Business Post arm wins first major deal

Panasonic is the high-profile launch customer for Integrated Logistics Solutions (ILS), a new operation set up by the Business Post group.
Although Panasonic has its own national distribution centre and in-house logistics arm for delivery to retailers, it also uses third parties, for example to handle smaller and palletised consignments that do not suit its dedicated vehicle fleet.
Outsourced functions include parcel movements, some deliveries of large items, such as plasma screen TVs direct to customers’ homes, and postal delivery of spares to engineers and retailers.
Jonathon Odams, general manager UK distribution centre for Panasonic Logistics Co UK, said the company would benefit from Business Post’s expertise in logistics and express delivery markets. “ILS is able to provide us with a ‘one-stop shop’ for our complete logistics requirements.”
Graeme Wilson, head of commercial development at ILS, said: “Prior to our launch, several of the groups business units would have been involved with a customer such as Panasonic. It might have entailed four separate people, from parcels, pallets, post and special services, putting forward their own solutions. Now we can act as an integrator, with dedicated key account management looking after the client.
“Our purpose is cross-functional – to bring everything under one consolidating umbrella. It’s a single transaction for Panasonic and one invoice at the end of the month. They told us it took away the hassle factor of dealing with multiple suppliers.”
Business Post is already looking after palletised distribution for Panasonic and will roll out other services later.
ILS is part of Business Post’s strategy to continue its development as a broadly based express, mail and logistics business. Terry Richards, who also heads up the group’s BXTech technical courier service, now also takes up the dual role as MD of ILS.
But while ILS would not necessarily limit itself to existing group services, the development did not mean a move into “sheds and big trucks” for Business Post, Wilson said.
“We will not need to do that to satisfy end-to-end supply chain requirements. We can offer Warehousing solutions, but these will be focused round the core of our business- for example where it supports existing parcel business.
“If it is seen to add value, we could still talk to one of the traditional 3PLs and bring it into the fold.”