An independent FMCG manufacturer wanted abusiness review with a focus on warehousing &distribution.Davora reviewed the company’s fleet requirementsin conjunction with the order processing,warehousing & manufacturing departments.
Davora carried out a detailed review of the departments, analysed the distribution & warehousing with staff to understand the process from order processing to delivery. Davora made a recommendation to move to the GKN blue pallet system, the current system of buying new pallets & trying to recover them at the point of delivery was extremely inefficient. The company’s ‘owned fleet’ of vehicles were underutilised & were returning to the company unladen. The company were successful with the introduction of the GKN blue-pallet system saving £100,000 in the first year of operation. The owned fleet of vehicles were fully utilised by collecting raw materials for manufacturing, this enabled the company to negotiate a better price for raw materials. The fleets running costs also benefited as return loads were utilised by collecting raw materials for external canning contracts, in effect the company fleet had become a haulage company, billing to external companies created a win win situation.