Overseas sourcing & Import Management

Summary

LCP completed a ground breaking analytical study and process review to deliver a clear Import Management policy and strategy definition for its Client.

Project Background

With the transition of sourcing increasingly moving to low cost countries, inevitably larger flows of inventory are arriving in the UK and need to be managed more assertively than domestic supply.
The increase in stock and congestion arising from this was creating major operational difficulties for the Client.

LCP was requested to review the situation and recommend a course of action that could be sustainably managed by the Client.

Approach

This project explored two fundamental components:
1. Current practices and ways of improving the management of imports

2. The prevailing systems of control
LCP's approach was as follows:

• Support the Client team to map the existing processes and to identify the key issues with the current process

• Provide expert input on best practices in Import Management, to challenge existing thinking and develop new processes

• Identify specific areas that could be improved and quantify the impact of those changes

• Produce a comprehensive analysis of the total souring profile of the business, by source, category, cube, and value

• Produce a Flow and Cost model segmented using LCP's proprietary Cost To Serve (C) methodology

• Based on LCP's existing market knowledge, provide a comparative benchmarking of performance and establish the scope for improvement

The work was brought to a conclusion
• Summarising the findings and propose a structured means for managing the future Import Programme - this included management control, systems, trading (merchandising) / category policy, physical logistics both in the UK and overseas.

Client Testimonials

LCP has enjoyed a very long standing relationship (over a decade) with this Grocery Multiple Client.

Success Factors

More so than in other businesses, the dynamic nature of the market and trading environment results in constantly changing sourcing decisions, which makes planning that much more complex.

Results and Benefits

The major deliverables were:
• Creation of a new framework for managing overseas inbound supply in order to reduce storage capacity requirements, minimise transit times and increase flow through (inventory turns)
• Identification of significant opportunities for improved buying terms and consolidation
• Specification of the systems requirements to manage and control the new ways of working
• Substantial opportunity for operating cost reduction arising from the improved management of flows

The recommendations were built into the Client's new operating practices and global sourcing policy documentation.