SAICA Paper, a leader in the manufacture of paper for corrugated cardboard, has renewed its UK contract with transport operator CM Downton for a second time following a competitive tender in a deal worth over £4 million a year. The two companies have worked together since SAICA Paper opened its new paper mill at Partington, Manchester in 2012.
The contract covers the inbound transportation of full loads of recovered paper collected from various UK recycling sources into SAICA Paper’s paper mill, and the outbound delivery of full loads of paper reels to customers throughout the country. For this renewal Downton was able to reconfigure its component of SAICA Paper’s overall transport requirement. This enabled Downton to optimise traffic flows for the inbound and outbound elements of the operation to deliver a highly flexible, robust and cost-effective solution. The company has integrated vehicle movements with other contracts managed by its Runcorn depot to help reduce the total number of movements across its network, minimise empty vehicle miles and thus reduce costs. The resulting savings are shared with the customer in the form of a more competitive solution.
The operation involves around 13,000 inbound loads and 3,000 outbound loads each year, or around 65 loads per day in total. To support the operation, Downton maintains an on-site team of nine full-time employees covering management, customer liaison, shunting and strapping roles. Downton has undertaken significant continuous improvement work with SAICA Paper in the past year. This has included work on trailer design to reduce the number of claims resulting from wet or damaged paper reels. Despite an increase in total volumes, this work has resulted in a reduction in claims of around 20 per cent over the preceding year.
David Hutchings, Head of Business Development at CM Downton, said: “We have a strong working relationship with the customer and were able to demonstrate innovation, flexibility and value during the tender process to meet the client’s evolving requirement. This type of business profile fits well within our network model because there are fewer time window constraints on inbound and outbound movements than normal. This provides the flexibility to keep costs down so we can pass the savings on to the customer, in what is a very competitive market sector.”