AN EXPRESS DELIVERY COMPANY
As a consequence of the global financial crisis, FastMove Log Co. group decided to freeze headcounts in all its business units, including Vietnam. In the meantime, express mail and freight market in Vietnam was still growing, urging operations to provide more capacity. The Country Manager of FastMove Log Co. asked CEL to increase operations productivity to cope with the growing demand while maintaining low fixed costs.
“PMS, optimization, decision support”
CEL proposed to FastMove Log Co. a specific approach to explore all the productivity opportunities over 3 aspects:
We developed in collaboration with operations team a comprehensive performance management system, with clear targets in line with business requirement (+20% productivity, stable quality).
We initiated and led a comprehensive improvement project, based on root cause analysis, spot actions and quick implementation to generate significant waste reduction.
One of the biggest source of poor productivity laid in the disconnection between what Sales & Marketing promise to customers and what operations can efficiently deliver. A consensus had to be found through cross-functional meetings, agreements, procedures and exception management.
After 4 months, a sustainable 20% productivity increase was obtained without any lay-off or capital expenditure. A qualitative benefit of this project has been the involvement of all departments toward the productivity objective. It was the 1st opportunity that allowed every manager to break functional barriers. A new collaborative corporate mindset had been created.
Supply Chain & Operations In Emerging Markets