Breakfast cereal and snacks producer Kellogg has awarded a new contract to managed transport solutions specialist Jigsaw for the delivery of its brands to customers throughout the UK. Jigsaw was awarded the contract because it was able to demonstrate a simplified and scaleable supply chain solution with enhanced service levels and reduced costs to support Kellogg’s evolving business requirement. Central to the service is the management of UK less-than-truck-load (LTL) volumes incorporating direct load consolidation to ensure supply chain efficiency and optimum use of transport resources.
Kellogg is the world’s leading cereal company. It supplies a wide range of cereal-based breakfast and snack brands to customers throughout the country from its UK base in Manchester. Sustained business growth, recent acquisitions and the introduction of new products led the company to review its supply chain operations to meet evolving demand from retailers for increased flexibility and shorter lead times. This identified that demand for smaller consignments delivered more frequently created inefficiencies with additional complexity, vehicle movements and costs. The company recognised that managing and consolidating orders to fill trailers completely would make the most efficient and cost effective use of the available transport but this required the expertise of a specialist transport management integrator which could deliver across the full drop size range without regional weakness.
During the evaluation Jigsaw demonstrated that the scalability and adaptability of its solution offered an effective alternative to major third-party logistics providers. It has implemented a service which combines built-load and groupage components utilising the network capabilities of its eleven Partner Hauliers. To support the service the company has introduced high-cube trailers and other specialist equipment to maximise load size. These larger trailers enable greater flexibility in load composition and reduce total vehicle movements and road miles to help support the customer’s sustainability objectives. Careful planning ensures small consignments and partial loads are brought together to create full loads at the Kellogg distribution centres in Manchester for delivery to retailer warehouses across the UK.
The new service provides Kellogg with a solid platform and high degree of flexibility to meet ongoing and emerging business requirements. The planning efficiency, operational flexibility and larger trailers promote enhanced service levels and reduced costs. Jigsaw further removes complexity by providing Kellogg with a seamless, single point of contact for all aspects of the contract from its central network operations centre in Leicestershire. Kellogg and Jigsaw are working together to review and implement best practice as part of an ongoing continuous improvement programme.
"This is another example of how we can support big brands like Kellogg by reducing supply chain complexity and adding value through our expertise," said Andy Humpherson, Managing Director at Jigsaw. "Our unique network approach means we have agility across the full drop size range with national coverage to meet the needs of the most demanding customers."