Efficiency Improvement in a Leading Transportation Firm

Key Results

• Realised significant cost savings in fuel and administration projects. 

• Achieved substantial increases in freight sales revenue. 

• Witnessed a marked improvement in internal communication, customer service, and staff satisfaction.

Background

The client is the single largest and most efficient integrated transportation company in the Philippines, operating across both domestic and international sea and land delivery and logistics. One of its key entities was the largest passenger, transport and cargo shipping company in the country. Recognised as a forward-thinking organisation, the client had a history of seeking opportunities for development and growth. However, it faced increasing pressure from both domestic and international competitors. Furthermore, rising costs, particularly for fuel and capital equipment procured in US dollars, due to the devaluation of the Philippine Peso, presented a significant challenge to the company’s profitability.

The Challenge

The primary driver for engaging Renoir Implementation Services was the need to improve performance across the client’s business through business process re-engineering. The company was grappling with escalating operational costs and intensifying competition, which threatened its market position and profitability. The devaluation of the Philippine Peso against the US dollar, the currency used for major expenses like fuel and capital equipment, further exacerbated the financial pressures. Consequently, the client recognised the necessity for significant operational enhancements and sought a partner capable of delivering tangible and sustainable results.

What We Did

Renoir adopted a hands-on approach, collaborating directly with the client’s staff to implement their recommendations. The initial step involved a no-obligation preliminary survey of the client’s entire business to understand employee perspectives and identify areas for improvement. This survey confirmed the potential for significant benefits and established a positive working relationship between Renoir and the client’s team.  

Following this, Renoir facilitated an intensive learning process, working towards a structured agenda that involved the management team in all improvement initiatives. The implementation focused on three key areas: methods and processes, systems, and training. Renoir’s role was to drive, motivate, and coach the client’s team to analyse problems, identify opportunities, and implement sustainable solutions.  

Once buy-in and support for the necessary changes were secured, the Renoir team provided guidance and coaching during the implementation phase. Behavioural changes were fostered as managers and team leaders adopted new ways of working. Sophisticated monitoring systems were established to identify and eliminate the root causes of problems. A project was only deemed complete when the client’s management team could independently operate at the desired performance level.

The Results

The engagement with Renoir yielded substantial financial and behavioural results for the client over a two-year period. Specific projects within the client’s various divisions achieved significant outcomes. For instance, the fuel project resulted in $5,000,000 in cost savings, and the administration project saved $800,000. Furthermore, two freight sales initiatives led to increased revenue of $10,000,000 and $14,000,000, respectively. Even within their delivery and logistics company, a specific air project resulted in $200,000 cost savings and $2,000,000 increased revenue. These tangible financial benefits allowed the client to further expand its group.  

Operationally, the implemented solutions led to enhanced efficiencies, enabling the client to focus on newer business ventures. The coaching and training provided by Renoir consultants resulted in a noticeable improvement in how the client’s personnel managed the business and interacted with each other. Communication within the organisation dramatically improved, which positively impacted customer service and staff satisfaction. Almost six years after the completion of the projects, the positive impact of Renoir’s work continued to be evident, demonstrating the sustainability of the implemented changes and the effectiveness of Renoir’s methodology.