Outsourced Warehousing

Empowering Beauty Logistics: Optimised, Outsourced, Outstanding with Libra Europe.

Background

Based in Manchester, I Love Cosmetics are a beauty product supplier with both manufactured and imported products sold to the UK market with a SKU range of circa 2,000.

Challenge

I Love Cosmetics operated their warehouse operations in-house. Libra Europe were asked to design the optimum warehouse solution, then create and manage the tender to outsource the operation and select a suitable 3PL.

Solution

I Love Cosmetics warehousing were due for contract renewal and were experiencing some  operational issues on-site in their Manchester warehouse, including a higher than projected cost to serve and lower than expected service levels, particularly around stock management. This was largely due to the manual paper based operation, and it was identified early on that a WMS system would be beneficial for the customer.

Libra was selected to manage the tender process, which started with understanding the customer issues. Following this, a number of 3PL businesses were identified and selected to take part in the tender response process.

After fully understanding the customers’ requirements, standard tender documentation was produced alongside a data pack and issued to the relevant suppliers with strict timelines against each stage of the tender process. This included working with potential suppliers on their solution options and providing direction.

Once tender response documentation was submitted, Libra supported the negotiation process to select a preferred supplier and award the contract.

Results

Procurement process achieved a 14% reduction vs current operational costs and an increase to 99.5% in service level targets proposed from the selected supplier. This was mainly achieved though warehouse re-design, improved flows and implementation of the WMS system. Some savings were also achieved though transport integration.

Close working relationships were established with the potential suppliers and a good knowledge of the operation was established, which enabled a smooth implementation process following award, with all elements of the project implementation delivered on time and within budget.