3PL – Operational and Service Level Improvement

Global 3PL Provider

Implementation of a comprehensive Improvement Plan for a global 3PL provider, achieving cost reductions, enhancing service levels and leading to a strengthened customer-provider relationship.

Client

Global 3PL Provider

Date

October 3, 2023

Services

Logistics

Libra facilitated the design and implementation of a comprehensive Improvement Plan for a global 3PL provider, achieving cost reductions and enhancing service levels, leading to a strengthened customer-provider relationship.

Background

UK based Global 3PL with a leading B2B construction sector customer.

Challenge

To address issues with Service & Cost on a contract that had been acquired in the previous 12 months

In addition to creating an improvement plan for the site an analysis of current operational processes and ways of working was required to identify improvement opportunities and a path to sustainable implementation.

Libra was selected to provide an objective perspective, fresh eyes on the issue and to act as enablers for the site team and customer to realise their improvement plans.

Solution

The issues could be attributed to 3 key areas, Systems Deployment, Transitioning of Operations and Change Management.

An analysis was required to understand root cause of performance levels; this generated a Results Plan comprised of short to medium term actions, costs, benefits, timescales & owners.

A robust governance structure was implemented, empowering department leads with both ‘Strategic’ and ‘Continuous Improvement’ plans.

Facilitation was provided to specific highlighted improvement areas such as MCRS, Forecasting & Resourcing, WMS/System, People & Engagement and ‘Discrepancy Root Causes’ where a short-term containment measure was put in place; immediately impacting discrepancies, developing a longer-term solution strategy for discrepancy eradication.

Libra transitioned the improvement plan over to the 3PL,allowing them to take full ownership of delivery and a sustainable culture of continuous improvement.

Benefits

  • A 'One Improvement Plan' was established, consolidating all projects related to the site.
  • An independent analysis identified improvement opportunities of approximately £1.1m.
  • Site overspend was reduced from 44% to 3% against budget.
  • Key contractual service level targets were met.
  • Relationships between the customer and 3PL were improved
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