Before implementation
Background
- Proposed variable pricing for the cost of distribution centre and considered profit improvement measures in the distribution centre for the sake of customer (in financial sector) as well as own company (LSP).
Bottlenecks
- The customer was imposed a large cost during peak periods because the pricing was based on labour input.
- Since the service contract was based on the amount of labour input, it was difficult to suggest productivity improvement which may result in profit reduction of the LSP.
Visualisation using Logitan
- Visualisation of working hours per work category and staff
- Working hours per shipment destination were also made clear.
After implementation
Actions
- Introduced a variable pricing system based on actual workload.
- Visualisation of working hours per staff made it possible to give training suited individually.
Results
- Reduced customer’s logistics cost by variable pricing system
- Improved profit ratio of the LSP by increased work productivity resulted from individual trainings
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