The Path to Becoming an Integrated, Award-Winning Service Provider

Client Challenge

  • Our client, an enterprise from the European Top 300, was faced with the pressing challenge of effectively meeting the foreseeable changes in its industry. The profitability of the entire enterprise was coming under pressure.
  • The enterprise had around two dozen branch establishments which worked without any coordination among themselves, acting as local “principalities. Its distribution depended on competitors; the logistics costs incurred in the supply of more than 10,000 customers in Germany were threatening to rise enormously. Applications for investments amounting to nearly 50 million Euros from all divisions were piling up on the desk of the management board.

Mandat Intervention

  • Facilitating basic strategy meetings attended by the members of the management board and the most capable employees from the corporate branch establishments, we developed a process landscape using a top-down approach. as a part of the project team, we planned and designed a nationwide organizational service network. We supported the implementation of this organizational network locally in the different geographical regions. One branch establishments was closed for lack of perspective.
  • We designed and implemented a quality management system that consistently supports the core processes. In order to implement best practices, we found the best process solutions in all of Germany at the branch establishments and made them available to the whole enterprise.
  • Contrary to popular trends, we reintegrated the distribution processes sourced out to a competitor’s subsidiary (“insourcing”) and helped our client to build a transportation company from scratch.
  • In the course of a leadership conference, employees were informed of the necessary steps and were gained for participation in the project. We even managed to convince the employees’ representatives of the benefits of the projects.
  • By setting up a company-wide overall project control system we made sure that the management board now is updated on the status of all internal key projects practically in real time.

Results

  • Operating efficiency: Savings in non-recurring investments of more than 20 million Euros, with annually recurring savings of more than 4 million Euros through more efficient workflows. Up to 50% increase in productivity, record profits for several years in a row, making the enterprise the most profitable company in the industry, measured by the return on sales.
  • Quality: The company is the first business in its industry in Germany to have installed a certified quality management system. Delivery accuracy was raised to 99.9%; nearly all customers in Germany can now be reached within one hour.
  • Award: In its new function as the very first integrated service company, the enterprise was presented with both the German Logistics Award of the German Logistics Association (BVL) and the European Award for Logistics Excellence of the European Logistics Association (ELA) in the same year. Previous award-winners were, among others, Bosch-Siemens, BMW, Fiege Logistics, or Munich Airport.

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