Salvation Army Trading Company Ltd (SATCOL)

SATCOL is a commercial partnership between registered charity the Salvation Army and Kettering Textiles Ltd. Kettering Textiles collects and sorts donated second hand items, a proportion of which is sold through SATCOL's retail outlets. SATCOL owns and operates 42 UK shops, generating an income of £5.8M and profits of £0.8M for the charity.

PPS was called in at the inception of a new SATCOL venture. Our remit was to examine the current jointly managed supply chain and create a strategy which could service the new initiative and its growth to maximum efficiency over the next five years.

The PPS team carried out a detailed analysis of the existing supply chain plus gap analyses against current best practice. This included examinations of factory operations, organisational structure, transportation and planning, retail warehousing and information systems. It became apparent that the standing procedures would not support and sustain the ambitious new initiative.

PPS designed and documented a new supply chain that would effectively service the new venture. Recommendations began with a reallocation of duties shared between SATCOL and Kettering Textiles Limited to reflect clear lines of responsibility. PPS proposed means of brokerage for product unsuitable for retail, a new planning and transportation function, a new process for retail preparation, the introduction of a third party logistics operator to aid warehousing and distribution, tightening of specific controls, plus a reapportioning of sorted to raw product, thus significantly increasing profit margins for the joint businesses.

PPS also suggested new, regulation-compliant methods for collecting product. Other revisions included relocation of departments for greatest efficiency, appointment of relevant management personnel and redefinition of selected job descriptions.