ireland has been good - says Porte: "Retailers are used to change, and here our people are used to change as well as fast growth. We feel that Total Logistics has given us a superior view of the entire business that makes our retailing capabilities even keener. Their modelling capabilities allowed us to test the

strategy against a wide range of business sensitivities before we went live - and that's invaluable". The successful project has had some important softer benefits too, not least in improving awareness across the business of just how critical an efficient supply chain is. According to Porte, the independent assessment and challenge to existing ideas as to how product should be handled, stored and distributed has prompted valuable debate as well as embedding the newlyacquired modelling skills within the TK Maxx project team."We were looking for a partner who could understand our business, provide practical advice, communicate this to our management team and reduce the risk to the business. We found this in Total Logistics. They have worked with us to develop a 10-year strategy in line with our business objectives and have created a decisive road map to achieve this. It's a strategy that will deliver cost savings in excess of 5 per cent of distribution costs and significant service improvements to stores".

Case-11 Bodleian Library Case Study A New Chapter in Bodleian Library History Oxfords library service is one of the most diverse and extensive in the UK, comprising 30 separate libraries, one of which is the world-famous Bodleian. Built in 1602, the Bodleian is Oxford Universitys central research library and has become one of the most celebrated buildings in the country. Already boasting the status of the largest university library in Britain and the second largest library in the UK, it is rapidly growing and is in desperate need of more storage space to support its future growth. The challenge for Total Logistics and the rest of the team was to design a purpose-built storage facility that could hold millions of the librarys books that are in low demand, whilst ensuring their preservation. Some unique and complex considerations have had to be taken into account and throughout the project design, weve taken a very hands-on approach, regularly visiting existing collection stacks and working closely with the Oxford University Library Services (OULS) team to understand the unique nature of this challenge. A further design criterion that has added more complexity to the project has been the need to accommodate most of the material from the New Bodleian Library during its redevelopment to become a modern special collections library and research centre. The refurbished library will be built to meet National Archive Standards (NAS) which state specific guidelines on how books and manuscripts are stored. Refurbishment will begin when stock has been transferred to the storage facility. On completion which is expected to take four years - the New Bodleian Library will be renamed the Weston Library and will be repopulated with a selection of material back from the book storage facility. Therefore in the planning, the book storage facility had to be able to cope with a peak population of around seven million books plus one million maps, almost immediately, whereas normally in logistics the peak is towards the end of a design planning frame. Once the intricacies of the challenge had been fully considered, we began planning the facilitys infrastructure. The location was determined by OULS; 28 miles from Oxford, a site in South Marston, Swindon, on a direct route to the library, allowing for a reliable book-delivery service to the central Oxford reading rooms. Of the eight million books to be stored in the facility, it is expected that just 200,000 books will be requested online by readers per year. In addition to understanding and developing a solution capable of accommodating the differentiating stock dimensions, the book storage facility needed to conform to strict National Archive Standards. This required very close working with the wider design professions and added further dimensions to the storage solution design and modelling an unusual perspective with some unusual hurdles but one that we successfully overcame.

By bringing all the storage requirements and control factors together we created a storage model and detailed planograms to determine the contents specification of each of the 100,000 shelves within the facility. To achieve the required standards, the building is designed to be maintained at 18 degrees with a 50 per cent relative humidity together with a four-hour fire-rated perimeter wall. To guarantee the books preservation for the long-term, volumes will be stored in specially designed storage trays and boxes that are of conservation alkaline standard and fully modular to the planogram shelf configurations. The final design of the facility takes the shape of an 11 metre tall narrow-aisled solid shelf racking system comprising 31 Very Narrow Aisles (VNA), with seven different bay type configurations to accommodate the different sizes of books and other materials. It also boasts over 250 kilometres of shelf space and a five level map multi-tier structure. All of this has been designed in a manner that provides easy access to the books for retrieval and is environmentally controlled and sprinkler protected. Total Logistics also undertook an extensive tender process across the logistics European supplier base to find the most suitable partners for the logistics solution. Two suppliers were selected to develop the installation details, these being Jungheinrich UK Ltd for the materials handling equipment (MHE) and SSI Schaefer UK Ltd for the storage solution equipment which will be purpose built to the book storage facility specification.The bespoke storage facility that has been designed for the Oxford libraries has capacity to support the librarys projected growth over the next 20 years. Unlike most logistics operations where picking will involve replenishment, this application is unique as it will house eight million individual items and only one of each. In addition, when a reader has finished with the requested item, it will be returned from Oxford and processed back into the storage location. This reverse logistics operation is integral to the solution. Every step of the project has been carefully executed in very close partnership with OULS to provide a comprehensive knowledge of the process needed and to ensure every eventuality is covered. This deep-seated understanding of the library and its unique challenge has allowed us to help develop a book storage facility like no other in the UK.Dr Sarah Thomas, Bodleian Librarian and Director of Oxford University Library Services, said: With a modern storage facility for its extensive collections under construction, the Bodleian is now entering an exciting phase of development of services. The book storage facility will be the catalyst for improved management of its collections and the transformation of the New Bodleian into a special collections library and public galleries.

Total Logistics is making a substantial contribution to the success of this huge undertaking. Its understanding of the complex nature of this unique storage facility and attention to detail is impressive and will have a positive impact on library services for years to come.