The Client
Schneider Electric is the leading UK and world expert in the development and manufacture of products for the distribution and industrial application of electricity. In the UK, the company operates from 16 industrial and commercial sites, with 2,500 people, and achieves an annual turnover in excess of 270 million. It offers a huge array of products, including industrial control and automation components and busbar trunking, to a broad and diverse customer base. It is also able to provide a complete electrical turnkey package, encompassing the design and supply of equipment, through installation and commissioning, to operation and training. Schneider Electric recognises its customers as commercial partners: technical specialists who demand the highest standards of excellence in terms of products and service. In turn, it demands the same level of service from its own suppliers such as its 3PL provider.

The Need
Schneider Electric consolidated its two UK distribution sites into one and relocated from Swindon to Telford in 2002. It had been using SW for a number of years to transport its products to the wholesale retail trade but, following the move, required a more comprehensive and cost efficient service from its 3PL provider. This had to accommodate the following: order processing; order scheduling/routing; booking in deliveries; a real time delivery schedule of both standard gauge pallets and out of gauge ugly traffic; multi-carton consignments and returns management. Schneider asked SW to tender for its delivery management process from the new base and, following a long selection process, SW secured the contract.

The Solution
SW determined that a three-pronged approach - encompassing technology, transport solutions and physical integration - was necessary in providing the solution that Schneider Electric was looking for. Technology SW invested heavily in a system which enables it to plan, control, track and monitor deliveries. Data translation software downloads orders from Schneiders systems on an hourly basis. An onsite pc-based dispatch manager processes orders electronically. These orders are then planned and directed by the SW Traffic Office in Swindon, with the assistance of Tradermans Freightdesk tool. As many individual customers require multi-carton consignments, SW operates a system for consolidating multi cartons into one pallet whilst tracking the single order. This is achieved via scanning the cartons; information is then downloaded onto our system which we can then consolidate and track. Tracker, a vehicle satellite tracking/navigation system, affords us full visibility of the status of a consignment which we are then able to pass on to Schneider and its customers. Additionally, PODs are available on the SW website, completing the status information. This technology-led approach affords Schneider Electric full visibility of its order status; it maximizes available efficiencies and enables full measurement and reporting. Transport solutions Schneider Electric requires orders to be delivered within 24 hours to any part of the country. SW is able to meet this requirement by controlling the delivery medium. It combines dedicated vehicle provision, shared user and network facilities: standard gauge is delivered via a network provider whilst ugly traffic is delivered on a dedicated/shared user basis. This achieves maximum cost efficiencies and, as all delivery vehicles are suitably equipped with tail lifts, this also ensures that the integrity of the product is retained. A twice daily inter-factory shunt between Telford and SWs Swindon depot also facilitates further efficiencies. SW makes collections of faulty goods from customers. Instructions are received from Schneider via e-mail and collections are the planned and co-ordinated by SW and the goods returned to the Schneider plant. Physical integration The volume of traffic Schneider Electric generates is such that SW felt it was important to be physically close to operations. It seconded two specially trained employees into Schneider Electrics warehousing facility to sort, direct and load deliveries. In addition, SW opened a depot in Telford to support the customers business activities and provide a cost effective base from which to serve northern destinations.

The Results
SW has been able to provide Schneider with an economic, effective, reliable service one that the customer is very pleased with. In a recent customer survey, SW received top two box feedback.

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