Unipart Technology Logistics’ future prospects appear to be extremely positive as it continues to draw strength from its philosophy, its efficiency and also new technology
Written by Ian Armitage & Produced by Paul Radbourne
One of Europe’s leading independent logistics companies, the Unipart Group provides bespoke supply chain solutions for a number of high profile clients. Unipart Technology Logistics (UTL) is part of Unipart Logistics, which employs over 1,075 people and operates from 22 locations in 14 countries.
“The Unipart Group provides third party logistics services to a wide array of sectors including technology, automotive, consumer, defence, leisure, and rail,” says UTL’s Managing Director, Claire Walters. "UTL focuses on the technology market sector with major customers such as BSkyB and Vodafone.
"UTL aims to provide best in class logistics and repair services to the technology market. We recognise that our skills and lean capability will become increasingly essential to technology customers who are looking to really optimise the value derived from their supply chain,” continues Walters.
“As our existing and prospective customers seek even greater value, we fully expect to see the consolidation of the reverse logistics supply chain around fewer, better able and resourced suppliers.
“For UTL, this now provides a real opportunity to look to Europe, and to consider how, and where, to provide services for our customers,” she says.
“We have seen a trend for outsourcing becoming increasingly apparent in the marketplace as businesses look to dissociate from non-core activities. This looks likely to continue as clients face new challenges. UTL provides bespoke solutions for customers and is well positioned to support the demands of new customers.
“We will continue to take a real partnership approach to developing lean supply chains for our customers. UTL focuses on the quality of its proposition to ensure that our clients’ needs and expectations are exceeded,” Walters explains.
“In addition to our logistics services, Unipart implements lean processes for clients across a variety of industries and in the public sector. Lean is our main focus, typified through what we call the ‘Unipart Way’ of minimising waste through being very lean and efficient.”
The ‘Unipart Way’ embodies the company’s lean consultancy methodology and is supported by a system of tools and techniques. But what exactly is the so-called ‘Unipart Way’ and how do customers benefit?
“For us the ‘Unipart Way’ is a philosophy of working that is underpinned by the best tools and techniques for removing waste and creating capacity. UTL excels in understanding its customers’ situations and culture, and then identifying where best it can add value,” says Walters.
“After we’ve determined how to add a competitive advantage, we begin to apply the tools
and techniques of the ‘Unipart Way’ in order to improve the efficiency and quality of supply chain processes.” This unique approach has become the company’s differentiator within the marketplace and, through the ‘Unipart Way’, UTL continually adopts the latest skills, both within its own operations and throughout those of its clients.
Hugely beneficial
Applying the ‘Unipart Way’ methodology to its relationships with clients has certainly benefited many of UTL’s customers; like Vodafone, with whom the company works extensively, providing logistics, repair, installations, refurbishment and call centre services. But why? And, more importantly, how?
“Our Vodafone partnership is an example of how the ‘Unipart Way’ can bring large amounts of additional value to a client,” explains Walters.
“We’ve been working with Vodafone since 1999 and we’re very proud of how that partnership has evolved over the years.
“I suppose part of the reason why partnerships like this are so successful is the fact that we can customise our services to best suit our client. We tailor our services to the customer and the needs of their business.
“For example, with BSkyB, our services have evolved over the five years we have been working in partnership with them, in line with the changing needs of their dynamic and rapidly growing business. We support them with a wide range of logistics and value added services, and endeavour to add value behind the scenes so they, and the end user, can maximise value from their products and services,” explains Walters.
Adding Value
Technology development shows no sign of abating, and as product lifecycles shorten, we asked Walters how UTL is positioned to continue to deliver value added solutions underpinned by lean operational excellence to the technology sector.
“The UTL proposition is unique, from the deployment of lean capability using the ‘Unipart Way’, through to the pioneering, integrated forward and reverse logistics operation based at our Nuneaton site.
“The value added solutions that see us providing customisation, repair, van kitting, and installations services provide real differentiation to our customers in their respective marketplaces,” Walters adds.
Repair
“In 2006 we entered the UK mobile handset repair market, a market into which we believed we could deploy the Unipart Way and deliver real efficiency and savings to our customers in a part of the supply chain that had traditionally avoided the spotlight.
“Our aim, in short, was to significantly raise the bar and transform service and quality standards in the industry. Increasingly, our clients provide devices and services to their customers that they do not want to be without, so we need to turn them around and get them back in the hands of the customer really quickly.”
Contained within a groundbreaking fully integrated logistics and aftermarket facility, the UTL repair operation, supported by all of the major global handset manufacturers, is now the most widely accredited repair facility in the UK. Combining lean-thinking with customer intimacy allows UTL to achieve unrivalled productivity, and significant cost, service and quality benefits for its customers.
“Thinking on behalf of our customers, UTL is working on repair avoidance as a key part of future repair business,” Walters continues. “It seems counter intuitive to reduce the volume of repair work, however we have to act intelligently and in the best future interests of our customers. UTL are also working in partnership with our clients to minimise
any environmental impact arising through the repair process.”
Customisation
Not being satisfied with repairing in excess of 80,000 handsets per month, UTL is always focused on identifying real value added services for its clients.
Walters continues: “In the latter part of 2008, we recognised an opportunity to further
support our clients’ needs by expanding our service offering into the customisation and rework arena. Through working closely with all of our clients and accredited OEMs, we are sensitive to the fact that any rework requirement has financial implications, and can impact upon device reputation and end user customer experience.”
“UTL is dedicated to building long-term mutually beneficial relationships and are proud
that our ethics and business principles ensure that we don’t take advantage of ‘quick win’ situations when our clients are in their hour of need. Instead, we offer innovative solution design, a turnaround time that reflects demand, a dedicated team with a culture of 'right first time' and a highly competitive rate to ensure that any financial exposure is mitigated,” says Walters.
Now with tangible results in service delivery and exceptional client feedback, 2009 is set to be full of new challenges and increased growth. By collaborating closely, UTL can understand its clients’ businesses thoroughly and cater for specific needs. Walters says having this operating strength creates an excellent culture in terms of empowering people and running a very Lean operation: “Our culture underpins everything that we do and really is the root of the success that we’ve had,” she says.
“It means that we are incredibly efficient and we challenge everything every day, with a standard way of performing all our services and activities. However, the really exciting part of the ‘Unipart Way’ culture is that it does actually engage and empower people. People are at the heart of everything that’s done and they drive the improvements; they think of them, and then they make them happen. “It actually encourages people to really think differently and then they start driving improvements on behalf of our customers. I genuinely think that we wouldn’t be where we are today without our people and culture of outstanding customer service.”
Walters considers UTL’s close partnerships to be paramount in moving forward profitably, especially as the downturn throws up new opportunities: “The logistics market is very competitive, so success boils down to how we serve clients and differentiate ourselves from the competition,” she comments. “And, going forward, maintaining close relationships will be as important as ever.
“The question will be how the recession affects things this year. I think every industry is probably affected, but to varying degrees. And I also think that now is the right time for us to leverage the ‘Unipart Way’ and make absolutely 2007sure that all of our clients are as efficient as they possibly can be, and that we take any possible piece of cost out.
“So 2009 will be a year in which we have to work very hard on behalf of our clients, and leverage our core skills; making sure we think really hard about what the year brings for them and trying to pre-empt where the market’s heading, so that we can do the very best job.”
Leveraging knowledge
The fact is that if you can provide a great service to the automotive industry, you can provide it to any client in any industry – UTL is living proof. Born out of British Leyland’s parts operation, Unipart sets out to provide services to its clients that will impart a great experience to them, and help them do the same for their clients.
“We’ve really benefited from having consistent leadership since the management buyout in 1987, and our Group Chief Executive, John Neill, has always been very consistent in his vision about the ‘Unipart Way’ and that has really helped us maintain our course, no matter what has been thrown our way,” says Walters.
UTL’s future prospects are extremely positive as it continues to draw strength from its philosophy, its efficiency and also new technology.
Walters concludes: “We see the demand for sophisticated, integrated service solutions which reflect shortening product lifecycles, and customers seeking ever greater supply chain value growing, and we are well placed to meet these demands. Lean thinking is absolutely critical in helping us to keep our customers ahead of their competition during a recession. We have to ensure that our customers have a really quick, lean and value-added operation as it continues to bite.”
FACTS AT A GLANCE
Company Name: Unipart Technology Logistics
MD: Claire Walters
Operations: Forward and reverse logistics
Established: 1980s
Employees: 1,075
Revenue: Would not disclose
www.unipartlogistics.co.uk