Probably the biggest 3pl contract awarded in the automotive sector during 2011
8th July 2011
MINI Plant Oxford has awarded the assembly, painted body, and production logistics contract to Rudolph and Hellmann Automotive.
"We are no stranger to MINI Plant Oxford having been the key on-site logistics provider since securing the business via competitive tender in 2001. During this period we have grown from a handful of people to employing over 400 highly trained staff.
We have also, since 2001, pro actively supported and successfully
delivered a number of smaller projects in partnership with the plant. However, we do believe this to be the largest tender offered to the 3pl market in the UK at this time. As a result, much of the competition we faced were significantly larger, highly respected and capable international operators" Martin Rollings, Managing Director, Rudolph and Hellmann Automotive.
Looking for a service provider to help them achieve their vision
The UK 3pl market has significantly changed during the last decade.
As the first manufacturer to introduce significant changes to the UK Automotive operational model when they purchased Rover in 1994. MINI Plant Oxford went away from open book and offered the first fixed price contracts with no volume guarantees. This significantly increased the risk of 3pl to market fluctuations, however, this change also provided 3pl's with an opportunity for greater rewards.
As a result 3pl operators have grown stronger as they adopted this more flexible, shared risk approach with other automotive manufacturers in the UK.
Which is why, when putting this ground breaking contract out to tender, MINI Plant Oxford needed to be sure they selected the most dynamic partner. A company capable of driving improvement, change and helping to shape their manufacturing processes over the next 6 years.
An aggressive and robust screening process challenging everything to justify their selection
Although Rudolph and Hellmann had very good local relationships, it soon became apparent phase one of the tender process was not a formality. Together with all other operators selected, they were subjected to a robust and vigorous initial screening process.
MINI Plant Oxford's lawyers, buyers and operational experts questioned every aspect of the financial fee structuring, operational specifications and legal obligations which needed to be met.
Drive down cost, take on more risk and demonstrate continually improving productivity
Every facet of the respective tender proposals was scrutinised, assumptions, productivity levels, and manning levels were questioned beyond doubt.
To take on the MINI Plant Oxford's business the chosen 3pl needed to justify every decision; illustrate how their specification would take on more risk but aggressively drive the business forward.
The proposals put forward needed to be realistic, deliverable and drive down costs, whilst optimising innovative process improvements throughout a long term vision.
It was clear they wanted a partner to be proactive in leading change.
Thorough in their questioning, every specific area of the 3pl's business and proposition was challenged.
Demanding significant evidence of provider capability, MINI Plant Oxford wanted tangible proof that the chosen 3pl could deliver on any proposed improvements.
They also wanted a partner to not simply focus on the areas specified but to look to add value elsewhere in the operation.
"If they build vehicles we'll do well, if they don't we need to be flexible"
"We had clarity on MINI Plant Oxford's position, they needed to feel the chosen 3pl could become a part of their DNA.
“Above all else MINI Plant Oxford challenged us and any future partner to demonstrate how they could help drive the business forward and meet predicted future growth.
“Rudolph and Hellmann Automotive provided a tailor made solution which addressed all of their concerns". Martin Rollings, Managing Director, Rudolph and Hellmann Automotive.
There were no volume guarantees but they wanted significant evidence of provider capability
Rudolph and Hellmann Automotive were able to demonstrate that every idea put forward was realistic and provide tangible evidence of their capability to deliver.
With case studies and testimonials documenting year on year quality improvements, significant financial rewards and gain share, little was left to chance.
In addition to this proven record of shared risk and rewards, Rudolph and Hellmann Automotive were also the only 3pl who has a dedicated focus in the automotive sector.
A track record of being innovative, reducing costs and improving quality
Dynamic and hugely experienced, MINI Plant Oxford were left with no doubt Rudolph and Hellmann Automotive are the right partner.
Working within an extremely flexible framework, they are uniquely equipped to support the significant changes planned by MINI Plant Oxford in the coming years.
Key was the ability to make decisions swiftly and respond to local opportunities with a variety of charging structures.
The leanest administrative structure puts us closer to the action
This means Rudolph and Hellmann Automotive always look at the wider implications, taking a longer term view.
It doesn't matter whether it's changes to the processes and infrastructure, designing more effective racking or buying a fleet of vehicles; Rudolph and Hellmann Automotive have the most dynamic and flexible approach, combined with experienced automotive manufacturing, and process personnel.
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Here’s how the 360 onsite logistics audit and assessment works!
Put us to the test, what have you got to lose?
Contact us for a FREE ‘on site' logistics audit – carried out under a non disclosure agreement - our findings will be reported in full confidence and will provide a detailed analysis of where savings and improvements can be made.
There’s only one condition - you must be UK based and be operating in the automotive sector, with a head count of around 25 - 30 or more operating in logistics roles.