Case Study
A Courier Company planning to become a PVT LTD, however was struggling on the Compliance part and Unstructured processes.
Courier & Logistics Company
The Challenge
- Lack of Structured Process
- Poor Client Contract Management
- Heavy load on Supply Chain due to unstructured pick and drop schedules
- Lack of team structure
- Heavy cash flow issues due to high and overdue receivables
- Over Utilized OD leading to high interest cost
- Unskilled team
- Multiple systems/Software for each team
- No Reporting mechanism
The Solution
- End-to End Process Designing
- Restructuring of every department
- HR Function was introduced in the organization for hiring, training & track performance
- Single CRM was deployed for the entire organization to get information, data etc on single technology platform
- Weekly/monthly report review meetings initiated
- Re-departmentation done
- Teams were restructured by defining roles for each department/designation
The Outcome
- DSO reduced from 90 days to 40 days
- Out of 40 lakhs outstanding beyond 90 days 85% amount was recovered in 2 months
- The fully utilized OD of 16 lakhs was reduced to average of 2 lakhs
- The interest cost was reduced by 2.25 lakhs approx.. annually
- Interdepartmental communication, data management was simplified due to single technology platform
- Overall efficiency enhancement helped organization to increase annual sales by 20% (6 CR to 7.2 CR)