BIFAlink November 2024

BIFA Awards

Driving international growth

Having transformed a UK customer’s supply chain model by

N oting that the Kerry Logistics UK team had been “a whirlwind of activity, effort and ingenuity” in response to the rapidly changing post-COVID-19 environment, strategic sales director Europe Emma Rowlands said: “We have worked closely with our UK customers, helping to establish logistics hubs in Asia which consolidate inventory from multiple countries, facilitating more ef fi cient distribution processes, crucially, reducing overall costs.” Indeed, the establishment of the Ningbo hub resulted in a 50% improvement in lead times and a 35% reduction in costs for a British client that was working to expand its presence in Asia, but struggling with a supply chain model whereby goods sourced in Asia were distributed via its UK warehouse. Kerry’s Ningbo facility – part of its extensive Asia network – instead consolidates inbound shipments from vendors in China and Asia for direct distribution via sea, rail and air to their fi nal destinations in the UK, Europe, Australia and the US. Among the challenges involved in setting up the operation was the establishment of standard operating procedures (SOPs) for the client’s diverse customer base. These SOPs varied in complexity improving stock visibility, shortening lead times and, setting up a consolidation hub in Ningbo, China, Kerry Logistics UK gained recognition in the form of the BIFA Supply Chain Management Award

Kerry is adding destinations to its network

and entailed precise instructions for each unique market, encompassing sourcing, local packaging and navigating Customs hurdles. The consolidation of inventory also presented challenges such as incorrect or late deliveries from suppliers, which had the potential to lead to shipping delays. However, through process management strategies, a round- the-clock operational presence and an expanded workforce, Kerry completed the project within a demanding timeframe. Systems Key to its success was Kerry’s Warehouse Management System (KWMS), which, in conjunction with its PO (purchase order) management tool, provided the client with complete visibility of stock. Rowlands outlined: “KWMS is our own system so we are always fl exible in designing around the client’s requirements. The more complex integration was with our VBO (Virtual Buying Of fi ce) for this client, due to the many levels of PO data for their different customers

across B2B, B2C and retail.” The integration of VBO allowed KWMS and the PO tool to communicate with each other, which improved ef fi ciency as it allowed the client to monitor, trace and track their stock through the supply chain with purchase orders. Using the same platform allowed all stock to be monitored as the systems were aligned, creating visibility in one place. “Digital integration is key, when and where it is integrated as a pragmatic system for the client that can communicate with other platforms seamlessly,” Rowlands said. “In this case, the KWMS and VBO link created in effect a one-stop solution instead of disparate teams having to upload and download data cross-system.” The ef fi ciency that digital integration brings automatically helps improve environmental performance across the supply chain, she pointed out, adding that Kerry is also introducing products like KTREKER to monitor sustainability and ESG goals for its clients. As demand continues to grow, more destinations have been added to the Kerry Air-Sea and Sea-Air solutions this year, with more ports in China and across Southeast Asia helping to accommodate increased volumes. Finally, the Kerry E Commerce (KEC) team is now established in EMEA and is assisting customers looking to develop their e- commerce business internationally.

“ KWMS is our own system so we are always fl exible in designing around the client’s requirements – Emma Rowlands, Kerry Logistics

Supply Chain Management

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18 | November 2024

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