News

Fourteen haulage and logistics firms have benefited from a shake-up of tissue manufacturer Kimberly-Clark's (KC) distribution operation, which sees TDG lose its monopoly.

However, under the move TDG retains 50% of KC's transport work and gains responsibility for managing the whole distribution contract on a 4PL basis.

KC says the switch will help it slash its UK road transport costs by 10%.

Operating from an office in Carnforth,  Lancs, TDG will manage and plan routes for all 14 firms on the contract, with KC continuing to set rates.

As a result of losing half the transport contract, TDG says it has made 29 drivers redundant across three depots: Carnforth; Barrow-in-Furness, Cumbria; and Northfleet, Kent.

Although some agency drivers were taken on to manage the workload during the transition, TDG says there are "no plans for this to continue".

Peter Surtees, European supply chain director at KC, says each haulier has an individual agreement regarding contract length.

He adds: "We wanted to explore the idea of using a group of hauliers operating on a regional basis, but did not want to lose TDG's expertise and professionalism in looking after the business.

"We are looking to achieve a 10% saving on our UK transportation bill.

"This will come from less empty running due to TDG matching loads, and there will also be a reduction in our carbon footprint."

The 14 hauliers  include MRS Distribution, DHL, Jigsaw, Elddis, Norbert Dentressangle, Bill Chippington Haulage, Maxi Haulage and DSV.

Alan Miles, MD at Maxi Haulage, adds: "This is a very good new piece of business for our company."

KC manufactures brands such as Kleenex, Andrex and Huggies, and has four UK paper mills and several distribution centres across the UK.