Cheshire-based Boughey, which employs 600 people, was quick to act when JDF, a long established South Yorkshire business, was put into administration.  Despite the efforts of the administrators, a buyer was not found, and the company was liquidated, leaving thousands of customer orders unfulfilled.

Multiple Marketing and 3V Natural Foods were two of the companies affected by the demise of JDF, and thanks to the quick action of Boughey, their pallets were dispatched within a week.  As a result, they have both become clients of Boughey.

Managing Director Keith Forster commented: “JDF was a very long established company, with an excellent reputation in the sector.  Unfortunately the business became a casualty of the credit crisis, and its demise left hundreds of orders at the depot, waiting to be distributed.  Thanks to our large fleet, and huge state-of-the-art stock control system, we were able to respond immediately, collecting and distributing the pallets and clearing the backlog within a week or so.

“We are delighted to have the opportunity to work with Multiple Marketing and 3V Natural Foods, both of whom are key players within the food sector.”

Boughey’s investment in up-to-the-minute distribution technology means that 100,000 pallets a month are distributed by the company, with an average of 120 loads a day going in and out of Wardle. At peak times of the year such as Christmas, the number of loads will be nearer 200 a day.

The firm, part of the NWF Group plc, handles in excess of five per cent of the UK’s entire market in ambient, or non-perishable foods, while in the North West of England its market share is more than 25 per cent.

Boughey’s clients include Princes Foods, Complan, AB World Foods which includes brands such as Pataks, confectionery manufacturer Kinnerton and the Californian pineapple giant Dole.

Central to Boughey’s success has been its 55-acre purpose-built facility at Wardle, near Nantwich, which is home to the company’s fleet of 150 vehicles. Together with a sister site at Deeside, the Cheshire installation makes up almost a million square feet of warehousing capable of storing 115,000 pallets, all governed by a state-of-the-art stock control system.

Managing Director Keith Forster said: “This year’s strong financial performance is a result of our continual striving for improvement in the quality of service provided to our many clients.

“We invest in our people, facilities, technology and vehicles to ensure no stone is left unturned in a fiercely competitive market-place and hugely testing economic conditions.

“During the coming year, we plan to continue investing in the business and developing the service we provide to clients in the North West and elsewhere in the UK.”

Up to 100,000 pallets a month are distributed by Boughey with an average of 120 loads a day going in and out of Wardle. At peak times of the year such as Christmas, the number of loads will be nearer to 200 a day.

Boughey has come a long way since it was founded in 1964, originally specialising in the collection and delivery of milk from farms to customers.

In 2008, Boughey’s turnover was £32.9m, while three years ago it was £27.2m. During the past three years, the company has also boosted its workforce from 450 to 600.

They can be seen at goods depots, warehouses and behind the scenes at retailers all over the country; the ubiquitous wooden pallets on which every last box, bottle and carton must make the journey from manufacturer to supermarket shelf.

But just who is responsible for them… and how do they ensure there’s always a pallet available when and where it’s required?

For Boughey customers at least, managing this essential element in the supply chain is made easier by the provision of a dedicated pallet controller.

Che Kerin is the man responsible both for the pallets that pass through Boughey’s warehouses every day, as well as the pallets in wider circulation at any one time.

It’s his job not just to ensure consignments are palletised on arrival, but to manage the circulation of pallets between Boughey, the retailers’ regional distribution centres and back again.

In some cases, it also extends to providing pallets at UK customers’ manufacturing points. Making Boughey the custodian of a complete end-to-end pallet supply chain.

The payoff for the customer isn’t simply in the savings they make at every stage in that chain. It’s also in the time they save and the hassle they avoid by not having to manage the intricacies of the system for themselves.

As Che explains: ‘We ensure everything runs to plan so customers don’t have to be distracted from their core business chasing pallet returns, processing pallet control vouchers or overseeing the issue of new pallets.

It’s all about getting the balance of pallet intake and outtake right… and efficient communication between the customer, the retailers, the drivers and, of course, our CHEP representative.’

A world wide resource

With the exception of deliveries to Sainsbury’s distribution centres, all Boughey’s pallet management processes are integrated within the CHEP pallet pool.

The dark blue CHEP pallet is a common fixture in logistics the world over, and the operation behind it allows manufacturers, retailers and hauliers alike to share the assets and the economies of a combined resource.

Martyn Nicholls, Boughey Transport Operations Director, comments: ‘Not every distributor offers a full CHEP management service, but we see it as a way of adding real value and taking away what is often a big headache for our customers.

We have a good relationship with our CHEP representative that allows us to offer clients a premium service that fosters better relationships with their retail customers by keeping costs down and damage to stock to an absolute minimum.’

Think of logistics and you think of a process with manufacturers and distributors at one end, retailers and consumers at the other… and in the middle, the trailers and warehouses that can handle the volumes that make it all possible. But as Boughey and Product Chain are demonstrating, there is another way.

Product Chain is a sales agency that specialises in bringing new, innovative brands to the mainstream consumer market.

By their very nature, such brands often have limited financial resources and limited access to the services that are essential for sustained success in the fast moving FMCG environment.

Product Chain’s solution? Instead of thinking bigger than your established competitors, think smarter.

Nowhere is that approach more apparent than in its choice of distribution provider for its client brands.

When initial monthly volumes may have amounted to 20 - 30 pallets, Boughey’s consolidated services helped brands such as Real Foods and, more recently, New Zealand Honey Specialities Ltd, establish a foothold in the competitive UK market.

In the case of NZ Honey, that foothold has turned into a presence in over 1,000 UK stores in under two years. And all against a backdrop of falling honey prices and the best efforts of the bee-killing varroa mite to decimate the industry worldwide.

‘Our relationship with Product Chain goes back some five years,’ comments Boughey MD Keith Forster.’ It works for us because our consolidated model is perfectly suited to smaller volume producers who couldn’t otherwise afford the facilities, schedules and drop frequency we offer. And it works for Product Chain because they can be confident their clients are receiving good customer service levels.

‘There’s no commercial relationship between us, just an arrangement that benefits everybody concerned. Product Chain customers deal direct with Boughey and enjoy all the cost advantages that come with it.’

Many of the products Boughey handle on behalf of Product Chain offer organic alternatives to mainstream brands. The manufacturers of those products expect that integrity to be maintained throughout the supply chain, and here Boughey’s organic warehousing and distribution status has been a more than significant factor in their continued relationship with Product Chain.

So as unusual as it may seem for a distribution company to be partnering a sales agency, you can be sure that whatever the next challenger brand Product Chain brings to market, it will be Boughey trailers delivering it to the stores.

Just two years ago, Paul Lindley was wondering if giving up a successful career to start a business - literally from his kitchen table – was the right decision.  However, the decision has paid off and he’s now heading up a £4m business as well as being central to changing  kids eating habits in the UK.

With their fun and funky packaging, Ella’s Kitchen Smoothie Fruits, baby food and pasta sauces have achieved the impossible by making organic, additive free fruit and vegetables  ‘cool’ with a whole generation of kids.

Behind the colourful squishy, squeezy pouches, though, there’s a serious agenda: “Around 30 per cent of children in the UK are medically overweight and many kids just don’t get exposed to healthy, nutritious food.  As a father of two, I was keen to try to make some changes”, says founder Paul.

The fact that he knew little or nothing about food manufacturing didn’t deter him; working closely with kids to identify what they wanted to eat – as well as with nutritionists to identify what they should be eating, he was able to launch with two fruit smoothies that were as tasty as they were healthy.

What he did know was that securing listing with the UK’s most important multiples meant working with a distribution partner that understood the dynamics of the FMCG supply chain from start to finish.

“Boughey showed us how a consolidated warehousing and distribution model would allow us to service our retail customers, whatever the demand”, commented Paul. “Their scaleable logistics solution gives us real value for money and a reach that would otherwise be way beyond our means.”

The fact that a brand still managed from the Lindley family’s home is now available in 350 Sainsbury stores and at Tesco and Waitrose vindicates Paul’s decision to go with the UK’s leading ambient grocery logistics provider. As Boughey Managing Director Keith Forster observes:

“With around 500 pallets typically held at our Deeside depot, Ella’s Kitchen is by no means our largest customer. But its nationwide success shows that even without the throughput of the bigger brands, we can still offer a warehousing and distribution solution that allows them to compete at the very highest level. That’s the beauty of consolidation.”

The logistics world has changed beyond all recognition since Boughey was founded over thirty years ago as a bulk milk haulage company.  Nevertheless, the strategy that underpinned those modest beginnings is still at work today in an operation that encompasses over 1,000,000 ft² of warehousing space and a fleet of over 420 vehicles and trailers.

That strategy is shared-user services: a business model designed to help Boughey’s customers meet the availability and delivery targets of the multiple grocery retailers while driving down costs and allowing as much control as possible to remain with suppliers.

With 30 to 40 of Boughey’s larger customers providing a backbone to support shared user warehousing and 135 smaller clients contributing top-up stock in shared deliveries, it’s a system that offers flexibility, efficiency and economy for all parties.

Central to its success has been the drive by retailers over the last 10 years to push stock back up the supply chain, leading to a need for leaner, more frequent deliveries to RDCs of the kind Boughey is perfectly placed to provide.

So while ‘little and often’ means frequent, wasteful part-load deliveries for supplier dedicated operations, the critical mass of similar products being delivered to the same delivery points by Boughey means they can establish regular fixed booking times for consolidated loads in a seamless service that benefits retailers and suppliers alike.

Boughey MD Keith Forster believes it is an offer that can only grow in appeal as consolidation becomes essential for any business that wants to remain competitive:

“With moves by the IGD to champion consolidation on a cost and sustainability basis, we’re seeing major players like Nestlé, United Biscuits and others seeking to share space on one another’s delivery fleets to create consolidated loads. While it’s a radically different way of doing business to them, it’s second nature to us.

“No-one is in a better position to offer a more complete consolidated solution. Our relationship with the major multiples, particularly as nominated PCCs for Tesco, Sainsbury and Somerfield, gives us real insight into the demands of the retailers and the potential issues confronting suppliers.”

The Boughey service is supported by an advanced stock control IT infrastructure providing accurate and timely information to aid the flow through of suppliers’ products to retailers. The company also takes care of Chep pallet management, relieving customers of what can be a time consuming and costly responsibility, and provides a full onsite co-packing service.

The end result is a total shared consolidation platform that’s flexible and dynamic enough to cope with the demands of today’s fast moving retail industry… and whatever challenges that lie ahead over the next thirty years.

In the current climate, these appointments are significant, as Keith Forster, MD of Boughey explains: “This reorganisation signals commitment to the growth of the business. Boughey aim to provide the ultimate tailor made logistics package for clients, whatever their size, and the important investments we make in developing our staff and advancing our facilities, ensures we continue to deliver above and beyond our customers’ expectations.”

In the past year alone, Boughey has invested over £1 million in personnel development programmes, alongside staff facilities, driver training and recruitment. The new roles aim to enhance strategy toward customer servicing throughout the logistics business’ operation.

Bernard joins the team, having held senior positions at Princes Foods, Iceland, and S&A Foods, and consequently brings substantial experience of Boughey’s customers, their customers and their suppliers. On his new role, Bernard says: “I know first hand the difficulties to be faced in this business - and it’s all linked to the bottom line. Boughey recognises this and seeks to operate as much more than a haulage business. We need to offer 100% service level and give each customer what they need in order not to push any additional costs, or operational obstacles, along the chain. It’s all about pro-activity in every aspect, reading the market and anticipating and servicing immediately the expectations of the retailer – reactivity is not enough. ”

Keith Forster endorses this view: - “Retail strategy dictates how we develop. The move to de-stock is a case in point. Boughey benefits from a healthy customer spread - from large companies holding stock of up to 38,000 pallets, to smaller customers with just 20 pallets. Mutual benefits exist and everyone gains from the established consolidation expertise that Boughey offers.  All within the chain have their value and we must understand and focus on delivering excellence against their understandably varied demands. Bernard’s experience will shape a smarter customer interface and will be invaluable to the development of the Boughey business operations as a whole.”

Iain Lochrie’s new role as Customer Service Manager will encompass the administration, scheduling, quality control and returns functions – all of which have been amalgamated into a single department for more efficient, responsive customer servicing. Of the new approach, Iain says: - “Boughey has grown dramatically in the last 5 years and maintained good rapport with customers. But more can be done to monitor customer needs and build dialogue to sharpen the service we offer. The newly restructured department, with a Customer Service Advisor allocated to each customer, will guide customers through all aspects of the business, improve communications and ensure that satisfaction is a priority.”
One area of immediate change is with Boughey’s telephone priority system, ensuring all enquiries are handled efficiently. Additional training for Customer Service staff – involving immersion in all areas of the business, to broaden exposure to customer issues and expectations - aims to create a closer ‘team’ culture and promote more flexible, responsive customer servicing.

Forster concludes: “Boughey’s investment in people with industry foresight, new technologies and process improvements assists greatly in responding to the developing needs of customers and is key to success in our service offering. These new roles will help evolve the service to deliver against the rapidly-changing retail pressures and put more commitment toward working in tandem with our customers to provide a fully integrated logistics solution at all times.”

The Wardle-based logistics specialist has won a two-year contract with leading international food group, Associated British Foods (ABF).

ABF is a diversified international food, ingredients and retail group with sales of £6.8 billion and 85,000 employees in 43 countries. The major international manufacturer produces branded and private label grocery products, many of which are market-leading household names. Following the acquisition of Patak’s Foods last year ABF has brought their ethnic brands together under a single division known as AB World Foods which includes G Costa as well as Patak’s. 

The contract commences on 31st March and involves the storage and distribution for AB World Foods’ brands at the new £15 million Wardle storage development – G Costa (Blue Dragon, Maille mustards, French’s mustards and Tabasco sauces) and Patak’s.
 
Boughey has previously provided logistics solutions for Patak’s 300-strong product range and will now additionally store approximately 10,000 pallets of G Costa’s 800 product lines. The new total combined annual pallet throughput will be in excess of 140,000 pallets.
 
Paul Wildman, Supply Chain Director at AB World Foods said: “The logistics package that Boughey Distribution is able to deliver for these two brands will undoubtedly offer increased efficiencies and support the streamlining of these key brands’ UK logistics.”

G Costa manufactures a proportion of its products in Poland and imports a substantial volume from SE Asia, Continental Europe and the Americas. Until moving to Boughey, it operated its own warehouse in Aylesford, Kent and used a number of third party hauliers on a regional basis throughout the UK. Boughey’s 140-strong fleet will now deliver to the brand’s complete UK distribution network and service all the major retailers, including Tesco, Asda and J Sainsbury.

Keith Forster, MD at Boughey Distribution, added: “Delivering daily to all the major retailers enables us to develop and invest in leading consolidation programmes which save our customers time and money. This new contract is testament to how well our dedicated staff and service have supported Patak’s UK distribution over the past 2 years. Now with the additional G Costa brands we can strengthen the offering and efficiencies for ABF even further.”

A significant proportion of G Costa’s throughput (15%) is exported to a variety of countries in Europe and further afield; Boughey’s tailor-made logistics service will also incorporate a large stickering operation within its co packing facility to facilitate the sale of products via multilingual labelling.

Forster concludes: “We provide the ultimate tailor-made logistics package for all our clients, whatever their size, and pride ourselves on our dedicated approach to customer service. Our unique expertise enables us to offer truly seamless solutions.”

The distribution division of NWF Group plc has opened the doors to its brand new £15 million storage facility and staff recently celebrated moving into their new head offices.

The investment made by the leading local employer doubles the distribution company’s storage capacity and is creating over 250 new jobs for the area, including clerical, technical, management and warehousing roles. Boughey currently employs over 600 people at its Wardle and Deeside sites and invests heavily in supporting the local workforce.

Keith Forster, MD of Boughey Distribution, describes the new development as a key milestone for the company and adds that investing in the right people is crucial: “We provide the ultimate tailor made logistics package for all our clients, whatever their size, and the important investments we make in advancing our facilities and developing our staff ensures we continue to deliver above and beyond our customers’ expectations.

“We pride ourselves on our dedicated approach to developing our people and invest heavily in training and staff performance.”

In the past year alone, Boughey has invested over £1 million in developing personnel development programmes, staff facilities, driver training and recruitment.

Forster concludes: “Investing in new people, technologies and initiatives is key to Boughey’s success and we are proud of the company’s achievement to date.”

The company previously doubled its storage facility five years ago and has since increased its turnover from £8.5 million to £27.5 million, this new £15 million storage development is expected to further increase the company’s turnover to over £40 million this year.