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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

 

Cath Earl

Cath Earl

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