Logistics and Transport

Shortening decision time by 24.6% for a logistics company

The company struggled with decision paralysis. We introduced a dialogue system between the operations department and the board. Now key decisions are made in 1 day instead of 4.

–3 days in the decision process
ClientBlueWave Logistics
IndustryLogistics and Transport
TimelineMarch – June 2024

BlueWave Logistics from Perth had a serious problem with approving simple transport orders. The board and operations department couldn't get along, which blocked an average of 19 shipments every week. We introduced clear rules of the game that shortened the wait time for approval from 4 days to less than 24 hours.

Process OptimizationTransport LawCommunication AuditRisk Management

The challenge

The company lost exactly 12,430 AUD a month on delay penalties for loading alone. Operations director Lachlan Murphy admitted openly that 86.4% of emails regarding route changes got stuck in the board's inbox for at least 73 hours. Employees were afraid to take any steps without a signature from above because the regulations were unclear and outdated. Information chaos reigned, and drivers waited in parking lots, wasting fuel and time.

Our approach

For the first 3 weeks, we observed 14 operational meetings in the company's office on Adelaide Terrace. We analyzed 312 recent decision emails to see where the system was breaking. It turned out that internal transport law was being misinterpreted. We appointed a working group consisting of 3 warehouse managers and 1 board member. Together we sat at the table to write down new rules for cooperation and responsibility without the fluff.

The solution

We created a simple fast-track decision protocol that fits on one A4 page. We designated rigid financial thresholds (up to 1,450 AUD) that dispatchers can now decide on independently, without asking anyone for permission. Additionally, we prepared 4 specific contract templates with subcontractors. They eliminate the need for consultation with a lawyer for 92% of standard orders, which previously took entire days.

Results

Processes in the company took off, and people finally know what they are responsible for. The fear of making decisions disappeared because the rules are now clear to everyone — from the intern to the CEO.

–24.6%
Shortening of average decision time
0
Penalties for downtime in July 2024
1,450 AUD
Dispatcher's independent decision limit
43.5h
Monthly board time savings

Timeline

  1. March 2024
    Audit of 312 decision emails and site visit at the transport base.
  2. April 2024
    Regulation workshops for 12 operational team leaders.
  3. May 2024
    Test implementation of new decision thresholds on selected routes.
  4. June 2024
    Signing of final procedures and training on new contract templates.

"Honestly, we thought we had to hire more people for paperwork. NeoMetrics showed us that we just had to stop asking about every little thing. Now we work much more smoothly and without nerves."

Lachlan Murphy Operations Manager, BlueWave Logistics August 2024