Profitable High-Frequency Micrologistics as a Central Challenge

Client Challenge

Following the fundamental decision to reintegrate logistics services back into the company, our client, the chief operations officer (COO) of a company with more than 3,000 employees, was faced with the challenge of setting up a new, profitable high-frequency micrologistics system as quickly as possible for supplying up to 20,000 points of sale several times a day.

Mandat Intervention

We supported the COO in the organizational and process-oriented design of the most promising solution in joint meetings held in a highly limited circle of participants. We worked with the CEO and the COO to develop draft proposals for the management and supervisory boards so that the new concept received the corresponding approvals from the boards.

In moderated meetings with the management of the newly founded logistics company, we drafted the entire detailed implementation concept, including the timeline and responsibilities. As co-pilots, we facilitated the implementation of the concept meticulously through precise project management, designed the content of the relevant business processes, trained headquarters staff, moderated project reviews and kept the board of directors in the loop, as the client, through regular reporting.

We developed a quality management system and created all of the relevant training documentation. We trained multipliers within the company throughout Germany in days-long interactive workshops, so that the imparted knowledge could later be passed on to other employees in a cascade.

In cooperation with the management of the logistics company and the COO of the parent company, we developed a sustainable concept to enable the company to accept logistics services from other customers. We monitored a pilot project to acquire a new customer for the logistics company.

Results

The logistics company assumed full control business operations within 10 months of its inception, 2 months earlier than planned. More than 1,000 vehicles supply over 20,000 POS, in some cases several times a day. If necessary, individual POS can be reached separately in the shortest possible time by special delivery.

The parent company has complete control over the value chain and thus over contacts to the POS.

The certified quality management system was established within 9 months. The certifier praised this feat, pointing out that it normally took “two to three years” to build such a system from scratch.

In its second year, the logistics company – designed as an internal service provider – had already acquired additional customers.

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