September 21 2017 - 7:42 am

CASE STUDIES

Business Transformation: Express Parcels
Following the merger of two loss making parcel operations into a common brand there was a need to turnaround annualised losses of £7m in order that the business could be divested to allow the parent companies core business of 3PL to be grown. This project involved rationalisation of depot infrastructure and 3 dedicated contract warehouses closed and integrated into parcel sites with £0.7m per annum saving. The introduction of new working practices in depots with introduction of Part Time sorting operatives and increased automation (productivity increased 60%). Restructuring of depot delivery routes and depot territories saved £0.2M in SE & SW, and the restructuring of East Anglia operations with closure of Ipswich and new site at Chelmsford a further£0.4M. C&D productivity in south region increased 43%.Within 8 weeks of opening the new site at Chelmsford an additional £0.5m of new business was generated. Over 300 heads were made redundant during the restructuring phase, on time service delivery improved from 80% to 98.5% within a 12 month period and the image of the carrier amongst the market place improved from 12th out of sixteen companies to achieve first place in 1995. Within a further 12 month period the losses had been converted into a break even position and the business divested in equity backed MBO 12 months later.
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