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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.

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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.

 

Client Objectives

  • 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

 

Drewry Approach

  • 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

 

Results Achieved

  • 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

 

Key Contacts

Cath Earl

Cath Earl

Product Manager, Drewry Benchmarking Club