Recovering 3,400 PLN per month in a chemical wholesaler
We scrutinized expenses on logistics and warehousing. It turned out that 14% of costs were fees for empty runs and unnecessary insurance that no one had verified for 3 years.
Chem-Pol, a wholesaler from Wrocław, has been on the market for 8 years. Despite steady orders, the owner felt that money was slipping through his fingers, especially in the transport department.
The challenge
The owner, Mr. Andrzej, noticed that logistics costs were growing faster than his margin. For the last 3 years, no one had accurately checked contracts with external carriers or calculated how much fuel cost on routes that were duplicated.
It turned out that on average 6 times a week, a car left for a client with a load filling barely half the truck because the planner wanted to finish before 3:00 PM. Additionally, the company was paying insurance policies for two old forklifts that had been broken in the corner of the hall for 14 months. In total, 14% of operating expenses were a waste of cash.
Our approach
At Reformacja Biznesu Sp. z o.o., the rules are simple: hard data first. We sent a two-person team to the wholesaler, who for 11 business days analyzed every receipt and every invoice. We looked for gaps in everything, without beating around the bush.
We reviewed 156 recent transport invoices and spoke with 4 drivers. We wanted to know why the routes were so long and why no one verified fuel levels upon return. We weren't interested in theories, but in what happens on the yard at 6 AM.
The solution
We introduced a strict load planning system. Now a car leaves the base only when it has at least 83% load filling. If there is less goods, we combine orders from neighboring regions.
We also terminated 3 unfavorable insurance contracts and changed the fuel supplier to a local station that gave us a 12-grosz discount on every liter for cash payment. Specifically: we cleaned up the mess in paperwork that had been growing for years. No magic, just watching invoices and the clock.
Results
After three months of our work, Chem-Pol Wrocław keeps 3,400 PLN more in its pocket per month than before. That's over 40,000 PLN in annual savings that the owner can now spend on bonuses or office renovation.
Timeline
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September 2024Analysis of 156 invoices and logistics costs on site
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October 2024Negotiation of fuel rates and change of insurer
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October 2024Implementation of new route planning rules
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November 2024First full month with real profit of 3,400 PLN
"To be honest, at first I thought that 3,400 PLN was peanuts. But when I calculated that it's the price of a new forklift over a year, I changed my mind. Facts on the table and it works."