1st Tier Automotive Logistics Company Delivers Change

Client

An automotive distribution company specialising in the movement of finished vehicles for large blue chip manufacturers throughout the UK and Europe.

 

Challenge

Having won a large number of contracts with major manufacturers, they were struggling to service the contracts in line with their contractual obligations.

Overcapacity and declining sales in the European Automotive market were having a major impact on turnover and there was a requirement for automotive operations and financial management change expertise.

 

Approach

Devise a programme of work to take responsibility for the full management of all budgetary, cost control, operational and financial planning strategies to ensure quality, fiscal control and profitability.

Conduct a cultural and financial assessment of the client’s operation.

Develop and deploy an extensive training programme to address the internal issues, build capability and aid self-sufficiency.

Apply Lean principles and Six Sigma techniques to the operation in order to reduce waste, minimise variation, deliver efficiencies and focus activity on value-added services.

Deploy a financial recovery plan to deliver structural savings and to streamline the operation.

Lever financial benefits from existing assets and work with the team to develop new, profitable business opportunities.

Standardise operational processes and procedures.

 

Outcome

Increased fleet size through the negotiation of a lease-to-purchase contract, achieving savings of £72K per truck.

Devised a damage management system which reduced damage claims from 70% to 15% within 3 months.

Identified, sourced and negotiated the lease of a secure compound with space for 3,500 vehicles, generating profit margins of 90%.

Negotiated a contract with a new supplier to increase the number of ad-hoc movements,  achieving an 80% reduction in dead mileage.

Negotiated the release of 2,500 vehicles and 20 transporters following the liquidation of a competitor, gaining owners’ permission to recover the assets generating c.£100k of additional sales.

Secured various new contracts with major automotive manufacturers.

 

The team’s detailed knowledge and outstanding service provision enabled us to transform our business in very short time frames.” Managing Director

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