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Walker Logistics had been providing
a range of services to the US giant for
over seven years, but when the company
started to market its range in the UK and
Europe, the client opted to work with
one of the biggest names in the logistics
industry. You know what happens next –
just a few months in, the Americans were
seeking another supply chain partner.
The company’s requirements were
quirky, the large 3PL couldn’t adapt, and
Walker was re-approached to take on the
contract, having initially tendered for it.
The contract had always required a lot of
labelling, kitting and rework tasks, but by
necessity, Walker also found itself closely
involved in the client’s merchandising and
product packaging. First-hand expertise
in logistics was required to handle
unrealistic creative concepts: “Sometimes
the agency will produce amazing
concepts that would look fabulous on a
retailer’s shelf, but often they are simply
not practical from a logistics point of view
or would cost a fortune to assemble – so
we have to advise the client to turn them
down,” explains Jo Denton of Walker
Logistics. It might not be great for the
designer, but it’s invaluable for the client.
“How will a product look within the
proposed kit idea? Will it travel well and
not swivel around in transit? The weight
of the kit must also be considered
along with the number of kits that can
be contained within an outer carton –
particularly as some retailers specify a
minimum number of kits per outer.”
The client’s business ethics also had to
be factored in. In this case, Walker faced
the extra challenge of making sure that
all packaging materials were recyclable
and vegetable ink was always used in
relabelling.
The company’s case study point is that,
for 3PLs, there is no such thing as a
normal contract any more. You have to
be ready and willing to do a lot more
than make up and ship a full pallet load if
you want to have an edge.
William Walker sees extra benefits
to smaller providers in what he calls
such ‘value-added’ contracts. When
improved processes and efficiency gains
are being sought at such a forensic
level, close and abiding relationships
between individuals from client and
3PL are necessary, so that savings can
be shared. Walker believes that the
motivation for such a close partnership
is stronger with a smaller 3PL, where the
value of the contract and any potential
gains mean proportionately a lot more.
The same goes for risk sharing. “The
smaller 3PL is far more likely to invest
in order to win or retain ‘value added’
work – it is all part of the entrepreneurial
spirit and drive inherent in smaller
organisations,” he says.
Small – in the sense of agile and ‘nippy’,
perhaps – is beautiful in the world of
intralogistics, too – according to John
Maguire, FCILT, of Narrow Aisle Ltd.
Again, his point is about adapting quickly
and flexibly to the ever-changing needs
of the market. And to do that, you
can’t be cumbersome. In the world of
warehousing – or intralogistics as we
have learned to call it – it’s no longer
enough to think about changing the
forklifts. Maguire’s point – which is a fair
one – is that there are a huge number
of existing warehouse buildings around
the UK constructed and equipped in the
last 25-30 years. Due to the enormous
changes in the economy, in the habits
of society and in the retail market –
think e-commerce – many of these
sites are no longer fit for purpose. The
original usage and purpose might have
changed completely so storage and
material-handling equipment are no
longer efficient or properly effective.
The opportunity to reconfigure, to create
a much more cost-effective operation,
allows new, agile handling techniques
and intralogistics technology to be
added to the mix. What Narrow Aisle
calls its Flexi Warehouse Systems
package includes storage equipment,
racks, fire protection, labelling,
management systems and battery
changing systems. It’s about making
more of what you have and being able
to react quickly and flexibly to a fast-
changing world. Those that are too
large and too slow to contemplate those
changes are slipping behind.
John Maguire: Adapt or lose
William Walker: Value-added
contracts are the way forward
7
Logistics Business Magazine | February 2016
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