Segen advised on supply chain transformation deal

Segen, the UK’s leading renewables distributor, has entered into a long-term contract with supply chain partner Wincanton to transform its warehousing and logistics capabilities.

UK-headquartered Segen is a global wholesale distributor of solar PV, energy storage systems, electric vehicle charging, and other associated components.

The partnership will see Segen consolidate its existing multiple warehouse facilities into a single 265,000 sq ft national distribution centre in Medway, Kent. A state-of-the-art warehouse management system will be deployed to improve stock visibility and enhance Segen’s customer experience. Wincanton will also be responsible for Segen’s transport and carrier network.

Stuart Price, partner in the Commercial team at Lodders, and Damian Kelly, head of the Employment team, were instructed to act for Segen, providing advice on the warehousing and transportation contract, as well as delivering commercial contract and employment advice in relation to the TUPE (Transfer or Undertakings (Protection of Employment)) process arising from the transfer of Segen’s service provision to an outsourced provider.

Expert commercial and employment advice

Speaking about the deal, commercial law and IP specialist Stuart Price says: “Our client Segen wanted to streamline its warehousing and logistics function and also centralise its services to a location with stronger transport links. The company identified that moving to an outsourced solution with a well-established logistics supplier would offer greater efficiencies and cost streamlining, as well as an improved service to its customers, by providing significant improvements to their ‘track and trace’ visibility.

“The warehousing and transportation contract was of significant value and duration with a number of complex considerations to make regarding the service provision itself, as well as the centralised premises. The project involved lengthy but collaborative negotiations between Lodders, in-house counsel for Segen and Wincanton, as well as external project management and HR support.”

Isabelle Woodward, Segen’s general counsel, comments: “It was a pleasure to work with the team at Lodders. The advice we received was commercial, clear, and efficient and I would not hesitate to instruct them again.”

In recent times, Lodders’ Commercial team has seen a marked increase in work within the alternative energy sectors, where innovation is booming: “The renewables industry is predicted to grow exponentially over the coming years,” Stuart adds, “as efforts to tackle the issues surrounding the cost-of-living crisis and climate change are stepped up.”

Supply chain transformation

Segen’s various warehouse facilitates will migrate to Kent in a staged approach over the next six months. The new operation is a key part of Segen’s commitment to help the UK solar industry hit its 2023 target of 70GW of deployment, whilst providing an enhanced customer experience.

Of the deal, David Rice, managing director of Segen UK, commented: “This partnership is essential for our growth ambitions. As the UK’s leading renewables distributor, we are taking the business and our customer experience to the next level. Our partnership with Wincanton and our joint vision of driving efficiency and sustainability improvements through innovation will mean we can do just that.”

Rachel Gilbey, managing director of general merchandise at Wincanton, added: “We are thrilled to be partnering with Segen to unlock their growth potential. The solution includes the deployment of Wincanton’s warehouse management and transport control tower technology, which alongside our great people, will deliver sustainable supply chain value to Segen and its customers.”

For more information, read the full press release here.