Case Studies

Below, we’ve provided two case studies showing how we’ve helped importers to not only reduce their landed costs by between 25-50%, but how we’ve also improved service, taken away a lot of their workload and in one case, recovered almost £30,000 of overpaid import duty!

Staffordshire Hydraulics Services

Case Study 1

Our Customer: Staffordshire Hydraulics Services, Kidsgrove
Their Business: Supply of equipment to the oil and gas sector
Customer Type: SME
Our Contact: Steve Moulton, Purchasing Manager
SCL Services Used: Freight Review, Freight Management, Customs Compliance

Staffordshire Hydraulics have been importing hydraulic pumps and high pressure fittings from the USA for over 30 years and their shipments are always sent by air freight  to ensure they meet the demands of their customers in the oil and gas sector.  They also import by air from Asia and by road from Germany. Prior to our involvement, they had been loyal to their freight forwarder for over 10 years.

We approached Steve Moulton in mid-2010 and offered to carry out a free assessment to see if there were any opportunities to reduce cost or improve service levels.  Steve was very open to the idea as they had no shipping/logistics expertise in-house. He was  also concerned that their costs had increased and their urgent USA shipments were taking around 1 week to arrive.

We spent a morning reviewing their activity over a 3-4 month period, studying freight invoices, air waybills and Customs entries and came to the following conclusions:

  • Costs were high
  • No rate agreement in place
  • No communication on shipment status
  • Transit times were slow/inconsistent
  • Little or no contact from their freight forwarder

After we submitted our proposal for the Freight Review using our shared savings model, Staffordshire Hydraulics saw the potential benefits and that not only would the review result in significant cost savings, but that they would see many other benefits including a faster service, certainty of cost and that someone with logistics expertise would be managing and overseeing this area of their business every day.

As a result of the Freight Review, we revealed a potential saving of around 50% on their annual freight costs and were also able to improve their import transit times by 2-3 days. This helped their production team who are always desperate to receive the USA product to fulfil orders from their own customers.

As things stand today, Staffordshire Hydraulics have been a customer for almost 4 years and we feel that we have become a part of their business, taking care of everything relating to their imports and letting them focus on their core activities.

 

Middleby UK

Case Study 2

Our Customer: Middleby UK
Their Business: Supply of commercial cooking and food processing equipment
Customer Type: SME
Our Contact: Mark Daintith, Purchasing Manager
SCL Services Used: Freight Review, Freight Management, Customs Compliance

Middleby UK is part of the US based MIddleby Corporation, headquartered in Elgin, Illinois. They have suppliers across the USA and need their inbound supply chain to be robust, flexible and competitive. They use both air and ocean freight to import their consignments and prior to our contact, they had been using two different freight providers for several years.

We contacted Mark Daintith and offered to conduct a free assessment to see if there were any opportunities to help them reduce their landed cost or to improve processes or service levels. At the time, Middleby were not unhappy with their service, but their lean structure meant they had not been able to conduct a thorough review of their import freight arrangements for a few years. We were also at the start of the global financial crisis and many companies felt they needed to keep a tight control of their costs given the uncertain economic outlook.

We spent a morning reviewing their activity over a 4-6 month period, studying freight invoices, bills of lading and Customs entries and came to the following conclusions:

  • Freight costs were 20-25% higher than necessary
  • Lack of communication on incoming shipments
  • Freight costs hard to verify as forwarders hadn’t kept rates updated
  • Little contact from their freight forwarder to review performance/service

Again, we offered to carry out the Freight Review using our shared savings model which Middleby liked, as they knew the review would be self-funded and would generate net cash to their bottom line as well as gaining access to a source of expertise and operational support.

As a result of the Freight Review, we delivered a saving of 25% on their annual freight costs and more importantly, we were able to ensure their freight costs remained competitive. Middleby also saw improved shipment visibility and better customer service. After one year, Middleby renewed their contract with us and in year 2, we uncovered errors on their import Customs entries over a 3 year period. We submitted a claim for overpaid import Customs duty on Middleby’s behalf and were successful in achieving a refund of over £26,000 from HMRC.

Middleby UK have now been a customer for 4 years and we have become an extension of their business, taking care of everything relating to their air and ocean freight imports and letting them concentrate on their customers.

If you would like to learn about our other success stories, please contact us.

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