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

By Dr. Thorsten Dörr

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:

  1. Support the new CEO in navigating the company’s operations.
  2. Overhaul logistics and customer service operations.
  3. 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Several internal challenges were revealed, such as inefficient logistics processes, outdated IT systems, underqualified staff, and unsuitable warehouse facilities.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:

The Results

Increased Efficiency and Reduced Costs

The operational overhaul yielded significant improvements in both logistics and customer service:

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.

About the Author
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