3PL makes MoD logistics contract short-list

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Exel is a partner in one of two external consortia that have been short-listed to manage the Ministry of Defence’s (MoD) new logistics contract that will drive cost savings and service improvements through the supply chains of the Army, Royal Navy and Royal Air Force under the Future Defence Supply Chain initiative (FDSCi). The decision on the successful provider is likely in March 2005, with the new operation due to come into effect in November next year.

Exel has reached the final stage as part of the Defence Supply Chain Solutions (DSCS) consortium, a special-purpose vehicle to be set up with defence industry specialist Devonport Management Limited (DML), which manages the Devonport dockyard for the MoD.

In-house proposals are being considered alongside the external ones. The FDSCi represents a significant change in the MoD’s approach to its supply chains. Instead of six different agencies, there will be just one logistics provider, expected to drive forward major cultural change in order to improve supply chain quality while unlocking new efficiencies and substantial cost savings.

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