Supply chain restructure offers flexibility

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Mothercare has chosen Exel to manage its UK distribution centres. Both companies will work together to relocate Mothercare’s operations from its Support Distribution Centre (SDC) in Coventry, to a new 27,900sq m national distribution centre (NDC) adjacent to the retailer’s existing UK facility, Daventry International Distribution Centre (DIDC).

These buildings will form the hub of Mothercare’s UK logistics operations and support its future growth.

Construction of the new warehouse has started with the move from the SDC expected to take place at the end of May 2005. The facility will enable ongoing improvements in Mothercare’s supply chain to drive throughput, increase product availability in stores and facilitate enhanced category management.

Staff employed at the SDC will be encouraged to transfer to the new NDC. The migration will be managed by a joint working party comprised of senior management from Mothercare and Exel, who will set up and manage the new site. Existing teams, systems, stock levels and vehicle services will be retained in their current forms.

Colin Astbury, logistics director at Mothercare, says: “Our plans for the new supply chain are the ideal solution for Mothercare’s distribution needs, giving us flexibility for the future as we progress our growth plans.”

Eddie Aston (pictured), divisional director for Exel’s retail sector, comments: “This is an important step in Mothercare’s development and we are working very closely with the organisation to ensure a smooth transition.”

l Exel has renewed and extended its inbound services operations for Volkswagen Group in the Czech Republic. The company will manage the inbound collection for VW’s assembly plant in Poland, and a new domestic inbound parts collection service for Skoda in the Czech Republic. Exel has also been awarded a significant new contract by Network Rail to handle all the materials supply chain management (MSCM) in support of the Manchester Contract Area. The operation involves between £4M-5M of materials turnover, to be handled through eight stocking locations. Exel will supply 400 maintenance engineers working across the

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