This company is one of Canada’s largest integrated energy companies. Their ground transportation services are delivered through a contractor, which is one of the main bus operators in the region. At the start of 2011 our client and the contractor entered into a new 10-year cost-plus contract, which rewarded inefficiencies and contained no incentives for improvement. With costs due to escalate by a staggering $1bn over the 10 years and a consistently poor level of service, our client lacked the organizational capability to proactively manage their transport provider. That was when the client asked Maine Pointe to help them achieve that capability.
Maine Pointe quickly established that our client did not have robust processes in place to effectively monitor and review service levels and costs for the 300 vehicles (around 45% of the contractors fleet) they were utilizing. Maine Pointe deployed a multi-faceted solution to give them better control and visibility. Our solution included:
Maine Pointe’s multi-faceted solution provided our client, with the tools they needed to gain control of their ground transportation. As a direct result, our client was able to make significant and sustainable cost savings:
In addition, greater visibility enabled this client to target waste and strengthened their negotiating position with the contractor.