About Company
A well-known American freight forwarding business that excels in providing full global logistics services and is committed to offering effective and affordable solutions for international logistics and shipping, focusing on supply chain optimization and on-time delivery. However, like many logistics companies, struggled to control operating costs and improve employee productivity to keep outstanding service standards.
Challenges
High Job Execution Costs: As the client base grew and shipment volumes increased, the company’s job execution costs soared. Handling tasks like tracking shipments and preparing export documents required a lot of work and money.
Limited productivity per person: Each person was accountable for around 451 jobs every year, restricting the company’s ability to scale its operations effectively.
Low Efficiency in Customer-Facing Roles: Only 14% of its workers, worked in customer-facing roles, restricting the company’s ability to engage with customers and provide personalized service. This mismatch influenced both customer satisfaction and overall service delivery.
Solutions Implemented
To address these challenges, the US-Based Logistics Company worked with FOS Desk, a prominent BPO provider that specializes in logistics operations. FOS Desk conducted a number of significant initiatives to optimize its procedures and increase productivity.
Export Documentation: The FOS Desk improved the export documentation process, making it faster and more precise to complete paperwork, which is crucial for international freight forwarding.
Cartage Coordination: By better coordinating transportation services, the FOS Desk reduced delays and allowed for smoother cargo travels between hubs and destinations.
Warehouse Coordination: The FOS Desk improved the company’s warehouse operations, resulting in better resource allocation and reduced overhead costs.
Shipment Tracking: Using a real-time shipment tracking system boosted visibility and decreased human effort, ensuring that clients received the most up-to-date freight information.
Results
32% Increase in Productivity: The US-Based Logistics Company experienced a 32% improvement in job productivity, growing from 451 to 594 jobs handled per person each year. This enabled the company to manage more shipments without recruiting more people.
39% Reduction in Execution Costs: The cost per full-time equivalent (FTE) person to manage jobs fell from $221 to $134. This reduction was achieved through streamlined procedures and more efficient resource utilization.
34% Increase in Customer-Facing Resources: By outsourcing back-end tasks to the FOS Desk, the company was able to increase the proportion of customer-facing people from 14% to 48%. This change enabled the company to improve customer service and provide more individualized attention to clients.
Financial Impact
Annual Savings: It saved $2.6 million in total costs, which could be reinvested in the company for growth and development.
Real Estate Savings: It saved $265,642 on real estate expenses because to more efficient warehouse operations.
Payroll Savings: It saved $2,527,524 in payroll costs by reducing the number of full-time employees required for non-customer-facing positions.
Conclusion
The US-Based Logistics Company’s collaboration with the FOS Desk resulted in considerable operational and expense benefits. The 32% increase in productivity, 39% reduction in task execution expenses, and $2.6 million in annual savings all demonstrated the effectiveness of FOS Desk’s specialist BPO capabilities. With improved procedures in place, the company got better positioned to meet the growing demands of the freight forwarding industry while maintaining high service standards.
Are you a logistics company facing challenges with rising costs, limited productivity, and customer satisfaction? Let the FOS Desk help you. Contact us today to simplify your business operations!