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Luxury hamper specialist Virginia Hayward expands 3PL operation supported by Indigo WMS – halving resourcing costs and doubling throughput rates
Industry
Imports, Distribution and Retail
Challenges
» Needed to compete effectively with other 3PL providers and attract big brand customers.
» Sought to remove inefficiencies in its warehousing operations due to its reliance on predominantly manual systems.
» Required real-time warehouse data visibility.
Benefits
» Clear efficiency gains allowing the company to handle 38% more volume with the same number of staff.
» Doubled its operational performance.
» Greater customer satisfaction with enhanced process accuracy and faster feedback mechanisms.
» Delivered resourcing cost savings by reducing its administrative headcount by 50%.
» Improved employee job satisfaction.
Background
Virginia Hayward Logistics was launched by Virginia Hayward to offer a comprehensive warehousing and logistics service for local businesses seeking outstanding 3PL supply chain support. It was a natural progression for the company, having developed a reputation for logistics excellence over 40 years through delivering luxury hampers and homewares.
Based in the heart of the countryside on the Dorset/ Somerset border, Virginia Hayward Logistics operates from the Group’s 440,000 sq ft, modern warehousing complex, staffed by a team of 115 permanent staff, which expands to nearly 415 during peak periods. As a global specialist in luxury hampers, Virginia Hayward’s business is understandably seasonal, with peak demand experienced during the Christmas period. As a result of this seasonality, warehouses could ordinarily stand less utilised for extended periods of the year during the months of lower activity.
To capitalise on demand for high quality 3PL services and cost-efficient warehousing in the area, the company launched Virginia Hayward Logistics, to offer tailored storage and fulfilment solutions across 400,000 square feet of secure, BRC accredited warehousing, available on highly flexible terms. Services available include high specification racking to ensure efficient space utilisation for heavy pallets and two large, refrigerated areas of approx. 2,000 square feet, for the storage of fresh food.
“Having a WMS helped us to differentiate our offerings and open the door to attracting much higher profile customers who will only sign up if you’ve got a WMS. Indigo WMS gives us accurate data for reporting and the ability to offer a suite of business KPIs, which is a very powerful value add. Now, thanks to our investment in Indigo WMS, we have developed a reputation for ourselves as 3PL dairy specialists, which is a good niche market.”
Nigel Bradbury, Head of Logistics, Virginia Hayward Logistics
The Challenge
Virginia Hayward Logistics identified that in order to compete effectively with other 3PL providers and attract big brand customers, it needed to invest in a warehouse technology infrastructure to enable real-time data visibility and remove inefficiencies in its warehouse operations due to its reliance on predominantly manual systems.
The Solution
Indigo WMS replaced all manual processes with digital ones, utilising handheld devices and advanced scanners to streamline workflows and track stock from the moment it arrived in the warehouse. It improved the accuracy of inventory management, reduced paperwork, improved picking times and enhanced the overall efficiency of warehouse operations.
The Results
The investment in Indigo WMS has delivered significant business improvements and measurable financial returns for Virginia Hayward Logistics including: doubled operational performance, resourcing cost savings, clear efficiency gains, greater customer satisfaction and improved employee job satisfaction.
“Whether your load is heavy, awkward or chilled, we have the premises to suit your business requirements, with out of hours access available by arrangement.”
Nigel Bradbury, Head of Logistics, Virginia Hayward Logistics
Business Problem
Virginia Hayward Logistics identified that in order to compete effectively with other 3PL providers and attract big brand customers, it needed to invest in a warehouse technology infrastructure to enable real-time data visibility. Inefficiencies were identified in the warehouse operations due the company’s reliance on predominantly manual systems for managing inventory and logistics processes. These traditional methods involved a lot of manual data entry into spreadsheets, and were time-consuming. This led to slower throughput and higher operational costs, which affected profit margins.
In addition, one key potential customer interested in securing a long term 3PL contract was involved in the dairy industry and required very accurate lot traceability, stock rotation and allergen management in a highly controlled warehouse environment. This could only be offered if Virginia Hayward Logistics was to invest in a best of breed warehouse management system.
Solution identified
To address these issues, Virginia Hayward Logistics implemented Indigo Software’s Warehouse Management System (WMS). The solution replaced all manual processes with digital ones, utilising handheld devices and advanced scanners to streamline workflows and track stock from the moment it arrived in the warehouse. This transition aimed to improve the accuracy of inventory management, reduce paperwork, improve picking times and enhance the overall efficiency of warehouse operations.
“A key factor behind our decision to go with Indigo WMS was because this solution could offer a very bespoke way of handling one of our key customer’s products. They need to perform SSCC quality checks, which are a dairy industry mandate. Indigo really understood what we needed to achieve and was able to complete the necessary integration work to make this part of the logistics process seamless,” adds Nigel Bradbury.
Results Achieved
Overall, the implementation has generated many business improvements including measurable financial returns. These are as follows:
› Clear efficiency gains - The implementation led to significant improvements in productivity across all areas of warehouse operations. Virginia Hayward Logistics has seen a clear increase in throughput speed, allowing the company to handle 38% more volume with the same number of staff.
› Resourcing cost savings - The transition to software driven warehouse management has enabled Virginia Hayward Logistics to reduce its administrative headcount by 50% and these employees have been reallocated to other roles within the business as the company continues to grow.
› Greater customer satisfaction - Enhanced process accuracy and faster feedback mechanisms have resulted in higher overall customer satisfaction reports. Customers using Virginia Hayward Logistics’ 3PL services now receive more detailed and timely reporting, which has significantly improved overall service levels.
› Doubled operational performance - Virginia Hayward Logistics has reported a near-doubling of pallet handling capacity over the 18 months since deploying Indigo WMS. Actual pallet numbers handled has risen from 9,000 to 14,500 pallets, thanks to the improved efficiency and space optimisation that has been enabled by using Indigo WMS.
› Better job satisfaction - Using Indigo WMS has made working in the warehouse more pleasant and efficient for warehouse operatives. They have reported that the new system is more user-friendly, allowing them to focus on core logistics tasks without the burden of extensive paperwork. This has led to higher job satisfaction and a smoother transition to the new system.
“We didn’t really make many picking mistakes before using Indigo WMS because everybody took a lot of time over each task so the accuracy was already there, but processes were slow and inefficient. This is where we have seen huge improvements post implementation and we can now offer customers a suite of KPIs, which is a very powerful value add.”
Nigel Bradbury, Head of Logistics, Virginia Hayward Logistics
Conclusion
Overall, the implementation of Indigo’s WMS has transformed warehouse operations for Virginia Hayward Logistics, leading to better performance, cost efficiency, and higher satisfaction - for both employees and customers.
Looking ahead, Virginia Hayward Logistics will be taking the lessons learned and positive improvements to the rest of the Virginia Hayward Group, with plans to implement Indigo WMS at other companies within the business.
About Aptean
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