UK merchants get together for logistical purposes only

An initiative developed by the UK division of PaperlinX will see integration of the individual logistics operations across the Howard Smith Paper Group, M6 Paper Group, Robert Horne Group and The Paper Company. PaperlinX claims the operating will optimise customer service, maximise efficiency and minimise the environmental impacts of distribution.

David Shirer, executive general manager of corporate affairs for PaperlinX, says the lessons learnt in implementing similar programs across Australia have been put into practice in the UK programme.

“No two markets are the same, but the lessons we've taken away from the Australian experience are certainly being thrown into the pot,” says Shirer. “The initiatives are the result of a thorough review of what the UK merchants are doing, and it should bring some great outcomes for the company.”

Similar programs of integration have been undertaken across PaperlinX's operations across Australia and New Zealand in the past several years. Shirer says that while the way the company does business is always evolving, no plans are on the cards at the moment to undertake further operations.

Toby Marchant, regional president for PaperlinX UK, says all four of the companies being drawn together in the logistics initiative are proud of their own well-established business identities.

“However, pursuing individual marketing philosophies does not preclude uniting to defeat the common foe of rising costs and seeking common means to obviate waste,” says Marchant.

“The new logistics enterprise will enable us to truly create a centre of service excellence that leverages both the scale and the expertise of our existing operations.”

“It will seek to drive continuous improvement and efficiencies to our already market-leading positions as individual operations, as well as providing significant environmental benefits in the usage of our distribution vehicles.”

A new logistics company is to be established by the end of the year that will commence a three-year programme to take over all physical warehousing and distribution functions from the four merchants.

As the programme rolls out, the separate warehousing and transport resources of the four will progressively transfer to the new company. This will allow logistics technology to be implemented throughout the country, with the aim of improving existing service levels enjoyed and opening the door to enhanced control of distribution costs and environmental impacts.