The Supply Chain Consulting Group team, helps Pukka Herbs double the size of its warehouse and distribution capacity, as well as designing a future proofed multichannel fulfilment operation.
Achieving 30 per cent growth year on year, supplier of organic herbal teas and Wellbeing products Pukka Herbs is growing fast. In fact it was stretching the limits of its 9000 sq ft of warehouses at Hawkfield Business Park, Bristol. “We were stuffed to the gills and needed to find somewhere bigger,” says David Anderson, Head of Projects and IT at Pukka Herbs, although, due to the rapid growth, it was more complex than that, as the existing space was split across two warehouses and a third-party facility 15 miles away.
Pukka Herbs produces a range of ethically sourced, organic herbal products that are sold in the UK and internationally through supermarkets, wholesale, specialist shops and direct to consumer via online and mail order channels.
Pukka’s range of 40 different herbal teas are now available in 41 countries and it’s estimated that 1 million cups of Pukka tea are sipped every day. At the heart of this operation is Pukka’s warehouse, which receives its bulk herbs and finished products, which are then picked and despatched to customers via the company’s multiple channels.
In March 2014 Pukka decided to conduct a review to examine its processes and ensure they keep in line with best practice into the future. The company engaged specialist supply chain consultancy Go Supply Chain (GSC) to determine its requirements for warehousing over the next 5-8 years and to design an appropriate solution. GSC advised on elements of the process design, giving Pukka the chance to discuss these elements with their system provider.
Finally, GSC plotted a ‘strategic roadmap’ for the future of the distribution operations as the business continues to grow. A new, bigger warehouse that suited the plan was found: a 19,000 sq ft facility at Quadrant Industrial Estate in Bristol.
The building that would expand Pukka’s capacity to just under 1400 pallet spaces – doubling the number of pallet spaces (650) in its existing warehouse. Pukka’s multichannel operation fulfils a range of different orders: some very small, some very large.
GSC created a labour model to show what level of resourcing would be required in the improved layout and with new ways of working. “Simply throwing more people at picking is Inefficient,” says Anderson. “Thanks to the improved productivity and efficient layout of the new warehouse, we are in a position now where we can maintain our headcount without the need to bring in temps for long periods.”
Pukka Herbs can look forward to reaping the benefits of the consultancy project. Go Supply Chain director Gavin Parnell says: “The project will lead to better productivity and potential to reduce cost per unit, resulting from having a well-designed layout in one building and improved ways of working.
As a result of using external logistics consulting expertise, Pukka will also be gaining a more structured approach to managing the warehouse and confidence in the warehousing solution as a platform for continued growth.”
Commenting on the decision to work with Go Supply Chain, David Anderson says: “There are a lot of good reasons around value and cost when it comes to choosing a consultancy. However, at Pukka where we see ourselves as different to other businesses, we focus on the ‘fit’ when we first meet people and we felt that Go Supply Chain understood us. It wasn’t just that we ‘clicked’; they have great experience in the field, including the food sector, and bring a lot of expertise with them. The price worked for us too – making Go Supply Chain the straightforward choice for this project – which was carried out with tremendous efficiency. Gavin and the Go Supply Chain team laid out a plan for us, setting out what they needed from us and what they would deliver.
The end result is that our new warehousing operation will be significantly more productive and provides a platform for the continued growth of Pukka Herbs.”
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