Stora Enso has recently completed the first year in its new purpose-built terminal located half a mile from the dockside at Hull. The new facility comprises a newly constructed 100,000ft² shed with an additional 100,000ft² of external space and an adjacent area of approximately 25 acres of land with the potential for expansion.
Some £1.5m has been invested in the new warehouse, concrete flooring throughout the facility and in a bespoke, state-of-the-art racking system for the external area. The new concrete flooring provides an extremely clean, dust-free environment.
The decision to move to the larger, purpose-built facility was made in order to overcome the constraints of the dockside operation and it has provided the opportunity to grow the business. The new facility holds in excess of 20,000m³ of timber in a range of products including joinery and structural softwood, and the fleet of new tractors and trailers can transfer timber from the dock at a rate of around 1,500m³ a day.
Since relocating there has been significant movement of stock, with a projected increase of up to 15% in volume terms over the previous year. This can be partly attributed to Stora Enso’s strong sales focus, but it is also a definite reflection of the operational efficiency of the new premises and particularly the new racking system, which has successfully modernised and simplified the process of picking and loading product.
Specific design
The new system, which was made by Wickens, has been specifically designed to meet Stora Enso’s needs and has the capacity to hold 12,000m³. Each lane contains a specific size, grade and product type and the rack location is printed on every order. A bar coding system on each pack completes the system and ensures total accuracy. Shortly, when fulfilling orders, the bar code will be scanned with a portable device, the information sent electronically to be invoiced and the stock list will be automatically adjusted.
UK and Ireland sales director Howard Sidney-Wilmot is pleased with the results. "The new facility has allowed us to increase the volume of stock we hold and this means we are able to service both existing and new customers directly from stock. Customers who are large enough to buy from the mill on a forward basis can balance their stock in the interim by buying from the terminal," he said.
It is also easier and less time-consuming than previously for customers to collect stock direct from the terminal. "We have several valued, long-standing customers who prefer to come on-site and buy in smaller quantities," said Mr Sidney-Wilmot. "It means they’re using their haulage more efficiently and that they have great flexibility with the range and quantities of product they can purchase in any one visit."
Long-term customer Steve Parkinson, supply chain director at John Brash & Co Ltd, who has been buying direct from the Stora Enso terminal since 2010, said the new arrangements had simplified the service.
"I used to buy direct from Stora Enso at the dockside and can really see the improvement this new facility has made on the service. It brings a new level of speed and efficiency to the process and means that our drivers can load up and get on the road quickly," said Mr Parkinson.
Customers who wish to purchase a mixed load of construction and joinery products on one vehicle can also be serviced at the Hull terminal. Orders can be processed on a very tight lead time, with even the possibility for next-day delivery.
Stora Enso’s customer service ethos is to work closely with all its customers to solve their supply and service issues and emphasis is placed on servicing the small buyers in exactly the same way as the larger buyers.
New products
The customer-friendly approach at the Hull terminal fits neatly with Stora Enso’s strategy to build new relationships with mid-tier merchants and the company is looking at several new bolt-on products to supplement its offer to existing customers and to take it into new markets.
And though there are no immediate plans to develop the adjacent area of vacant land, the potential for expansion that exists at the new facility works well with the overall strategy for going to new markets. "Because Stora Enso is a global company, there is no need to invest time and money sourcing new products and setting up trade agreements as these are already in place," said Mr Sidney-Wilmot.
"Stora Enso operations in other countries already have these products and thanks to the available space and potential for expansion at Hull we could now offer this additional product range."
