Boots continues re-engineering supply chain

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Unipart Logistics, part of the Unipart Group of Companies, has won a ten-year contract to manage a second major Boots distribution centre. The contract is part of Boots’ program of improvements to its supply chain and will result in 300 new jobs being created at the Nottingham-based warehouse.

Unipart’s relationship with Boots began in May 2003 when it took over the management of one of the central warehouses based in Boots’ headquarters. This new agreement, which started on April 1, 2004, extends the relationship to a second warehouse which supplies 18,000 lines to stores and means that Unipart Logistics will now manage the warehousing and logistics for almost all of Boots’ non-dispensing inventory. Subject to consultation it is proposed that the 600 employees who work in the warehouse will transfer to Unipart’s employment as part of the deal.

This extension to the relationship is part of Boots’ strategic objective to re-engineer its supply chain and achieve its vision of creating the best lean retail supply chain in the UK. Unipart Logistics’ and Boots’ teams have been working together since the beginning of the relationship to trial new ‘store-friendly’ logistics processes which are focused on better stock management and ensuring that the stores “always have what the customer wants, when they want it”.

Commenting on the new deal, Boots group operating director Paul Bateman says: “This new contract is about improving what we do in our warehouses and stock management processes to reduce the amount of stock being held in stock rooms. It makes sense to work with a logistics specialist such as Unipart to implement these changes and our relationship with Unipart has been working very well.”

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