Standardised KPI / QBR program implementation
Client: Global Food Manufacturer
A global food manufacturer was seeking to create a central contract management business unit, and standardise logistics contracts and logistic service provider management (LSP) in Northern Europe, initially across 8 LSPs.
Background and situation
Global Food Manufacturer operating in most countries in the world. Producing, procuring and selling food products to the Global Market.
Localised, mostly ‘stand alone’ business units.
- To create a central contract management business unit, and standardise the logistics contracts and logistic service provider management (LSP) in Northern Europe, across initially 8 LPS.
- To integrate the logistics aspects of several acquisitions
- Interviewed the local logistics staff and determined current way of working with the LSP
- General Management (mostly day-to-day, issues exception management, fire-fighting
- Clear and concise Pricing Structure removing ambiguity and double charging / non-agreed charges
- Introduced standard Contracts (those in place mostly referring to the rates)
- Discover pain points among local logistics staff
- Created a number of KPIs that would enable Manufacturer to:
- Measure the current performance of their LSPs
- Set realistic stretch targets
- Implement standard contract language regarding LSP service expectations
Implemented and standardised:
- Regular Review Meetings
- Regular interaction at senior level
- Clarity on expectations
- Objective service measuring
Identify and create focus on target improvement areas
- Improved relationships (at day-to-day operational level and senior management level)
- More influence with the LSP due to regular interaction with senior management
- Improvement in service levels to the manufacturer, which in-turn resulted in improved service levels to their end customers
- Cost saving initiatives identified and implemented, directly affecting the bottom line of the manufacturer
- Longer term initiatives discussed and implemented
- Clearer pricing structure and rate review guidelines
- Paved the way to more easily integrate the logistics aspects of acquisitions / merging with other companies
- Created pro-active, positive culture
- Both sides clear on what is expected and needed so that the other party could fulfil their obligations in the best way
- Easier day-to-day running of the business, creating a happier and more productive workforce.
"We were very satisfied with the results achieved and would willingly recommend Drewry."
Global Food Manufacturer