Case Study
Successful Transformation of Logistics and Customer Service for a Retail E-Commerce Company
Executive Interim COO streamlines operations, leading to positive results in the furniture industry
The Client
E-Commerce Transformation in the Furniture Sector
A European-listed trading company acquired a German e-commerce start-up specializing in furniture. Post-acquisition, the e-commerce company experienced a significant revenue loss, resulting in negative operating margins. A subsequent acquisition of a competitor also failed to meet expectations, further compounding the company’s financial struggles.
After several unsuccessful attempts to improve operations, the parent company decided to replace the CEO of its German subsidiary to regain profitability and restore operational efficiency.
The Challenge
Overcoming Operation Inefficiencies and Leadership Gaps
The appointed Interim COO was given three core objectives:
- Support the new CEO in navigating the company’s operations.
- Overhaul logistics and customer service operations.
- Integrate and optimize the add-on competitor acquisition.
Several internal challenges were revealed, such as inefficient logistics processes, outdated IT systems, underqualified staff, and unsuitable warehouse facilities. Historically, the founder made decisions independently, leaving the management team with little authority or decision-making input.
Additionally, the company lacked key performance indicators (KPIs), resulting in decisions based primarily on gut instinct, with limited budget oversight and no clear metrics for tracking operational performance.
The Solution
Strategic Solutions Implemented by the Interim COO
The experienced Interim COO, with a background in business transformation and restructuring, implemented a series of impactful changes:
- Process and Structural Optimization: Workflows and responsibilities were redefined and streamlined across departments, ensuring smoother operations. KPIs were introduced and regularly monitored to provide clear metrics for daily decision-making.
- Mentorship and Leadership Development: The Interim COO actively mentored managers, fostering a culture of independent problem-solving and accountability. Managers were encouraged to take ownership of issues and lead their teams effectively.
- Logistics Tender and Evaluation: A tender process for logistics outsourcing was initiated, with third-party providers evaluated for efficiency and cost-effectiveness.
- Customer Service Enhancement: A chatbot was implemented to handle routine inquiries, reducing customer service personnel costs and improving response times. Additionally, an external call center was engaged to handle peak customer service periods.
The Results
Increased Efficiency and Reduced Costs
The operational overhaul yielded significant improvements in both logistics and customer service:
- 20% reduction in logistics personnel costs due to process optimization and outsourcing.
- 10% reduction in customer service costs through chatbot implementation and the integration of an external call center.
- Improved productivity across both departments, thanks to KPI-driven management and continuous performance tracking.
- Reduced absence rates as managers were encouraged to engage more directly with on-the-ground operations.
To further align costs with the seasonality of the furniture industry, annual working time accounts were introduced, enabling the company to manage staffing levels and costs more efficiently.
Despite a challenging market environment, the company returned to profitability, with positive cash flows, reduced fixed costs, and streamlined operations.
Sustainable Transformation and Handover
As the project progressed, the Interim COO ensured a step-by-step handover to the internal team, embedding the improvements into the company’s long-term operational strategy. This approach guaranteed the sustainability of the changes implemented and the continued positive results for the company.
Contact Us
Ready to Transform Your Business Operations?
If your company is facing operational challenges or looking to improve efficiency in logistics and customer service, Boyden’s team of experienced interim executives can help. With a proven track record of delivering sustainable results across industries, we are ready to optimize your business processes and drive profitability.
Contact Dr. Thorsten Doerr today to learn how our leadership and transformation solutions can set your company on the path to success.
Get in touch for a consultation and take the first step toward operational excellence.
