Exel Plc
Exel plc-Supply Chain Management at Haus Mart
Industry Background
-Third-party logistics providers traditionally offered one of two services-freight management or contract logistics-with a handful offering both.
Exel plc
-Exel plc was created in 2000 through the merger of MSAS, a freight management company with Exel Logistics, a contract logistics company.
-This merger enabled it to create end-to-end solutions to appeal to customers.
-Services supported by an extensive land transportation network.
-With its scale and global reach, Exel was able to offer a variety of routes and schedules to its customers at competitive prices.
-Exel was also the world’s largest contract logistics provider.
Strategy Evolution
-Its ability to offer a wide range of logistics services and its global reach made Exel an attractive partner for large multinational companies.
-Maintaining a fairly equal balance of freight management and contract logistics contracts was important to Exel.
-Exel had been successful in keeping its relationship with its customers.
-There was a considerable growth opportunity in selling more services to existing customers. (An integrated logistics service could add value)
Exel’s Four-Team Approach
Business development, solution design, implementation, and operations
IT
-Accurate data
-Part of Exel’s strength was the effort it put into training all employees who used its IT systems and insisting on a high level of accuracy.
-The data had to be trustworthy: they could confidently make delivery promises to their own customers based on the data stored in their systems. -Increased their morale and added significantly to their productivity.
Haus Mart
-In March 2003, HM awarded the management of five if its six DCs to Exel.
-In the first seven months, Exel achieved almost 10% of the projected five-year savings. Some of these savings were the result of restructuring the organization of the staff and its work; others came from implementing more efficient work
Industry Background
-Third-party logistics providers traditionally offered one of two services-freight management or contract logistics-with a handful offering both.
Exel plc
-Exel plc was created in 2000 through the merger of MSAS, a freight management company with Exel Logistics, a contract logistics company.
-This merger enabled it to create end-to-end solutions to appeal to customers.
-Services supported by an extensive land transportation network.
-With its scale and global reach, Exel was able to offer a variety of routes and schedules to its customers at competitive prices.
-Exel was also the world’s largest contract logistics provider.
Strategy Evolution
-Its ability to offer a wide range of logistics services and its global reach made Exel an attractive partner for large multinational companies.
-Maintaining a fairly equal balance of freight management and contract logistics contracts was important to Exel.
-Exel had been successful in keeping its relationship with its customers.
-There was a considerable growth opportunity in selling more services to existing customers. (An integrated logistics service could add value)
Exel’s Four-Team Approach
Business development, solution design, implementation, and operations
IT
-Accurate data
-Part of Exel’s strength was the effort it put into training all employees who used its IT systems and insisting on a high level of accuracy.
-The data had to be trustworthy: they could confidently make delivery promises to their own customers based on the data stored in their systems. -Increased their morale and added significantly to their productivity.
Haus Mart
-In March 2003, HM awarded the management of five if its six DCs to Exel.
-In the first seven months, Exel achieved almost 10% of the projected five-year savings. Some of these savings were the result of restructuring the organization of the staff and its work; others came from implementing more efficient work