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Premier Foods Case Study – Logistics Network Review

The Supply Chain Consulting Group Completes Logistics Network Review For Premier Foods

Premier Foods manufactures some of the nation’s favourite food brands including Bisto, Mr. Kipling, OXO and Angel Delight.

With the return of food inflation and changing retailer promotional strategies, Premier Foods combined its logistics operations into one centralised warehousing and distribution operation. Updating its strategy to give an equal focus to revenue growth, cost efficiencies and cash generation; Premier Foods is also working on continuous improvement programmes in manufacturing. 

Having previously completed consultancy projects for Premier Foods, The Supply Chain Consulting Group (SCCG), were engaged again by the Premier Foods’ management team, to support the consolidation of their sweet treats and grocery businesses. 

The Specialist Consultants at SCCG, conducted an initial centre of gravity analysis, alongside proposing various scenario models for depots. SCCG team compiled data of Premier Foods’ entire Supply Chain processes, including but not limited to, delivery operations, distribution operations, fleet size and profile, mileage dependent upon vehicle type, and drivers’ hours and route structure; including estimated transport cost impact. 

This initial review enabled SCCG team to provide Premier Foods with practical, and realistic solutions, of which the most cost-effective option was for the consolidation of Premier Foods’ sweet treats and grocery businesses, into a single depot based in the Tamworth area. 

Following the establishment of an optimum location for a single National Distribution Centre, the next step for SCCG, was to develop their recommendations into a scope for tender. Global provider of transportation and logistics services, XPO Logistics won the contract with Premier Foods, covering inbound transport, warehousing and outbound distribution to customers throughout the UK and Ireland. 

Premier Food’s 650,000 square foot site will reportedly employ around 170 workers and be equipped with XPO’s state-of-the-art warehouse management system. It is reported that transport services will be handled with a bespoke distribution fleet of approximately 70 vehicles and 200 trailers; with XPO customising its transport management software to enable Premier Foods to continually and consistently achieve optimal fleet utilisation. 

With the support of the Logistics and Supply Chain Consultants, SCCG, Premier Foods have now been successfully provided with a fully integrated and seamless solution to support their manufacturing and distribution operations.

“The Supply Chain Consulting Group were approached by Premier Foods initially to deliver a proof of concept exercise to establish the viability of a logistics consolidation plan. The data driven practicality checks and guideline costings were completed diligently and proved to be incredibly accurate in terms of the projected costs vs. the eventual contracts awarded. This served as a credible bench mark against which to evaluate tender responses and solutions. Having completed the first phase we engaged The Supply Chain Consulting Group to develop and manage a tender process which was comprehensive, transparent and time bound.” 
Head of Strategic Projects – Premier Foods.   


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