How a logistics company overhauled its operations to handle scale

A tale of how a West-Africa based logistics company became truly swift.

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In the activity packed and high energy streets of the West African logistics industry, Swift Clear had built its reputation on being the go-to clearing and forwarding company for businesses across the region. Their promise was simple: swift, reliable customs clearance for every shipment. But as success brought a surge in demand, with shipment volumes skyrocketing by 50% year-over-year (YOY), Swift Clear found itself caught in a perfect storm of its own making.

The once streamlined customs clearance process began to creak under the weight of increased volume. Clearance times stretched from hours into days, and the ripple effects were felt throughout the supply chain. Storage costs mounted as goods languished in bonded warehouses, eating into Swift Clear's profits. Worse still, the delays were testing the patience of longstanding clients, putting hard earned relationships at risk. Swift Clear's leadership knew they needed to act fast to prevent their success from becoming their undoing.

That’s where we came in. Our team dove deep into Swift Clear's operations, armed with a blend of industry knowledge and innovative problem solving techniques. We didn't just see a backlog of shipments; we saw a chance to revolutionize how a thriving logistics company handles scale.

Through a carefully crafted combination of process re-engineering, strategic automation, and staff upskilling, we helped Swift Clear clear their backlog, and build a customs clearance operation ready for future growth. The results spoke volumes: clearance times were slashed by 60%, revenue increased by 45%, and client satisfaction scores soared from 75% to 91%. But even more tellingly, Swift Clear became able to handle a further 30% increase in volume over the next quarter – with ease.

This transformation positioned Swift Clear for sustained success in an increasingly competitive industry.

Background

Founded in 1995, Swift Clear had become a rising star in West Africa’s competitive logistics landscape over the years. What started as a small operation with a handful of clients blossomed into a mid-sized clearing and forwarding powerhouse, serving over 500 businesses across the region by 2023. In addition to their intentionality in customer service, their success was built on a reputation for speed and reliability, particularly in customs clearance for time sensitive shipments like perishables and just-in-time manufacturing components.

As their client base expanded, so did the complexity of their operations. They found themselves handling an increasingly diverse range of goods, from standard commercial products to specialized items requiring intricate documentation. This diversity, coupled with a 50% YOY increase in shipment volume, began to strain Swift Clear's once efficient customs clearance process.

When we looked under the hood, we found that the root of the problem was in their reliance on largely manual processes that had served them well in their early days. Staff were spending hours manually inputting data, cross checking regulations, and communicating with customs officials. As volumes increased, these manual processes became bottlenecks, leading to a cascade of issues:

1. Clearance times ballooned from an average of 4 hours → 24+ hours for standard shipments.

2. Error rates in documentation climbed from less than 1% → ~5%, further delaying clearances.

3. Staff were overwhelmed, often working overtime to manage the backlog, leading to burnout and increased turnover.

The ripple effects of these operational challenges were felt throughout Swift Clear's business:

1. Financial Impact: Storage costs skyrocketed as goods waited longer in bonded warehouses. These costs, which are often difficult to pass on to clients, began to eat into their profit margins, reducing them from 15% to a concerning 8%. In addition, some of the added costs imposed by customs as a result were also usually difficult to pass on to clients in an effort to preserve the relationship and secure long-term work by being their clients’ vendor of choice, further ate into their margins.

2. Client Relationships: Long-standing clients, accustomed to Swift Clear's previously stellar service, began to voice their frustrations. Client satisfaction scores dropped to 75%, and Swift Clear lost 3 major accounts in a single quarter – a first in the company's history.

3. Competitive Position: As word spread of Swift Clear's struggles, competitors began to make inroads with their client base. Swift Clear's market share, which had been steadily growing, plateaued and then began to decline.

4. Employee Morale: The pressure to maintain service levels in the face of increasing volumes led to staff burnout. Employee turnover rates doubled, further exacerbating the operational challenges.

5. Regulatory Scrutiny: The increase in documentation errors caught the attention of customs authorities, leading to more frequent audits and the risk of fines or penalties.

Recognizing the existential threat these challenges posed to their business, Swift Clear's leadership knew they needed expert help. They reached out to us with an urgent yet comprehensive request:

1. Conduct a thorough analysis of their current customs clearance processes

2. Identify bottlenecks and inefficiencies in their operations

3. Develop a strategy to streamline processes and reduce clearance times

4. Propose solutions to improve accuracy and reduce error rates

5. Recommend ways to scale operations efficiently to handle future growth

6. Assist in implementing changes with minimal disruption to ongoing operations

Our Approach

When we initially stepped into their headquarters, we knew we weren't just dealing with a simple case of growing pains. You could sense the urgency, and the faces of the staff told a story of mounting pressure. To further understand what the problem was, we shadowed their day-to-day workflow, analyzed historical data to identify patterns and anomalies that could shed more light on the root cause, interviewed key team members to gather diverse perspectives of the challenges experienced, and spent time with some of the frontline staff who were living this reality:

With our initial observations, we moved into the analysis phase:

1. Process Mapping and Value Stream Analysis: We created digital maps of their entire customs clearance process. This allowed us to visualize bottlenecks and inefficiencies across the board.

2. Time-Motion Studies: Our team conducted time-motion studies, breaking down each task into its component parts and identifying areas where time was being lost.

3. Statistical Process Control (SPC): We applied SPC techniques to Swift Clear's historical data, enabling us to distinguish between common cause variations and special cause variations in their process performance.

4. Root Cause Analysis: We dug deep into each identified problem, peeling back layers to uncover the fundamental issues at play.

5. Benchmarking: We compared Swift Clear's performance metrics against industry best practices and high-performing competitors, identifying gaps and opportunities for improvement.

As we synthesized all these data, a clear picture began to form. We narrowed down 3 primary root causes of their efficiency decline:

1. Technology Gap: Swift Clear's reliance on manual processes and outdated software was creating a bottleneck in data entry and document processing. This was the primary driver behind the increased clearance times and rising error rates.

2. Skill Mismatch: The rapid growth had outpaced their ability to train and upskill their workforce. Many employees were struggling to handle the increasing complexity of shipments, leading to errors and delays.

3. Process Fragmentation: As they grew, new processes had been added in a piecemeal fashion, creating silos and redundancies. This lack of integration was causing communication breakdowns and inefficiencies across the organization.

And to validate these findings, we spent time with the leadership team, demonstrating how these root causes were impacting their operations. This collaborative approach confirmed our analysis and also began to build buy in for the changes that would be necessary to address these issues.

Throughout our analysis, we employed several approaches like Process Walkthroughs to help them truly understand the day-to-day challenges faced by their staff; Cross-Industry Insight Application where we applied best practices from adjacent indsutries facing similar challenges — for instance, we adapted quality control techniques from the manufacturing sector to Swift Clear’s document processing workflows. With all of these, we were able to gain a comprehensive understanding of their challenges and identify primary leverage points to drive transformational change.

Our Recommendation

Using all we found, we developed a comprehensive strategy we jokingly termed Operation Swift Transformation. This 3-pronged approach was designed to address the root causes we identified while positioning Swift Clear for sustainable, long-term growth.

The pillars of our strategy were:

Technological Leap: Modernizing Swift Clear's digital infrastructure to streamline operations and reduce manual workload.

Talent Elevation: Upskilling the workforce and optimizing human resource allocation to meet the demands of a growing, complex business.

Process Perfection: Reengineering core processes to eliminate fragmentation and enhance overall efficiency.

More specifically, our recommendations within each pillar were:

These recommendations were crafted to address Swift Clear's challenges wholistically:

1. Reducing Clearance Times: The new CMS would speed up data entry and document processing. We projected this could cut average clearance times from 24+ hours back to under 6 hours for standard shipments.

2. Minimizing Errors: Real-time validation in the CMS, combined with the upskilled workforce, would significantly reduce documentation errors. We estimated this could bring error rates down from 5% to under 0.7%.

3. Enhancing Scalability: The cloud-based ERP system and reengineered processes would allow Swift Clear to handle increased volumes without a proportional increase in staff or resources. We projected they could manage a 100% increase in volume with only a 30% increase in operational costs at the most.

4. Improving Employee Satisfaction: By automating repetitive tasks and providing clear career development paths, we anticipated a significant boost in employee morale and a reduction in turnover rates.

5. Regaining Competitive Edge: The combination of faster clearance times, lower error rates, and enhanced client communication (facilitated by the integrated ERP) would help Swift Clear retain existing clients and attract new ones.

The Outcome

Swift Clear excitedly embraced our recommendations and implemented them over a 12-month period. The process was divided into three phases, aligning with our strategic pillars:

• Months 1-4: Technological Leap

• Months 3-8: Talent Elevation (overlapping with tech implementation)

• Months 6-12: Process Perfection (building on the new tech and upskilled workforce)

This phased approach allowed for quick wins early on while building towards comprehensive, long-term improvements. As CEO, Idaya, noted

“The transformation was like watching a time-lapse of a caterpillar turning into a butterfly. Every week brought noticeable improvements."

As a result, Operation Swift Transformation put them on track to achieve:

1. Customs Clearance Efficiency:

   • Average clearance time reduced from 24+ hours → 4.75 hours

   • Percentage of shipments cleared within 6 hours increased from 20% → 92%

2. Error Rates and Quality:

   • Documentation error rate decreased from 5% → 0.3%

   • Customs authority audit findings dropped by 98%

3. Operational Capacity and Scalability:

   • Shipment volume increased by 75% with only a 17% increase in operational costs

   • Staff overtime reduced by 62% despite increased volume

4. Customer Satisfaction and Retention:

   • Client satisfaction scores improved from 75% → 91%

   • Client retention rate increased from 82% → 97%

5. Employee Engagement and Productivity:

   • Employee satisfaction scores increased from 68% → 89%

   • Staff turnover rate decreased from 25% per annum → 8%

   • Productivity (measured in successfully processed shipments per employee) increased by 110%

6. Financial Performance:

   • Revenue grew by 45%

   • Profit margins improved from 8% → 18%

   • Return on Investment (ROI) of 385% in the first year

As we worked together, one Operations Manager said, “the change in our operations is like night and day. What used to be a constant firefight is now a smooth, predictable process. Our team is less stressed and more proud of the work we do."

A customer service rep also said, "the new systems have made my job so much easier and more rewarding. I used to dread calls from clients asking about delays. Now, I'm excited to tell them how far ahead of schedule we are!"

While the primary goals of the transformation were clear from the outset, the unexpected environmental impact was also a nice addition. Swift Clear calculated a 40% reduction in their carbon footprint, aligning them with growing customer demands for sustainable logistics.

The Happily Ever After

Swift Clear's journey from a company grappling with growing pains to a key industry player is a testament to the power of strategic transformation. What began as a crisis of overwhelming volume and inefficiency blossomed into an opportunity for revolutionary change. Through the collaborative efforts of their dedicated team and our expertise, Operation Swift Transformation helped solve immediate challenges and repositioned them for long-term success.

But the story doesn’t end there. The impact of this transformation extends beyond the metrics and operational improvements. Our partnership has evolved into an ongoing collaboration. Quarterly strategy sessions ensure that they continue to refine their operations and stay ahead of industry trends. The Continuous Improvement implemented during the transformation has taken on a life of its own, with employee-led teams regularly proposing and implementing enhancements.

Looking to the future, Swift Clear is well positioned to capitalize on emerging opportunities in the global logistics landscape. With their newfound agility and technological prowess, they're exploring expansion into new markets and services.

Idaya, Swift Clear’s CEO, reflects on the journey: “When we first reached out to Beige Consulting, we were looking for a lifeline. What we got was a launchpad. They helped us discover potential we never knew we had. And today, we’re able to keep up with the industry, and shape its future.”

In the end, Swift Clear’s case study is a narrative of vision, collaboration, and the remarkable outcomes that are possible when expertise meets opportunity. As we continue to partner with forward thinking companies like Swift Clear, we remain committed to our mission: transforming challenges into launchpads for unprecedented success.