Falsum enhanced a manufacturing company’s EU order fulfilment by developing a cost-effective Customs Operating Manual, evaluating 3PL partners, saving £45k annually.
Overview
A mid-sized manufacturer in the UK faced challenges in fulfilling EU export orders post-Brexit. The company was incurring high costs due to using expensive Fast-Parcel Operators (FPOs) for individual consignments from the UK to the EU. This operating model was not sustainable and was significantly impacting the company’s profitability and operational efficiency.
The Challenge
Brexit significantly impacted the manufacturing company’s overseas sales to the EU. The reliance on FPOs for EU order fulfilment resulted in substantial additional costs for customs duties, import VAT, and shipping. These expenses were not only eating into the company’s profit margins but also causing delays and logistical issues that affected customer satisfaction. The company needed a cost-effective and efficient solution to streamline its EU order fulfilment process and mitigate the financial impact of Brexit.
The Falsum Solution
Falsum provided a comprehensive advisory service, evaluating alternative options for EU order fulfilment. On behalf of the UK manufacturer, Falsum:
- analysed proposals from potential new 3PL partners,
- capability & capacity assessment,
- cost and customs compliance benchmarking,
- customs procedure background check.
Our evaluation included detailed pros and cons for each option, enabling the company to make an informed decision.
Once a new 3PL partner was selected, Falsum developed an optimized Operating Manual for EU order fulfilment and stock management. The manual focused on customs compliance and cost reduction, providing clear guidelines for processes such as inventory management, order processing, and shipping documentation. This comprehensive manual ensured that the company could seamlessly transition to the new fulfilment model with minimal disruption.
The Results
The manufacturing company successfully transitioned to a new EU warehouse for order fulfilment, achieving significant cost savings. The UK manufacturer believes Falsum’s customs advisory led to:
- estimated annual savings of up to £45,000 over three years
- reduced customs duties and shipping costs.
- enhanced EU ‘Customer Experience’ through efficiency, no tax & reliability.
The transition to the new 3PL partner was smooth, with Falsum’s detailed Operating Manual ensuring that all processes were clearly understood and implemented. The company experienced fewer delays and issues with customs compliance, leading to faster delivery times and improved customer satisfaction. The cost savings realized through this new model have allowed the company to reinvest in other areas of the business, driving further growth and innovation.
The Conclusion
Falsum’s strategic advisory and tailored solutions enabled the manufacturing company to mitigate the challenges posed by Brexit. The new fulfilment model and cost savings have positioned the company for sustained growth in the EU market. By partnering with Falsum, the company has not only improved its operational efficiency but also secured a competitive edge in the post-Brexit trading environment.
