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CASE STUDY
Page 53
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Outsourcing to a 3PL
A manufacturer of DIY products recently changed its strategy from manufacturing in-house to subcontracting its production to China. As a result, it had no further use for one of its manufacturing and warehouse sites in the UK so it decided to outsource the warehousir and distribution for one of its largest customers to a 3PL company.
Burman was asked to analysr the data, produc a shortlist of shared-user warehouse and distribution companies, arrange tenderir and assist in the decision-making process.
As a result, a 3PL company was chosen close to the manufacturer's major customer and the operation WC successfully transferred.
A similar exercise was undertaken choose a long-term freight-forwardini partner for the client to manage its inbound shipments from China, Sri Lanka and the USA.
Trial shipments with three shortliste candidates were arranged and the forwarder was chosen. The decision was based on reliability, IT capability cost and, most importantly, the cultur of the organisation.