Where we can help: People and Knowledge

Bisham Consulting 20th December 2010

An Introduction to Bisham Consulting

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Business focus: • Strategy, analysis, operations, project management, implementation,

construction, and training in logistics and the supply chain

Approach:• Staffed by profit responsible Senior Managers from Industry

• Our approach is “hands-on”, practical and very commercial

• Our practical experience helps ensure that solutions are cost effective

• We only recommend solutions which we are happy to help implement

Main Products

• Operations: Rapid Diagnostic Review(Practical, operational - fast)

• Outsourcing   

• Network Design for Growth or Cost       

• Inventory and Working Capital

• MultiModel                           

• Dashboard Design                   

• Training (Bespoke, in-Company)

• An operational audit of transport and/or warehousing operations to identify the “root causes”.

• Managing the 3PL outsourcing procurement process and relationship building

• Establishing transport and warehouse networks for sustainable growth or sustainable lower cost

• Establishing optimum stock levels, ensuring S&OP Optimisation processes are efficient, reviewing the impact of sourcing supply chain emphasis, optimising working capital

• Identifying business case and value for multi-model solutions

• The development of operational cost and service based KPI’s to provide European performance visibility

• Using our Operational and Strategic insight to stretch Supply Chain Mangers and their Stakeholders with the latest Supply Chain Thinking

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Sectors and Solutions Experience

Sectors •Automotive

•Retailing and wholesaling

•Manufacturing and importing

•Healthcare and Pharmaceuticals

•Industrials

•Paper and Packaging

•Engineering and spare parts

•Security

•Telecoms and Computing

•Consumer Goods

•Food & Drink

Solutions•Transport

•Warehousing

•Materials handling

•Inventory and demand planning

•Operational IT systems and infrastructure

•Home Delivery and E-Commerce

•Parcels and Pallet Networks

•Multi-modal (Airfreight, Seafreight, Road and Rail)

•DC Construction

•Customs

•Managing Outsourcing Contracts

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Services

Strategy •Developing Supply Chain Strategies

•Network configuration

•Outsourcing programmers

•Mergers and Acquisitions

•Sourcing and procurement reviews

•Auditing Supply Chains

•Supply Chain process mapping

•Business modelling & analysis

•Risk management reviews

•Investment Appraisals

Operations Excellence•“Root Cause Analysis” and Diagnostics

•DC location and property development

•Warehouse design and layouts

•Warehouse construction management

•Automation and materials handling

•Transport Planning & Carrier management

• Inventory and Merchandising planning

•Operational IT effectiveness

•Fleet management and maintenance

•Project and Implementation management

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Business experience

As consultants:

• Developed retail, wholesale and manufacturing supply chain and logistics strategies mainly for UK and European businesses

• Designed, built and implemented major logistics operations covering purchasing, sourcing, transport, warehousing, IT systems, inventory and customer service

• Reviewed logistics and supply chain operations for capacity, efficiency, flexibility, cost, stock requirements and business risk

As MDs and Directors in line management:

• Managed retailing, wholesaling and third party contracting businesses in UK, Europe and Worldwide covering a wide range of product sectors

• Operated and developed retail, wholesale, distributor and manufacturing NDCs, RDCs and transport networks covering most business sectors in UK, Europe and the rest of the world

• Strategically re-built FMCG Supply Chains and managed large Procurement Operations across Europe

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What we doLogistics and the Supply Chain

Strategy

• Developing Supply Chain Strategies

• Network configuration

• Outsourcing programmes

• Mergers and Acquisitions

• Sourcing and procurement reviews

• Auditing Supply Chains

• Supply Chain process mapping

• Business modelling & analysis

• Risk management reviews

• Investment Appraisals

Operations

• DC location and property development

• Warehouse design and layouts

• Warehouse construction management

• Automation and materials handling

• Transport planning reviews

• Carrier management

• Inventory and Merchandising planning

• Tender process management

• Fleet management and maintenance

• Project and Implementation management7

Sector and Service Experience

Sectors

•Automotive

•Retailing and wholesaling

•Manufacturing and importing

•Healthcare and Pharmaceuticals

•Industrials

•Paper and Packaging

•Engineering and spare parts

•Security

•Telecoms and Computing

•Consumer Goods

•Third Party Contracting

Services

•Transport

•Warehousing

•Materials handling

•Inventory and demand planning

•Procurement and Outsourcing

•IT systems and infrastructure

•Home Delivery and E-Commerce

•Parcels and Pallet Networks

•Multi-modal (Airfreight, Seafreight, Road and Rail)

•DC Construction

•Customs8

Some Clients

American Golf

Ann Summers

Argos

Armstrong’s

BAA

B&M Retail

Becton Dickinson

Bomi

Bison

Bosch

Booker

BP

B&Q

Brammer

Bunzl

Cadburys

Cannon Group

Chubb Fire

CILT

Downton

Dreams

Eisai

Ethel Austin

Goodyear Dunlop

Greenham

Hoffman - La Roche

Homebase

Hutchison 3G

Interfloor

Invista

JCB

JD Williams

Johnson & Johnson

J Sainsbury

JSP

Kärcher

Keenpac

Kitchen Consultants

Salton Europe

Sun Chemicals

Sylvania Lighting

Tetley

Time Warner

TK Maxx

TM Retail

TM Lewin

Toolbank

TSB (Technology Strategy Board)

Unipart

Vodafone

Waitrose

WHO

Wrap

Yarpivo (Russia)

Kraft Jacob Suchard

LDC

Martin McColl

Marks and Spencer

Milestone (EAC)

New Look

OKA

Palletforce

Palletline

Panasonic

Parcelforce

Paul Smith

Reckitt Benckiser

Remington

River Island

Rockwool

Royal Mail

Serco

Solent Health

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Why clients typically choose Bisham Consulting?Logistics and supply chain solutions that work

• We are experienced business and operations managers who design and deliver logistics and supply chain solutions that work

• A proven ability to articulate practical strategies and turn them into effective operations

• We only recommend pragmatic solutions which we are willing to help our clients implement

• A strong commercial approach with a focus on cost reduction, service improvement and effective management of business risk

• We know how to take cost out of operations in a sustainable way

• High level analytical skills support by a wealth of practical business experience with a commercial edge

• A track record of delivering on time and on budget

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Key personnel (1)

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Derek Bell, FCILT: Chief Executive

Management experience: MD (3PL), Operations Director (3PL & Fleet Management)

Main sectors: 3PL, Pharmaceuticals & Healthcare, Retailing, Mail Order, Clothing, Industrials

Specific skills: Commercial negotiations, Warehouse design and build, Materials Handling, Warehouse Operations, Transport and Fleet management, Mergers and Acquisitions

Other: Board Director of the Chartered Institute of Logistics and Transport since 1992

Neil Middleton, FCILT: Director Management experience: European Development Director (3PL), Store Operations & Logistics Director (Wholesaling), Managing Director (Retailing), Main sectors: 3PL, Retailing (all sectors), Wholesale Food and Non-Food Distribution, FMCG Manufacturing, Pharmaceuticals and Healthcare, Telecoms, IndustrialsSpecific skills: Logistics and supply chain strategy; Warehouse and transport design; Commercial negotiation & costing; Logistics rationalisation; Outsourcing, Inventory & Merchandise planning; Supply Chain systems and modelling, Implementation management and performance improvement.

Key personnel (2)

Steve Rinsler, FCILT, FInstRE, FIBC, MCIPS: Director

Management experience: Supply Chain SVP (FMCG), Logistics Director (FMCG), Purchasing Director (Retailing, FMCG, Services, 3PL), Risk and Insurance Director (3PL), Managing Director (Facilities)

Main sectors: Retailing (all sectors), Food and FMCG Manufacturing, B2B services

Specific skills: Procurement, Buying and inventory management, commercial negotiation, merchandising, forecasting and systems, risk management, Training, financial modelling and costing, logistics and implementation project management

Other: Immediate Past Chairman of the Chartered Institute of Logistics and Transport, Non-Exec Director, UK Defence Joint Support Chain Main Board, visiting Professor Nanjing University, PR China, visiting Fellow UK Defence College Management and Technology, Member of Cranfield University Advisory Board for Marketing and Logistics Faculty.

Bill Somerton, MILTManagement experience: Senior Development Manager (3PL), Operations Manager (Food & FMCG) Main sectors: Retailing, Manufacturing, Clothing, 3PL, Parcels, International FreightSpecific skills: Logistics and supply chain strategy; Performance and process improvement; Commercial costing and negotiations; Warehouse and transport design

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Key personnel (3)

Richard Golding, CMILT

Management experience: Warehouse Development Manager (Engineering); Production manager (Manufacturing),

Main sectors: Engineering, Manufacturing, Retailing, Mail Order, Clothing

Specific skills: Materials Handling and Automation, Warehouse design, Warehouse systems & operations; Operational performance improvement

Ted Maley, CMILT Management experience: General Manager (RDT Engineering), Project and Systems Manager (Warehouse Equipment Supplier), Contract Manager (Engineering), Sales Director (WMS), Account Manager (WMS)Main sectors: Retail, Food Distribution, Bathroom Accessories, Publishing, FMCGSpecific skills: Mechanical Engineer, Supply Chain Systems (esp. WMS), Warehouse design and performance improvement, Automated and conventional equipment supply and specifications.

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Key personnel (4)

Steve Kenyon, CMILT Management experience: General Manager (3PL); Logistics Director (Retailing); Development Director (3PL) Main sectors: 3PL, Food Retailing, Manufacturing and Leisure Specific skills: Transport planning and network design; warehouse layouts and operational improvements; management performance improvements; contract costing and implementation

Colin Chambers, FCILT

Management experience: Logistics and IT Director (Pharmaceuticals), Finance Director, (Pharmaceuticals and Consulting), Facilities Manager (Manufacturing)

Main sectors: Pharmaceuticals and Healthcare, Retailing, Manufacturing, 3PL

Specific skills: Project management of implementations and facilities; Total Quality programme manager and auditor, Financial modelling and costing

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Key personnel (5)

Graham Glynn, MCILT Management experience: Head of Logistics and forecasting (Pharma); Purchasing and Logistics Manager (Pharma); Planning and Inventory Manager (Pharma); Customer service and Supply Logistics Manager (Pharma); Field Sales Force Administrator. Main sectors: PharmaSpecific skills: Supply Chain Management; Customer Service and Logistics Training; Materials managementOther: Trustee Pharma Pension funds

Tim Ansell, MCILT Management experience: MD, Returnable Packaging; Head of Marketing Development 3PL; Head of Sales, Contract Hire; Development Manager 3PL, Operations Manager (Food Distribution) Main sectors: Food and non-Food, Retail and Manufacturing; Fleet management and Contract hireSpecific skills: Marketing and Sales development; Quality control and returnable packaging; Food logistics; Commercial negotiation and costing in Contract hire; DC operations.

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CASE STUDIES

A Range of Projects and Assignments completed by Bisham Consulting’s Members

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Case Study 1: Retailing10 Year Logistics Strategy

Sector Retailing

Products Grocery

Project Type 10 year Logistics Strategy

Scale of Business £3.6bn; 300 stores

Key Task 1 Review current operations (capacity/productivity)

Key Task 2 Analyse future store growth plans and implications for logistics and model future inventory levels

Key Task 3 Analyse transport planning and operations to determine best fit for depot locations

Key Task 4 Develop a strategic and tactical development plan to meet future logistics development needs of the business

ResultsCreated a new logistics strategy which saved capital and minimised operating costs whilst provided the capacity and flexibility to deal with future growth plans

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Case Study 2: Manufacturing Warehouse design and capacity planning

Sector Manufacturing

Product Consumer goods

Project Type Warehouse design and capacity planning

Scale of Business £500m sales; 27,000 pallet spaces

Key Task 1 Analyse current DC operational performance and methods

Key Task 2 Develop capacity planning model for warehousing versus company growth plans

Key Task 3 Design new factory warehouse (Narrow-aisle) taking into account environmental and site constraints

Key Task 4 Cost new options and provide a detailed implementation plan and on-going project management advice

Results New DC built on time on budget

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Case Study 3: Retailing Automated Warehouse Performance Audit

Sector Retailing

Products Spare parts

Project Type Automated Warehouse Performance Audit

Scale of Business £800m sales; 250 stores

Key Task 1 Review current automated warehouse and identify strengths and weaknesses

Key Task 2 Undertake audit of key operational and systems processes

Key Task 3 Assess whether the original design is fit for purpose and what strategic factors need to be considered in the future

Key Task 4 Develop a strategic and tactical development plan to meet current operational weaknesses

Results

Confirmed general effectiveness of existing design; Identified central weaknesses impacting on current operational performance; developed a plan for improvement which is being implemented.

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Case Study 4: RetailingFuture Network Strategy

Sector Retailing

Product Type(s) Food (All temperatures)

Project Type Future Network Strategy

Scale of Business £400m sales; 10,000 SKUs

Key Task 1 Analyse current operations and determine strengths and weaknesses and current capacity constraints

Key Task 2 Model logistics implications of store growth plans

Key Task 3 Develop future design options for location of DCs and transport links and make recommendations on optimum solutions for different growth scenarios

Key Task 4 Design new generation chill and ambient warehouses to maximise productivity in high service level environment

Results

Identified the optimum locations and size of DC for the future network. New business plan and costings adopted for logistics operations. New warehouse design is due for implementation yielding a 25% improvement in productivity in a mature logistics operation.

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Case Study 5: Mail Order & InternetAutomated Warehousing & Project Management

Sector Mail Order & Internet

Product Type(s) Clothing; Fashion; Accessories

Project Type Project management – automated warehousing

Scale of Business £900m sales; 120,000 SKUs;

Key Task 1 Develop operating and capital budgets

Key Task 2 Liaise with contractors and monitor performance

Key Task 3 Project manage implementation of high bay warehousing operation with multi-level automated crane system

Key Task 4 Develop interfaces between automated equipment and manual operations and troubleshoot issues as they arise

Results Project delivered on time on budget

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Case Study 6: Third Party Contracting Pallet network economics and profitability

Sector Third Party Contracting

Product Pallet distribution

Project Type Transport strategy

Scale of Business £140m sales; 1,000 vehicles; 90 locations

Key Task 1 Optimise location of hubs and determine volume break- point for the development of new regional hubs

Key Task 2 Analyse regional delivery boundaries and improve efficiency of transport operation through realignment of boundaries and transport consolidation

Key Task 3 Develop profitability model to determine business performance by customer and geographical area

Key Task 4 Develop internal charging tariff based on weighted cost variables in transport and warehousing

Results2% margin improvement; opportunities for a further 8% improvement at individual operating level

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Case Study 7: Wholesaling Pan-European logistics strategy

Sector Wholesaling

Product Spare parts

Project Type Pan-European Logistics Strategy

Scale of Business £420m sales; 200 locations; 9 countries; 150,000 SKUs

Key Task 1 Develop cost-to-serve model for comparative efficiency analysis between countries

Key Task 2 Develop future business operating model and customer service proposition with management

Key Task 3 Analyse economics of customer service proposition, stockholding locations and transport efficiencies

Key Task 4 Compare centralised stock versus decentralised stock model and stocked versus bought-in

ResultsReduction in operating locations by 43%; £5m inventory savings; £2m logistics cost savings

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Case Study 8: WholesalingOutsourcing transport operations

Sector Wholesale Distribution

Product Type(s) Building products

Project Type Primary Transport Review

Scale of Business £200m sales; 12,000 pallets

Key Task 1 Analyse current operation and establish benchmarks

Key Task 2 Analyse options for alternative operation to improve service levels and security of deliveries

Key Task 3 Develop Tender specification; Identify suitable contractors; Evaluate 3PL responses

Key Task 4 Develop recommendations

ResultsOn-time delivery services with minimal product losses; 16% transport savings

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Case Study 9: RetailingImports Supply Chain Review

Sector Retailing

Product Type(s) DIY products

Project Type Imports Supply Chain Review

Scale of Business £300m sales; 25,000 TEUs

Key Task 1 Prepare a review of systems, processes and costs along the supply chain and identify priority areas for action

Key Task 2 Develop inventory analysis model to determine target stock requirements at each node along the supply chain

Key Task 3 Build a cost-to-serve model for the Import Supply Chain and calculate the cost impact on the Far East and the UK of different supply chain options

Key Task 4 Establish a framework for future development priorities and an implementation plan and recommendations

ResultsIdentified £4m operating cost savings, £20m working capital reduction and provided a practical implementation plan

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Case Study 10: Manufacturing Rationalisation of Distribution Operations

Sector Manufacturing

Product Carpet accessories

Project Type Logistics strategy

Scale of Business £120m sales; 4 plants; 25,000 delivery locations

Key Task 1 Establish target stock levels for production and finished goods inventory

Key Task 2 Capacity analysis of warehousing and new operational design for a central warehouse operation

Key Task 3 Develop new cross-dock model for distribution and reorganise transport planning and operations

Key Task 4 Develop implementation plan

Results £3m cost savings; £2m inventory reduction

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Case Study 11: RetailingFuture Warehousing Strategy

Sector Retailing

Product Type(s) Clothing

Project Type Future warehousing strategy

Scale of Business £350m sales; 70,000 SKUs

Key Task 1 Analyse current operations and determine strengths and weaknesses

Key Task 2 Re-design layouts to improve capacity and performance

Key Task 3 Develop future design options for long term warehousing requirements taking account of development plans and centres of business gravity

Key Task 4 Create new warehouse operational designs to maximize productivity

Results

Identified opportunities to improve productivity by 32% and capacity of existing facilities by 18%; New operations reduce manpower requirements by 16% and are currently being planned for implementation

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Case Study 12: RetailingBuying Price analysis

Sector Retailing

Product Convenience Stores

Project Type Buying Price Analysis

Scale of Business £750m sales; 800 stores

Key Task 1 Develop model of buying prices by key product sector (net buying prices; marketing spend; promotions; palletisation discounts; retros etc.) for 3,200 Grocery lines

Key Task 2 Analyse cost differences between wholesale delivered prices and direct from supplier to central warehouse for compatible products

Key Task 3 Establish savings estimates by product category

Key Task 4 Audit results on implementation

Results Savings of £3.6m delivered

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Case Study 13: ManufacturingProduction Planning Strategy and Warehouse Design

Sector Manufacturing

Product Building Products

Project Type Production Planning Strategy and Warehouse Design

Scale of Business £75m sales

Key Task 1 Create Production Strategy for a move from Make to Order to Make to Stock

Key Task 2 Sales Analysis to produce Inventory Guidelines and methodology for Safety Stocks

Key Task 3 Design a Warehouse to hold the needed stock levels

Key Task 4 Train staff in methodologies

Key Task 5 Customer Market Research Survey on changes to product delivery: palletisation and order from stock

ResultsBoard invested in the necessary marketing, systems and warehousing to meet the new sales and production planning regime

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Case Study 14: TrainingStock Control Managers

Function Group Warehouse Stock Control Managers

Product Type(s) Food and Drink Warehousing and Distribution

Training Level Strategic Context to Practical Issues

Scale of Business £2.18bn

Outcomes RequiredUnderstanding of their key role and responsibilities within a the warehouse operation

Key Area 1General Principles of Accurate Stock Taking and Administration

Key Area 2 Administration and Control

Key Area 3Principles and Practice of Causes of Errors and their Resolution

Key Area 4 Techniques and Stocktaking Methods

Key Area 5 Influence

Case Study

Timing 2-3 days

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Case Study 15: TrainingSupply Chain Senior Managers

Function Key ‘rising star’ supply chain senior managers

Product Type(s) Pharmaceutical and FMCG goods

Training Level Strategic Context

Scale of Business £7.72bn

Learning Outcomes Tools and Techniques for Supply Chain Excellence

Key Area 1 Supply Chain Strategy: its purpose and content

Key Area 2 Key relationships: identification and managing them

Key Area 3 Supply Chain Drivers: internal, external, lean/agile

Key Area 4Measurement of costs, cost drivers, Key Performance Indicators

Key Area 5 Demand and Inventory Planning, Risk Management

Case Study

Timing 4-5 days

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Case Study 16: TrainingTenders and Bids Management

Function Supply Chain and Procurement managers

Product Type(s) Pharmaceutical, food and FMCG goods

Training Level Senior and Operational Management

Scale of Business £1.72bn

Learning Outcomes Tools and Techniques for Tenders and Bids

Key Area 1Invitations to Tender: purpose and data requirements, To whom to send them

Key Area 2Bids: How to write successful bids, what questions should you ask?

Key Area 3 Negotiation

Key Area 4 The Contract and Relationship Management

Key Area 5 Risk Management and Implementation

Case Studies

Timing 4/5 days

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