Greeting cards business Riverdale Publishing has appointed DHL Exel Supply Chain to streamline its logistics operations following its move to outsource the majority of its card production to China.

Originally based in a Victorian mill in Skipton, Yorkshire, the business, working closely with DHL, has moved to a modern 110,00 sq ft facility at nearby Silsden. Whereas the Skipton site was on seven floors, requiring the use of other warehouse facilities to store cards for onward dispatch, the new site allows easy access to store and manage the 80 million plus cards produced every year by Riverdale.

As part of the contract, DHL provides a full warehousing solution, comprising container unloading, palletization of products as well as product picking ready for onward transport.

Philip Needham chief executive of Riverdale, said: "The greeting cards market is highly competitive and we needed to source globally to ensure we were able to reduce costs while maintaining card quality. We selected DHL as our logistics partner due to its pro-active approach to supply chain problem-solving and its global capability.

With the change in our business model, we needed a logistics expert that could control our supply chain function from start to finish. DHL has been able to facilitate our outsourcing requirements, while achieving supply chain visibility at every stage of the process."

Since moving operations to Silsden, Riverdale has reduced its headcount by approximately 30 per cent, while increasing its throughput of cards and other giftware products to wholesalers. This has created an efficient business model, securing up to 20 jobs in the Yorkshire region.

Phil Roe, managing director of DHL's manufacturing division, said: "Like many UK businesses, Riverdale is facing huge competition from players that are sourcing globally using lean supply chain techniques. Working closely with the new management team, we have shown how better supply chain management can transform as business and provide a real competitive advantage. We added value by helping the business to move to a single site, where efficiencies could be generated. Utilising our systems and experience has also given Riverdale the confidence to source its materials from overseas suppliers, while providing total supply chain visibility."

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