Lloyd Fraser Group

Source: Supply Chain Digital

Date :26/07/2007 16:22:35

Lloyd Fraser Group puts tailored logistics solutions at the heart of its nationwide success

Lloyd Fraser Group is a business that is not driven by the needs of external shareholders, but understands that to compete amongst much larger competitors it must offer a more innovative solution at a better cost

Written by Donna Harle & Produced by Paul Radbourne

A business that was established in 1987 to manage a regional beers, wines and spirits distribution operation for Asda from an old aircraft hangar in South Leicestershire has grown into a quality third party logistics company, employing over 1,600 staff and distributing to 33 sites nationwide.

From operating Asda’s first composite distribution centre on Magna Park Lutterworth in 1989, Lloyd Fraser has grown consistently year on year and now has an enviable client list. The company has a turnover of approximately £80 million per annum and operates over one million square feet of warehousing and over 500 vehicles for some of the most prominent businesses in the UK.

Supply chain modelling

Lloyd Fraser Group Plc strives for sustainable relationships with customers rather than fast profits. The company believes that they can differentiate themselves from competing logistics firms by working together with customers, suppliers and partners to deliver what they promise, acting with integrity and respect whilst also constantly look for continuous improvements.

This strategic vision means that Lloyd Fraser are developing and winning new business in key vertical markets. The group has highlighted vital areas where it can differentiate its product offering and it is constantly monitoring its value propositions. The vision is driving the organisation forward and it expects significant growth in the near future.

The company lives by its mission statement “to be honest, fair, understanding and respected in all aspects of business and employment.”

As supply chains become more sophisticated and customers push for smaller, more frequent deliveries to match consumer demand or ‘just in time’ production schedules, tight controls are required to manage costs and service levels. Lloyd Fraser has responded to these challenges with a comprehensive range of transport services, which cater for local and national requirements.

The company has added value and built in flexibility through advanced solution design and supply chain modelling where required, evolving to adapt to pressures such as road congestion, driver shortages and the working time directive.

Succesful relationships & CSR

In 1995 Lloyd Fraser was awarded a contract with ASDA, operating a consolidation centre for shop-fitting equipment on ASDA’s behalf. The relationship was so successful that the contract became a fixed rolling one, heralding a mutually beneficial relationship for over ten years. ASDA saw many benefits from this focussed partnership, with a consolidation centre, operated by Lloyd Fraser, realising a cost saving to ASDA of up to £6 million per annum.

In the same year, Lloyd Fraser was awarded a contract with Cardinal, one of the leading shop-fitting suppliers in the UK, dealing with clients such as Tesco, Marks & Spencer and Primark. The contract sees the company operating a 160,000 square feet national distribution centre (NDC) on behalf of Cardinal. The introduction of Lloyd Fraser allowed Cardinal to concentrate on its core business activities with Lloyd Fraser assisting with its IT and Human Resources. The company project managed the migration to the NDC in 2006, without any loss of service quality for its client and the company has also improved picking accuracy and reduced the level of damage to stock.

In June, Lloyd Fraser saw the arrival of a new fleet of vehicles for its Wickes home delivery operation, a response to ever evolving health and safety directives and tightening vehicle restrictions in urban areas. The vehicles had taken 12 months to get from the drawing board into service and the result has been a best of breed vehicle for heavyweight home delivery.

Rob Ivers, Lloyd Fraser’s general manager of the Wickes Home Delivery Network said: “Home delivery is a difficult job and every operation has a unique set of requirements that must all be accommodated, most of which compete and which no off the shelf design can satisfy. This vehicle is as near perfect a marriage between safety and efficiency as possible, and addresses as many of the on the road issues as a vehicle can. It sets the standard in its field.”

The primary consideration for body design was to make the job safer for the delivery crew. Lloyd Fraser considers corporate responsibility as a key factor in the business and its commitment to social, environmental and ethical responsibilities are reflected throughout the company.

With 33 industrial sites and 500 vehicles, its impact on the environment is primarily in such areas as energy conservation and vehicle fleet management. All sites must comply with its corporate policy ensuring paper, cardboard, plastics, wood, ink cartridges and PCs are recycled through the appropriate channels, which are monitored monthly as a Key Performance Indicator of the business.

Year-on-year the exhaust emission levels of its heavy goods vehicle fleet has improved. As a result both environmental and business benefits have been achieved.

Lloyd Fraser is also constantly searching for ways of improving the efficiency of its customer supply chains. Options that make sound business sense - lowering fleet sizes and fuel usage - often make sound environmental sense. Emphasising cost and efficiency compliments its aim to operate with minimum impact on its shared environment.