Exel provides supply chain services for WH Smith in UK

Exel, has won a three-year contract with WH Smith, the UK stationer, for the provision of international supply chain management services from Asia to the retailer’s UK distribution network.

Exel’s integrated solution, based around its core capabilities in international logistics and freight management, will play a key role in ensuring the efficiency of WH Smith’s international supply chain operations.

Exel went through a rigorous six-month tender process with WH Smith in which opportunities for operational efficiencies and value creation within international supply chain operations were identified. WH Smith wanted a solution that could support its growth in overseas sourcing and provide flexibility and control through world-class process management, while controlling the operational costs and delivering continual value throughout the life of the contract.

Exel, with its strong consolidation capability in key sourcing locations throughout Asia, was seen as an excellent choice of supply chain partner. The two companies have worked together to explore how the supply chain could be re-engineered to meet current and future needs, and how Exel’s infrastructure could be used to drive efficiency and create new value.

Exel’s solution will control all international movements of the main stationery product ranges stocked by WH Smith. Over the last three years WH Smith has begun purchasing this product direct from overseas vendors, and realised that robust operational disciplines were needed to underpin this sourcing strategy. Exel’s consolidation capabilities were integral to the solution, with the expertise and scope in China and Hong Kong to provide the basis for value delivery in this key origin for WH Smith.

As sourcing strategies change and new vendors appear in new countries, Exel’s standard consolidation operating procedures along with its existing presence in key manufacturing regions will enable seamless duplication of proven disciplines and customer-specific requirements.

The new operation is due to go live at the end of 2003, when Exel will start physically moving the product. The intervening period will be spent implementing standard procedures for the operation, and ensuring all parties are fully up-to-speed with the timetable for value delivery.