Keeping goods flowing
Ship Direct Update
MCC is our first overseas distribution hub, in Singapore, which opened in April 2013. It now services our Middle East franchise partner with direct shipments of more than 65% of their total stock package. Most of our Asian origin stock now ships directly from point of manufacture via Singapore into the relevant Middle East market. This has brought about both significant cost savings and improved lead time (‘quicker to market’) benefits our partners as well as improvements in Co2 emissions and less travel distance. It will also add to our DC (Distribution Centre) sustainability project by diverting volume from our prime UK DC’s.
We have now introduced three more of our Far East franchise partners (Indonesia, Malaysia and Philippines) to be served from this Singapore hub who are now equally benefiting from this initiative. Our plans are to extend on the use of this facility by adding more franchise partners who are in the region to take advantage of the savings.
The Singapore hub is a 70k sqft shared user facility operated by our 3rd party logistic partners Uniserve. We have a dedicated space of 20k sqft with options to expand as the business dictates and we currently process more than 5 million units per year through the facility.
Containers by Train to Sherburn
We have now contracted with rail freight providers to move as many containers as possible by rail from Southampton and Tilbury ports of arrival to our Sherburn DC. This has worked successfully with minimal impact to our product intake and lead times whilst at the same time generating significant cost savings as well as reducing Co2 emissions, which have been captured in our 2014 Carbon Emissions report.
Nearly 11% of all container deliveries were made using this method during 2013/14 removing over 500 (553) vehicle deliveries from the road.
We are now also investigating using feeder vessels into Teesport and using rail options for the onward leg which will increase on the above benefits.