Track record
Homebase
Supporting the re-negotiation of logistics outsourcing
Homebase supplied its stores from four warehouses, and had outsourced the logistics operations in three of these warehouses to a leading logistics service provider. Homebase was not fully satisfied with the providers' performance, and contract re-negotiations were due at the end of the running year. An objective assessment of the service provider's performance was required to support the contract re-negotiations, giving a clear view of the improvement potential in each site and a comparison of their performance to industry benchmarks.
PA first developed a resource model reflecting the current situation. This related activity drivers to man-hours, and enabled the calculation of man-hours for different scenarios. PA also identified improvement projects and calculated the potential man-hour savings using the model. The current performance of the sites was compared to each other, and the performance of the different sites was also compared to best practice, to enable the calculation of optimal performance. PA also recommended how to improve performance through staged improvement projects and changes to the outsourcing contract that would enable an effective partnership.
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