B2B Outsourced Supply Services

A large consumables and service equipment Distributor, established 40 years ago, was dedicated to fulfilling its 'always in-stock' promise. This commitment enabled the company to develop into a successful national operation with more than 250,000 square feet of assembly, distribution and fulfillment facilities, 1950 employees and £150 million in annual revenues.

Each of the Company’s 15 centres carried more than 7,000 products and guaranteeing that customers could order any of these items for immediate collection or next day delivery was the foundation of their unique competitive position.

Four years ago, this competitive advantage was seriously threatened. As the Company added more distribution centres, its aged legacy system failed more frequently and the number of out of stocks began to increase at an alarming rate.

The proprietary software that had hitherto been an easy ‘self-maintain’ was incapable of keeping pace with the company's rapid growth and increasing inventory volumes. The concentration of skilled and experienced staff was distributed and diluted as the organisation spread into Europe. Added to all of this was the lack of documented procedures and policies.

AMG was asked to conduct a thorough evaluation of the Distribution and Fulfilment Operation and recommend a programme to return the Company to former performance levels.

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