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Wales and West Utilities - Customer Case Study

UK Utilities Provider Makes Substaintial Logistics Cost Savings with support from Gideon Hillman Consulting

UK Utilities Provider Makes Substaintial Logistics Cost Savings with support from Gideon Hillman Consulting

Wales & West Utilities is a regulated gas distribution business with around 35,000 km of gas distribution pipelines covering Wales and the South West of England, equating to a 1/6th of the UK with a population of 7.4 million in its catchment area.


tender management for Logistics Services Providers Every year Wales & West Utilities provides 20,000 new gas connections, replaces or repairs 250,000 gas meters and responds to more than 125,000 gas emergency calls so the need to have a robust logistics operation ensuring that the correct parts and materials are in the right place at the right time is crucial.

 

The company’s existing outsourced Logistics contract was due for renewal so Wales & West Utilities decided to engage some independent logistics consultancy expertise to help develop the scope of the tender which was to be sent out to the pre tender qualification shortlist of Logistics Services Providers (LSPs).

 

After a thorough selection process to identify a suitable consultancy to work with, Wales & West Utilities chose Warwickshire based Gideon Hillman Consulting to develop their Logistics and materials Distribution tender scope and support them in the evaluation of the responses for the LSP selection process.

"We chose to work with Gideon and his team, not only for their significant experience in both logistics tender management and Utilities Sector logistics operations; but also because his approach from the outset of our consultant selection process, was to challenge our initial project brief and provide an alternative strategy to substantially increase the benefits to us."

Wales & West Utilities - Supply Chain Manager.

During the consultancy selection process it was identified by Gideon Hillman Consulting that the proposed competitive tender process for Wales & West Utilities’ Logistics and Distribution operations could provide the opportunity to completely review their existing logistics strategy and gain significant additional advantages throughout their entire supply chain, rather than just reduce the costs of the current outsourced “Hub & Spoke” logistics operation.

 

This required a more detailed consultancy project than Wales & West Utilities had initially anticipated but the potential total supply chain benefits were clearly identified by Gideon Hillman Consulting from the outset.

"We found this to be a refreshing and different approach from the other consultants we spoke to, especially as Gideon knew that his proposal was outside our brief and could have eliminated his company from the consultancy selection process. However their presentation and rationale were convincing and the results have proven that the decision to progress with Gideon Hillman Consulting was the correct one as the annual logistics cost savings will be far greater than originally anticipated with the new strategy being implemented in 2010."
Wales & West Utilities - Supply Chain Manager

tender management for Logistics Services Providers

The consultants worked on site with the Wales & West Utilities project team and reviewed the current end to end supply chain process to develop an understanding of the full Logistics requirements of the Wales & West Utilities depot networks. This enabled them to identify all of the potential benefits and gains in order to provide a more client focused outsourced logistics solution.

 

The analysis of the supply chain also defined the future state service level requirements & KPI’s based on current best practice and client needs. Once the current state logistics map and future logistics requirements had been fully understood and agreed with Wales & West Utilities, the tender documents and scope could be finalised and issued to the shortlist of providers.

 

The tender process - which completely changed the logistics strategy already in place – resulted in significant annual cost savings far in excess of that which would have been achieved through just re-tendering the already established hub and spoke logistics operation.


"We worked closely with the Wales & West Utilities joint project team to develop a scope tailored to their specific needs with the objective being that the benefits from the logistics provider relationship were realised at the earliest opportunity
...We are proud to be associated with Wales & West Utilities as it is a company that likes to work with pro-active suppliers and we are very pleased with the outcomes and benefits that we have helped them to achieve." Managing Director - Gideon Hillman.

 

As an additional project Wales & West Utilities appointed the warehouse design team at Gideon Hillman Consulting to provide CAD designs and budget costs for improved facility layouts at two of their warehouse locations.

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Gideon Hillman Consulting is a trading name of The Supply Chain Consulting Group Ltd is registered in England and Wales.
Company Registration No: 09751027. Registered office at Highdown House, 11 Highdown Road, Leamington Spa, CV31 1XT. UK
A supply chain and logistics specialist with knowledge of logistics resurces contingency, ERP & MRP integration and logistics network planning

The Chartered Institute of Logistics and Transport fsdf SHD Logistics Awards Finalist New Facility 2016 Winner of the UKWA Technical Innovation Award 2016 The Logistics Awards Finalist Operation (large) 2018 QMS ISO 9001 Registered The Logistics Awards Finalist New Facility 2018 Supply Chain Excellence Awards 2018 Finalist Institute of Consulting