Member Article

Big savings on logistics drive

North East firms have identified savings of almost £1m in the first year of a scheme designed to help companies make their logistics operations more efficient. The Logistics Project, which sees experts working with small and medium-sized companies and larger businesses in the region on ways to increase their efficiency, has already highlighted the potential for average savings of around £49,000 per company in its main delivery phase.

Delivered by Sunderland-based NAC Group and funded by regional development agency One NorthEast, the two-year project will involve 60 different companies in all and is expected to generate £2.5m of efficiency savings by March next year.

So far 12 North East companies have been involved in the project, with savings totaling almost £980,000 across its design and main delivery phases. Work with a further 21 companies already in progress.

Tne of the first businesses to take part, MDK Roofing and Cladding Services Ltd in Newton Aycliffe, has identified £200,000-£300,000 in savings so far.

Financial Director Neil Teesdale said: “We’ve been able to pinpoint specific areas where improvement is needed and large savings could be made. “The company is now benefiting from improved communication, planning and controls and is already seeing the benefit. Provided you are willing to make the effort and engage the ideas, savings will certainly be made.”

Paul Robson, NAC Group’s Managing Director, said: “We are very proud to have been able to make such an impact for our clients. “So far our clients have been extremely responsive and, together, we have been able to produce outstanding results in our first year. We look forward to developing our relationships with companies in the North East and assisting more of them to save money in future.”

Businesses wanting more information on the project can email Rita Potts at rita.potts@na-consultants.co.uk.

This was posted in Bdaily's Members' News section by Ruth Mitchell .