Implementing standardised KPIs across business units and logistics providers

Background

• A Global Food Manufacturer operating in most countries in the world, producing, procuring and selling food products to the global market via localised, mostly ‘standalone’ business units.

Client Objective

• To implement standardised Key Performance Indicators (KPIs) in Northern Europe, initially for 8 Logistics Service Providers (LSPs), as part of an initiative to create a central contract management business unit with standardised logistics contracts. 

Drewry Approach

• Interviewed the local logistics staff and determined current way of working with the LSP:
  • Asked the local logistics staff what their main pain points were.
  • Created a number of KPIs
  • Implemented and standardised repeated review meetings

Results Achieved

• Improved relationships (at day-to-day operational level and senior management level);
• More influence with the LSP due to ongoing interaction with senior management;
• Improvement in service levels to the manufacturer, which resulted in improved service levels to their end customer;
• 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 were clear on what is expected and needed, so that the other party could fulfill their obligations in the best way.