HOW STAPLES IS STRIVING TO BECOME A LOGISTICS TITAN
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FROM OFFICE SUPPLIES GIANT TO LOGISTICS CHALLENGER WRITTEN BY
LAURA MULLAN PRODUCED BY
JUSTIN BRAND
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S TA P L E S
Kevin Lewis, Supply Chain Director at Staples UK, outlines how the office supply behemoth is proving to be a world-class contender in the logistics market
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hen consumers think of Staples, they might recall the company’s famous office essentials. From its ink and toner to its
office furniture, the firm is renowned as a worldclass, multi-channel retailer. However, after selling off its retail business in the UK, Staples is pivoting towards a new market: the world of third-party logistics (3PL). 04
Kevin Lewis, Supply Chain Director at Staples UK, has helped to steer the firm’s supply chain transformation, consolidating its six warehouses across the UK and Ireland into one cutting-edge facility. “We’ve moved into a state-of-the-art distribution centre in Corby, Northamptonshire. In retrospect, it was much larger than we needed and it pushed us to look at how we could better utilise this asset. Now, we have some large-scale brands that have closed their own warehouses and made use of ours as a shared-user facility.” Winning business from traditional 3PL providers, Lewis contends that around 60% of the activity on the site now revolves around 3PL. “Our expertise has been focused on consolidated deliveries, consolidated invoices and the ability to mix our core product with actually almost any other product,” he adds.
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S TA P L E S
“ THERE ARE FEWER ABSENCES, MORE EFFICIENCY AND A LOWER TURNOVER OF PEOPLE BECAUSE WE’RE INVESTING IN OUR TEAM” 06
— Kevin Lewis, Supply Chain Director, Staples UK
The distribution facility is an impressive feat but perhaps the most exciting aspect of the facility is its ingenious use of technology and automation. “About 70% of our operations are automated so we use Pick to Belt and Pick to Light solutions. On top of this, we also have implemented an order, storage and retrieval (OSR) system by Kanpp” explains Lewis. “It was a £9mn investment just for the picking tower alone, but by using the full height of the building we can be much more efficient.” It also allows people to pick economically; adjustable platforms mean that people don’t have to reach or bend down to pick up items. Instead, they can pick from a height that’s comfortable for them. On top of this, Staples has also experimented with weighing technology that adds an additional layer of protection. “It’s an extra safety net,” observes Lewis. “We know the weight and dimensions of every single product so if there is any weight deviation, we would be able to see that and alert the team.”
CLICK TO WATCH : ‘STAPLES SUPPLY CHAIN: A PARTNERSHIP OF EMPLOYEES AND TECHNOLOGY’ 07 With this state-of-the-art facility,
an investment in technology and
Staples is well equipped to tackle any
automation unless they can recoup
logistical challenge. It’s also worth
that investment within the lifetime
noting that in recent years the com-
of the contract,” he explains. “The
pany has closed many of its brick-and-
difference with Staples is that we have
mortar stores and pivoted towards
already made that investment. We want
ecommerce. This means it has first-hand
to make shared use of our assets and
experience of the challenges of
we can also offer competitive contracts.”
efulfilment. Furthermore, having
Indeed, Staples has already won
already made significant capital
over big-name clients like Adidas,
investments in automation, Lewis
and car servicing and repair company
contends that Staples can offer its
Kwik Fit. “If a Kwik Fit branch needs
clients more competitive contracts.
some brake cleaner or if an Adidas
“When you go to a traditional third-party
store wants to order some carrier bags,
provider, they’re not going to make
they can only get it from this warehouse,” w w w.st a pl e s . co. u k
“ WE WANT TO MAKE SHARED USE OF OUR ASSETS AND WE CAN ALSO OFFER COMPETITIVE CONTRACTS” — Kevin Lewis, Supply Chain Director, Staples UK
making complexity simple KNAPP is a leading global supplier of warehouse automation solutions, with over 1700 active systems worldwide. The group’s advanced conveying, storage and fulfilment technologies are combined in solutions that feature seamless integration and intelligent software. Successful projects in the UK recently include systems for Staples, John Lewis, Boots, M&S, Clarks, British Gas, Debenhams and Well.
energy-efficient
shuttle storage
Visit us on stand
20 D128
KNAPP UK Ltd Unit 60, Monument Business Park Warpsgrove Lane, Chalgrove Oxfordshire OX44 7RW Tel: 01865 965 000 | sales.uk@knapp.com www.knapp.com
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E XE CU T I VE PRO FI LE
Kevin Lewis An experienced, commercially driven supply chain professional with a successful background in online fulfilment, large-scale parcel operations and multi carrier management. Strategic approach to successful business leadership and delivery, engaging with key business stakeholders and third parties alike, delivering effective supply chain solutions through managing People, Technology, Relationships and Processes. Extensive experience outsourcing, new site start up and muti-site consolidation both in the UK and internationally. PRINCE2 qualified, with experience of introducing practices and processes tailored to business requirements that enable and facilitate the wider strategic goals of the organisation. w w w.st a pl e s . co. u k
“ Staples may have sold its retail business but we’re very much thriving in terms of e-commerce and third-party logistics” — Kevin Lewis, Supply Chain Director, Staples UK
70%
of operations are automated
1986
Year founded
bespoke, tailored solutions exclusively for Staples,” says Lewis. This strong sense of collaboration can also be seen within the company too. By paying competitive, living wages rather than a minimum wage and investing in its team, Staples has worked hard to build a dynamic logistics business. “In the past,
10,000+
Approximate number of employees
we relied on agency workers and temporary labourers, whereas now it’s predominantly a permanently employed workforce,” says Lewis. “There are fewer absences, more efficiency and a lower turnover of people
Lewis notes. “Elsewhere, our biggest third-party client is Saint-Gobain,
because we’re investing in our team.” With this strategy in mind, Staples
which owns businesses such as glass
is ready to continue on its upward
companies and Graham heating and
trajectory, running more and more
plumbing. For this customer alone
supply chains on behalf of customers.
we have over 9,500 bespoke SKUs.”
“Staples may have sold its retail
Staples may be known for its retail
business in the UK, but we’re very
business but the firm is quickly making
much thriving in terms of e-commerce
waves in the logistics sphere. This
and third-party logistics,” affirms Lewis.
is partly thanks to its tech-savvy operations and global experience, but also its successful strategic partnerships. “We work with last-mile partners including TNT Fed Ex Group and Pallex. Both partnerships offer w w w.st a pl e s . co. u k
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Mitchell Road Corby Northamptonshire NN17 5AF www.staples.co.uk