Exel, the global leader in supply chain management, is a partner in one of two external consortia that have been shortlisted to manage the Ministry of Defence's (MoD) new logistics contract that will drive cost savings and service improvements through the supply chains of the Army, Navy and Air Force under the Future Defence Supply Chain initiative (FDSCi). The decision on the successful provider is likely in March 2005 with the new operation due to come into effect in November next year.
Exel has reached the final stage as part of the Defence Supply Chain Solutions (DSCS) consortium, a special-purpose vehicle to be set up with defence industry specialists, Devonport Management Limited (DML), who manage the Devonport dockyard for the MoD. In-house proposals are being considered alongside the external ones.
Exel has a long and successful history with the MoD going back some 20 years. Most recently, just a year ago, the company won a 42 million contract to handle the Armed Forces' freight forwarding of stores and equipment worldwide. This experience, together with Exel's in-depth experience of global end-to-end supply chain management, and the scale of its resources with some 109,000 employees in more than 120 countries, have all been, the company believes, factors in its shortlisting. The FDSCi represents a significant change in the MoD's approach to its supply chains. Instead of six different agencies, there will be just one logistics provider, expected to drive forward major cultural change in order to improve supply chain quality while unlocking new efficiencies and substantial cost savings.