Supply Chain Planning UK Limited Logistics Consultancy
SCP-UK Logistics Consultancy

Case Study - Raflatac Limited

Distribution Outsourcing

Distribution Review & Outsourcing

Partnership for Improved Service & Flexibility


Raflatac Limited - is based in Scarborough and Stevenage and supplies label-stock to the UK market with 50% of production sold in this country and the other 50% exported worldwide.


the brief - Raflatac, as market leaders in self-adhesive labelstock in the UK with 26% market share were concerned at the threat from emerging competitors able to offer shorter lead times and smaller order quantities. Raflatac required a thorough investigation of the options and alternatives for outsourcing their distribution to a third party logistics specialist or enhancing the in-house operations.


the approach - initially we were retained by the client to carry out a feasibility study. The study involved detailed examination of Raflatac's distribution service, the efficiency and the cost effectiveness of the operation. We looked into all options available to the client:-


Retaining the warehousing & distribution in house


Outsourcing the distribution service


Outsourcing the warehouse & distribution service


We supplied Raflatac with a Customer Service & Options report which defined the budget costs and customer service level provided, by each option supported by our conclusion and recommendations.


After consideration, the management team decided to go ahead with the option of outsourcing only the distribution. Once the decision had been made we were asked to manage the Invitation to Tender (ITT) process. This involved advising on a number of possible logistics providers to tender.  Raflatac then produced the initial ITT document which we reviewed and revised. When the completed tenders were returned we assessed and compared each document to produce an evaluation report with an overall summary and suggestions on who should supply their distribution.


the result - Raflatac entered into a UK Distribution Partnership agreement with Lane Group PLC.  It was found that both internal and external customers of the transport service were commenting on the improved service and flexibility.  The Partnership was so successful that the arrangement was soon extended to cover worldwide distribution of UK manufacturing products.


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