Euro Car Parts, the UK’s largest distributor of parts for all makes of car and LCVs to independent garages, has launched an aggressive growth strategy which has been backed up by an independent analysis of its supply chain network. The Wembley-based business, which has a turnover of £200 million, has embarked on a major expansion project, which will see a new national distribution centre (NDC) established at Tamworth, Staffordshire.
With plans to double in size by 2012, Euro Car Parts employed supply chain specialists Total Logistics to undertake an independent study to confirm the shape and scale of its new network structure in the UK.
Following extensive network analysis, it was recommended that a new NDC be established to act as the central logistics hub, supported by eight other ‘super hubs’ across the UK providing fast access to the product range for the planned 120 strong retail network.
The new 265,000 sq. ft. NDC, at Tamworth, Staffordshire, is close to the M42 and is currently being modified and fitted out ready to open in July 2010. A phased roll-out of the hubs has commenced in parallel.
Les Beaumont, project director at Total Logistics, said: "Euro Car Parts is a unique business in the automotive sector. It really sets the standard through its huge range of products and the speed of delivery to its customers. Our challenge is to help them to roll out that ethos throughout the UK with the right logistics infrastructure. Euro Car Parts make local deliveries several times a day, ensuring that independent garages are able to work on cars and light commercials without the need to keep the vehicle overnight."
Over the next two years, Euro Car Parts plans to increase the number of its retail outlets from 60 to 120, increasing its workforce from over 2,000 to 4,000. This planned physical expansion of its retail footprint will also be supported by the company’s continued development of its web shop to increase online sales.
Steve Horne, logistics and business development director of Euro Car Parts, said: "Our business is based on service and people, but we needed the analytical rigour to ensure that our aspirations could be supported with the right infrastructure to deliver our service quality. With the insight from the team at Total Logistics, we now have that and are able to implement our strategy."
Total Logistics is one of Europe’s leading independent supply chain consultancies. It has recently undertaken project work for the likes of Nestlé, Coca-Cola Hellenic, Paperchase, EDF Energy and Serco, the organisation behind the London Cycle scheme. It undertakes supply chain strategy work, feasibility studies and supply chain implementation for a broad range of industries across the world.