UPVC manufacturing and distribution business Eurocell has turned to Knights of Old, offering them a deal that will see the Kettering-based firm take over the transport operations from September
The move comes after the previous incumbent failed to deliver projected annual cost savings of £1.3m from the first year of its five-year contract, which was awarded at the end of 2014.
Eurocell attributed the cost-savings shortfall to “assumptions made at the inception of the contract over the ability to reduce historic warehouse labour costs, which were too optimistic”, in its 2016 annual report.
As a result Eurocell took the warehouse operations back in-house in January 2017 and began working to “deliver more efficient services and improve end to end customer focus and supply chain support”.
It is understood that Eurocell will continue to run the warehouse operation itself.
The win follows Knights of Old’s successful bid to become Irish parcel carrier CAE Delivers’ long-distance partner, which was revealed in January. Both contracts will add momentum to the haulier’s recovery from a challenging period that saw it record an operating loss of £2.7m in its most recent trading period, the year to 31 May 2017.