Salvation Army Trading Company Ltd (SATCoL) is the trading arm of The Salvation Army. SATCoL encourages the reuse and recycling of donated clothing and household items through 240 charity shops, donation centres and a nationwide network of clothing banks, diverting over 250 million items and more than 65,000 tonnes of textiles each year.
With the support of the British public, SATCoL has donated over £80 million to The Salvation Army in the last ten years to fund its work with vulnerable people across the UK.
SATCoL’s logistics operation runs a fleet of 250 vans and 80 articulated vehicles, transporting donations to sites in Kettering, Winchester, Wellingborough and Wollaston. Its future strategy centres on leveraging investment in the Kettering Processing Centre and optimising the logistics network to support growth.
SATCoL engaged The Supply Chain Consulting Group (SCCG) as logistics network consultants to review its logistics network strategy and recommend improvements to operational efficiency and future volume growth. Key objectives included identifying optimal site locations, evaluating cost-effective network options, assessing the impact of automation, and analysing changes in donation disposal.
The project needed to account for forecast growth, potential changes in donation disposition, and two site leases due to expire in the near term. SATCoL’s operation is complex, requiring careful analysis of stock data, seasonal fluctuations, growth projections and regional collection requirements.
SCCG’s consultants carried out a comprehensive review of SATCoL’s network operations, collecting and analysing operational data. Geographical network modelling identified optimal site locations, while the costs of different hub and sorting depot configurations were evaluated in detail.
The team also assessed the impact of introducing larger-capacity vehicles and handling Fibersort™ activities. The resulting network options model factored in warehouse space requirements, operating costs and capital investment.
The analysis and modelling led to a set of recommendations to optimise SATCoL’s logistics network, including reducing the number of hubs in certain regions, introducing larger-capacity vehicles, incorporating Fibersort™ activities, and retaining the existing sorting depots rather than relocating them. Together, these recommendations were designed to deliver cost savings, improve operational efficiency and accommodate forecast growth.
The final report set out a clear implementation roadmap, factoring in lease expiries and other time-critical considerations, giving SATCoL a practical path to strengthen its logistics footprint while growing turnover.
Through this collaboration, SCCG gave SATCoL an in-depth, data-led review of its logistics network and a clear, actionable roadmap for improving efficiency and preparing for future growth. The optimised network model and cost analysis equipped SATCoL to streamline operations while continuing to support its wider mission of raising funds for The Salvation Army. Talk to our logistics network consultants to see how a similar network strategy review could support your operation.