In-house logistics activity to drive efficiencies

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RMC UK Cement Division, part of the RMC Group, is taking its logistics activities back in-house from November 30, 2004 when its three-year contract with TNT ends. The Cement Division will take over the operational management of the 190-vehicle strong fleet with a transfer of more than 380 employees from TNT to RMC under the TUPE regulations. The company’s decision to bring logistics in-house follows a four-year partnership with TNT which has seen the introduction of strong operational controls, management of an £8M investment programme in new equipment and reduced costs and improved service.

Commenting on the change Cement Division supply chain director Clive Oakley says: “We now believe the time is right to return to in-house management of this core activity. We would like to express our thanks to TNT Logistics who have helped us to completely re-engineer our supply chain, enabling us to deliver substantial improvements in control and service performance over the past four years. We now aim to build on the success of the past four years by continuing to drive through efficiencies, improving service and developing synergies and greater versatility across RMC in the UK.”

The dedicated transport service, which the Cement Division is now taking in-house, supports members of the RMC’s production and sales through several different activities, including customer processing, vehicle route planning and operation of distribution planning system.

Taking the transport service in-house is a continuation of the company’s strategy to streamline the business, which last year achieved a cost reduction of more than £3.5M on the previous year.

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