At a Glance
- The client, a market leader in logistics, sought Renoir to enhance its delivery performance due to operational inefficiencies.
- Faced with challenges such as inadequate management control, inconsistent manpower planning, and a lack of systematic problem-solving, client initiated a project focused on redesigning core processes and implementing a robust management control system.
- This case study breaks down how Renoir works with client on a data-driven transformation achieve of a 90% fulfilment rate.
Key results
Installed daily fulfilment performance KPIs, achieving a 90% fulfilment rate.
Achieved an 18% improvement in on-time delivery performance, reaching 94% from a baseline of 80%.
Improved delivery zone planning leading to increased productivity and better workload management for delivery personnel.
Redesigned and standardised in-hub processes to improve efficiency and resource allocation.
Background
The client stands as the market leader in the logistics sector within the Philippines, boasting over 1,200 branches both domestically and internationally. Their service portfolio encompasses a wide array of logistics solutions for both consumers and businesses, including mail, parcel and cargo logistics, bill payments, remittances, warehousing, cross-docking, and cash-on-delivery services.
In their pursuit of maintaining market leadership through continuous improvement, the client established a partnership with Renoir.
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Reduce Operating Costs with Optimized Performance Management
Vendor management saves healthcare centre $12 million
Vendor management saves healthcare centre $12 million
Reduce Operating Costs with Optimized Performance Management
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“Renoir have been instrumental in being able to transform our organization into being data driven, through the implementation of systems, visibility and active supervision.“
– Chief Marketing Officer
Analysis
The project was initiated to address critical inefficiencies in the delivery system. The main challenges identified included:
- Inadequate management control practices, with limited data-driven decision-making and lack of structured KPIs and SLAs.
- Excessive administrative burdens on first- and second-line supervisors, detracting from active staff management.
- Variability in delivery productivity due to inconsistent manpower planning.
- Disparities in the span of control (SOC) within the delivery department, leading to inefficiencies in supervision.
- Absence of a structured root cause analysis framework to address deviations from planned performance.
Project Approach
The analysis underscored the necessity for fundamental improvements to the client’s core processes and management control systems, which were found to be inadequate and contributing to suboptimal staffing, low delivery performance, and operational inefficiencies.
A dedicated team comprising six full-time client taskforce members and Renoir consultants was established.
The key approach included:
Piloting enhanced operational processes in select delivery hubs to test and refine efficiency improvements.
Extending these processes to 16 additional hubs, covering 52% of the company’s total logistics volume.
A steering committee was established consisting of senior executives, the client’s top delivery manager, and Renoir’s management. This committee was responsible for reviewing the progress of the project, evaluating the performance of each delivery hub, making strategic decisions, and resolving any obstacles that emerged.
Implementation
The implementation phase involved several key activities undertaken in collaboration between Renoir and the client.
The following initiatives were executed to drive improvement:
Redesigned In-Hub Processes: Defined clear roles and responsibilities for different delivery stages (pre-delivery, delivery, and post-delivery), optimising manpower allocation.
Enhanced Manpower Planning: Implemented improved delivery zone planning, setting clear capacity expectations per delivery personnel.
Restructured Organisational Hierarchy: Adjusted the span of control to ensure more effective oversight from regional managers to delivery team leaders.
Fast-Tracking Handheld Device Deployment: Deployed handheld devices across delivery teams to improve tracking and efficiency.
Proactive Vehicle Maintenance: Introduced checklists for monitoring the condition of delivery vehicles, reducing operational disruptions due to breakdowns.
Strengthened Management Control Systems: Implemented a robust system to drive enhanced operational processes incorporating standardised reports, performance KPIs, and regular review processes.
Results
These actions led to tangible results such as more efficient in-hub processes, allowing more time for delivery. The newly set-up pre-delivery team accelerated parcel sorting. Clearer roles and responsibilities fostered a culture of accountability.
Key performance indicators like fulfilment rate allow for earlier performance management and better insight. Daily targets mean teams now understand the reasons for non-delivery.
Renpor tailored solutions streamlined processes, resulting in a significant improvement in on-time delivery performance from 80% to 94%, demonstrating Renoir’s instrumental role in transforming the client into a data-driven organisation through the implementation of control systems, visibility, and active supervision.
*Client names and details are omitted for confidentiality while preserving the case study’s integrity.
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