Overcoming Complexity:
Hillebrand's Strategic Growth Through Innovative Logistics Solutions with its customer Grupo Peñaflor
Hillebrand Gori utilized the Triple Fit Canvas to assess its strengths and develop a tailored logistics solution with its customer Grupo Peñaflor. They proposed moving wines to their warehouse in Chile by truck, which allowed for quicker access to ports and reduced overall lead times. Hillebrand experienced growth through the implementation of these innovative logistics solutions that not only improved operational efficiency but also created additional revenue streams, creating a win-win for both companies in the long run.
The Situation
The situation for Hillebrand, specifically in relation to their customer Grupo Peñaflor, involved navigating significant logistics challenges exacerbated by the COVID-19 pandemic. Grupo Peñaflor, one of the largest wine producers in Argentina, experienced a surge in orders, particularly from key markets like the US, UK, and Netherlands, which grew by 30-40% in the first six months of the pandemic.
The Challenge
The spike in orders required Hillebrand to respond quickly to ensure timely delivery of wines for its customer Grupo Peñaflor. They encountered issues such as a shortage of empty shipping containers, restrictive port working hours, service cancellations, and delays at transshipment ports. Additionally, seasonal weather conditions, like snowstorms, affected transport routes. These challenges necessitated a strategic response to ensure timely delivery and manage increased demand effectively.
Josefina Godoy Lemos at the Value Creation Summit 2023
The Benefits
The financial impact of Hillebrand's strategic response, utilizing the Triple Fit Canvas, included an additional revenue of USD 7.8 million realized on time and significant cost savings for the customer. Specifically, they achieved a 27% reduction in FOB (Free on Board) costs. Over a four-month period, the total logistics savings amounted to approximately USD 80,000. This outcome not only improved their operational efficiency but also enhanced their service offerings to Grupo Peñaflor during a challenging period. The environmental impact included reduction of 144 tons in CO2 emissions.
The Solution
The Triple Fit Canvas helped Hillebrand by providing a structured framework to assess the strengths and develop a tailored logistics solution together with Grupo Peñaflor. It facilitated the identification of key areas for improvement and strategic alignment, enabling Hillebrand to propose moving wines to their warehouse in Chile by truck. This approach allowed for quicker access to ports, significantly reduced total lead time by at least six days, and resulted in substantial cost savings.
Millions of additional Revenue
cost savings for Grupo Peñaflor