London Gateway: Major Opportunity for Innovation (UK)

Peter Surtees, European Supply Chain Director of manufacturing giant Kimberley-Clark has hailed the UK’s new multi-billion dollar deep-sea port as a major opportunity for innovation.

Speaking at the Logistics Leaders Network Forum, hosted by London Gateway on Thursday, Surtees described the success of Project Sphinx, a collaborative initiative led by Kimberley-Clark, in which seven leading brands (including Heinz, Nestle and Kelloggs) are sharing warehousing and distribution, achieving annual cost savings in six figures for Kimberley-Clark alone.

“London Gateway is a fantastic proposition and a perfect opportunity to design collaborative supply chains” he said. “It’s not until you get here that you realise the scale of both the project and the opportunity. I’m really excited by the possibilities it offers.”

Although Kimberley-Clark has been highly successful in implementing innovative collaboration projects in Europe, notably France and Holland, Surtees has not attempted to replicate the model in the UK, believing outdated infrastructure and to some extent, inflexible 3PL thinking, to be serious barriers to success.

“Our most recent collaboration project is hugely complex but highly successful for all brands involved. Key elements have been VMI (Vendor Managed Inventory) replenishment, the right location close to shared markets and a willingness to think outside of traditional supply chain models both on the part of the manufacturers and the 3PLs.”

“London Gateway is definitely the right location to achieve the Holy Grail both for manufacturers and retailers, namely improved on shelf availability with lower costs due to a shorter supply chain. The Logistics Park additionally provides a virtually unique opportunity to build a purpose-designed facility for collaboration adjacent to the port. Goods can then be brought in through a single gateway, stored centrally, and distributed collaboratively.”

“For manufacturers and retailers with vision, London Gateway has created a chance to re-evaluate existing supply chains and make innovative decisions to achieve shared goals of lower costs with improved customer service and increased sales.”

Surtees was addressing an audience of members of the Logistics Leaders Network, an organisation established to provide supply chain professionals and freight transport leaders from all sectors with a focal point of communication, leadership, knowledge exchange and networking opportunities.

Chairman of the Logistics Leaders Network, Peter Acton commented, “As we hopefully emerge from recession, it is vital that we rebalance our economy through stimulating both import and export activity. This major infrastructure project at London Gateway is key to achieving this aim, and in my view will help generate growth and prosperity in the UK. We are delighted to have been able to hold our Forum on collaboration at this exciting venue and to showcase this impressive new development to our members.”

Speaking on behalf of London Gateway, Commercial Manager Peter Ward said, “At London Gateway we will be offering a 5-star service, setting new standards in performance and reliability. Our message to logistics and supply chain professionals is that whilst historically ports have been viewed as a necessary supply chain ‘node’ that simply adds cost, in contrast London Gateway will add tangible value to the supply chain, by reducing cost, replacing legacy practices and delivering real, long-term benefits.”

“Our aim in hosting events and inviting industry leaders to site is to raise awareness and understanding of the tremendous opportunity at London Gateway to develop and enhance end-to-end supply chains, and reduce costs.”

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Press Release, January 31, 2013