At a Glance
Brazilian logistics company in the steel sector engaged Renoir Consulting to address inefficiencies in its bulk contract operations, aiming to increase revenue through improved electromechanical availability and optimised management practices.
To tackle these challenges, Renoir implemented structured operations and maintenance routines, resulting in a 53% revenue increase and a 20% improvement in equipment performance—delivering $4.1 million in annualised gains.
This case study underscores how operational discipline translated into millions in value.
Key results
53% increase in revenue under the Production regime
16% increase in POS revenues compared to the baseline
42.5% growth in daily average transported volume
20% improvement in Total Effective Equipment Performance (TEEP) for the Production regime
12% improvement in TEEP for the POS regime
14% increase in Capital Overall Equipment Effectiveness (OEE)
$4.1 million in annualised financial gains
3:1 Return on Investment (ROI)
Background
Brazil’s logistics sector is one of the largest and most dynamic in Latin America. Its market value was estimated at USD 111.1 billion in 2025 and projected to reach USD 140.7 billion by 2030, growing at a compound annual growth rate (CAGR) of around 4.8%. The sector is characterised by substantial public and private investments to modernise infrastructure, particularly in rail, highways, and ports.
The client is one of the largest companies in Brazil, specialising in customised logistics solutions. It operates extensively across various sectors, including fleet rental and management, personnel transportation, cargo handling, automotive logistics, and urban mobility. These solutions are engineered to optimise supply chain operations, enhance customer experience, and support business growth by providing flexibility and scalability.
The Challenge
The client engaged Renoir Consulting to enhance operational efficiency within its steel department, specifically focusing on its bulk contract. This contract involves managing the transportation, handling, and storage of bulk materials related to steel production.
The primary objective was to boost revenue by improving electromechanical availability. The focus on improving electromechanical availability through a fully utilised management system indicates a strategic effort to enhance the client’s operational capabilities within its bulk contract in the steel department.
This approach suggests that efficiently handling large volumes of materials heavily depends on the reliable performance of machinery and equipment. Electromechanical availability is critical for efficient, reliable, high-quality steel production processes.
Benchmarking against Renoir’s world-class standards identified the need for improvement. This included evaluating the existing management system, analysing supervisory and frontline manager profiles, and conducting studies on change readiness, productivity, availability, performance, and quality.
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What We Did
Renoir adopted a structured approach that included analysis, implementation, and continuous improvement as follows:
Analysis Phase: Renoir conducted multiple studies to identify areas for improvement, which included technical, operational, and economic feasibility assessments, quantification of benefits, process mapping, and management system evaluation.
They also focused on identifying bottlenecks, constraints, gaps, duplications, and waste.
Implementation via Management Action Teams (MATs): A time-bound transformation program was designed to implement the client’s management system through Management Action Teams (MATs).
Operations Management: Focused on Total Effective Equipment Performance (TEEP).
Maintenance Management: Aimed at improving the electromechanical availability of assets.
Restructuring and Deployment: The implementation phase involved a complete restructuring of operational processes, including deploying field data collection tools and creating control tools tailored to the operational model.
Professional routines were redesigned, and best practices were implemented, which allowed leaders and managers to access up-to-date data for decision-making and more precise preventive action plans.
Data-Driven Management: Field data collection was established to create performance dashboards, structure performance meetings, and generate action plans. This enabled management based on facts and data, allowing the team to address process deviations and monitor their impact on project KPIs.
Training and Empowerment: Renoir Consulting trained and developed the client’s team on best practices, organisational changes, and the variable compensation policy. They also empowered the team to execute daily tasks more efficiently while respecting individual differences in profiles and knowledge levels.
This comprehensive approach enabled the client’s steel department to align company strategies with operational execution, address major risk areas, and enhance overall performance management.
Results
The final results of the project demonstrate significant improvements across various operational and financial metrics:
Revenue Increase: A 53% increase in revenue was achieved under the Production regime compared to the baseline, and a 16% increase in POS (Point of Sale) revenues compared to the baseline.
Volume Growth: There was a 42.5% growth in the daily average of transported volume relative to the baseline.
TEEP Improvement: The project led to a 20% improvement in Total Effective Equipment Performance (TEEP) for the Production regime and a 12% improvement in TEEP for the POS regime.
Financial Result: The project generated an annualised financial result of $4.1 million.
Capital OEE Increase: There was a 14% increase in Capital Overall Equipment Effectiveness (OEE).
Return on Investment (ROI): The project achieved an ROI of 3×1.
Qualitative Improvements: Beyond the quantitative results, the client reported increased organisation in their processes and enhanced workforce engagement. The project also contributed to normalising vehicle overloading and improving response times to daily issues.
Our logistics transformation experts have helped companies across Latin America achieve remarkable results. We specialise in identifying areas for improvement, streamlining processes, and empowering teams to achieve operational excellence, driving significant financial and qualitative results for their clients.
*We have intentionally omitted client-specific details to maintain strict confidentiality.
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