Toolstation's ambitious expansion plans, Howard - When it comes to supporting - STUDY
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CASE
STUDY
When it comes to supporting
Toolstation’s ambitious
expansion plans, Howard
Tenens knows the drill.
...on the challenges CASE
of a growing business STUDY
Formed in 2003, Toolstation has rapidly become one of the largest multi-channel suppliers of
building and construction products in the UK. As well as its head office and a distribution centre in
Bridgwater, the company has also invested in a vast, state-of-the-art warehouse in Redditch from
where it supplies a portfolio of Trade Counters that already numbers over 100 and continues to
grow at a remarkably robust pace. Open to everyone from trade professionals to DIY enthusiasts,
Toolstation is widely regarded as Britain’s Fastest Growing ‘Low-Cost Trade Supplier’.
Adam Keates, Operations Director at Toolstation, Matt Davis, Divisional Operations Manager of Howard
Tenens, Swindon and Neil Carroll, Marketing Director at Toolstation discuss how efficient logistics can
help the tool supplier achieve its aggressive target of becoming one of the titans of the Trade Counter.
In its early days, Toolstation operated the replenishment of its space in the vehicle. The physical layout of our Trade
Trade Counter network out of its own mail order warehouse Counters is also better suited to cage deliveries,
in Bridgwater using pallets. But, as the number of outlets and and goods arriving in unwieldy pallets were proving
the rate of replenishment grew, the fledgling company took difficult for staff to move around.”
the decision to invest in a dedicated new facility at Redditch
in the West Midlands. One other drawback of pallet deliveries was that being
limited to next day service with random arrival times often
Adam Keates: “Investing in the materials handling involved staff having to leave the sales floor to deal with
equipment at Redditch called for a major capital deliveries during busy periods.
expenditure commitment and it was at that point
that we chose to switch from our palletised freight Adam Keates: “It quickly became clear that a cage
distribution network to a cage replenishment system.” solution was the better choice for us right the way
through the logistics chain.”
Neil Carroll: “The reasons for doing so were
compelling. Each of our Trade Counters carries a
stock of over 10,000 catalogue items, many of which
are awkward shapes and sizes, so moving products
by pallet made it impossible to maximise the use of
...on working ...on being
together a matchmaker
With the company keen to allocate as much of its available
But if a cage solution was the more effective option for
investment as possible to growing and developing its
Toolstation, why hadn’t the decision to switch been
network of Trade Counters - rather than sinking funds into
made sooner?
its own transport infrastructure - Toolstation approached
sustainable logistics, warehouse and distribution experts Adam Keates: “A cage solution can’t usually
Howard Tenens and a 12-month trial partnership began in compete with palletised freight distribution on
September 2009. price. But this is where Howard Tenens came up
with an innovative breakthrough.”
Matt Davis: “Neither side thought it beneficial at the
time to enter into a formal contract, as Toolstation Matt Davis: “What we proposed was
was still expanding at a phenomenal rate - opening 2, consolidating Toolstation’s deliveries with those
3 and sometimes even 4 new branches each month. we were already making to a nationwide network
Both of us were aware that too many tightly defined or of over 200 Honda dealerships and dividing the
restrictive SLAs and KPIs could easily have hindered costs to the benefit of both companies.”
rather than helped the relationship.”
Co-ordinating deliveries and sharing many of the fixed
Adam Keates: “Initially we trialled a couple of Trade routes already used by Honda proved to be an instant
Counters to give our respective Operations Teams success and a 3-year contract was signed in August
the chance to get to know each other. Such was the of 2010.
determination on both sides to make the partnership
work, everything seemed to fall into place almost
immediately.”
Neil Carroll: “As with any new relationship, we had
to quickly hammer out a process; a way forward that
suited everyone. But the two Operations Teams took
complete responsibility for that themselves – teething
troubles were few and far between, it was simply a
case of individuals buying into each other.”
...on leaner, greener distribution
The stock replenishment process starts with Toolstation’s The result is fewer disruptions to the working day –
own bespoke customer, warehousing and supply system. Its especially where deliveries have to be made through the
efficiency owes much to a highly sophisticated EPOS-based front door of the branch - and no need for staff to stay late
solution that enlists the help of a complex algorithm to trigger to take out-of-hours deliveries.
orders so products are replenished automatically, days in
advance of stocks starting to run low. A consolidated solution with goods going to similar delivery
points provides both Toolstation and Honda with the measurable
Orders are picked and packed into cages at Redditch. Once financial benefit of significantly lower freight charges.
the freight has been amalgamated, it is trunked by Howard
Tenens to a series of hubs in places such as Swindon, Matt Davis: “Both companies embraced the idea
Dagenham, Ashby, Manchester, Larkhall and Exeter, of fewer inefficient trips and never having to pay to
where orders for individual Toolstation Trade Counters are transport empty space. They quickly grasped how
consolidated into full truckload deliveries with goods for similar attractive it would be to share the savings gained.”
delivery points and arrival dates in the Honda network. For its customers as well as Howard Tenens itself, a
Most of the freight is shipped through the night (although consolidated solution also provided an opportunity to help
daytime deliveries are also scheduled) so the orders are shrink the carbon footprint of the supply chain, as night time
ready and waiting for the Trade Counter Managers when running with less traffic congestion and hardly any delays
they unlock their doors every morning. can be more productive and fuel efficient....on the relationship
Howard Tenens stay in daily contact,
with monthly and quarterly meetings.
Adam Keates: “The kind of relationship we were looking Adam Keates: “One of the reasons Howard Tenens
for had to be significantly more intimate than we would are as impressive as they are is that they don’t fill the
have had with a fulfilment company, particularly because business full of temporary drivers. Instead, we know
our supplier would need to deliver into the Trade we’re working with committed, longer term individuals
Counter premises unsupervised and out of working – it’s why we trust them to the extent we do.”
hours. So we were expecting someone to take as
much care of our property as we would do ourselves.” Elsewhere, each company’s Operations Teams stay
in daily contact, with monthly and quarterly meetings
Every driver is fully trained, receives a specially developed organised to review the relationship on a regular basis.
Driver Pack and the individual driver concerned is also invited
to a series of meetings whenever a new Trade Counter is Adam Keates: “The conventional ‘them & us’ distance
launched or an existing one turned over to night replenishment. that you’d expect with even the best third party
supplier doesn’t exist between Howard Tenens and
Neil Carroll: “The Howard Tenens drivers are so Toolstation – we’re all part of the same team.”
much a trusted part of our Toolstation team that
they are completely at ease delivering to a Trade
Counter at 2am, unlocking the doors, delivering the
stock and resetting the alarms.”...on scalability CASE
STUDY
Adam Keates: “Since we don’t anticipate any
slowdown in the rate at which we’re opening
new Trade Counters, we needed to know that the
capacity available in the Honda delivery network
could be expanded quickly enough to keep pace
with us as we grow. Howard Tenens assured us
they’d keep the situation constantly under review
and it is very rare that we don’t get 100% delivery -
it’s an exemplary service, they don’t fail us.”
Matt Davis: “Full credit to Toolstation’s replenishment
system – it runs so smoothly that we can organise
deliveries well in advance, which makes it easy for
our Operations Teams to co-ordinate orders so a very
high percentage of vehicles go out fully laden.”
“Toolstation was founded by a team that is passionate about
running its business efficiently – and Howard Tenens is
fundamental to our success because they have a significant
role to play in us keeping our costs down so that customers
enjoy consistently low prices for high quality products.”
Adam Keates, Operations Director, Toolstation
To find out what Howard Tenens could do
for your business, contact us today on
Howard Tenens Associates Ltd
Tenens House, Kingfisher Business Park Tel: 08702 415640
London Road, Thrupp, Stroud sales@tenens.com
Gloucestershire, GL5 2BY
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