US manufacturer Briggs & Stratton Corp and Exel have extended their co-operation. Following the transfer of generator assembly work from Manchester to Veghel in the Netherlands and the management by third-party logistics provider (3PL) Exel of a large proportion of the in- and outbound European logistics, the 3PL is now taking over Briggs & Stratton’s generator purchasing and production planning. This collaborative venture has already resulted in substantial cost savings.
The co-operation with Briggs has gradually expanded over recent months. After starting with the assembly of electrical generators in February, Exel took over distribution of these products in Europe. Now Exel has taken on responsibility for the incoming transport of engines, generators and components as well as outgoing transport to other continents, except for North America where Briggs has its own assembly facilities.
Ton van den Oetelaar, business development manager at Exel, comments: “Our experience of assembly work in the hi-technology sector has enabled us to achieve substantial savings by improving production-line logistics. In order to further streamline the production process, we are now starting on the second phase whereby Exel also takes responsibility for the purchasing of a number of components and for the planning of the supply flow of components, which involves a large number of suppliers.”
David Bramhill, Briggs & Stratton Power Product Group’s director of European operations, says: “By relocating the assembly in Veghel, we are much closer to our main customers and suppliers. But the greatest benefit of the cooperation with Exel lies in the assembly logistics. Briggs & Stratton is a very engineering-oriented company. Logistics is not our core strength but Exel has shown us how we can save money by organising the logistics of that process differently.”
Goods arriving at Exel’s distribution centre in Barking, near London, are packaged and priced ready for European distribution. Exel manages the delivery of products by road to Burberry’s stores in Switzerland, France, Germany, Spain and Italy. Each store’s replenishment is based on retail purchases, which controls inventory levels and increases sales.
