description != null):?> keywords != null):?> Petrochemicals Company | Highland Group Live (new)

Petrochemicals Company

NEEDS-BASED RESULTS

 

Petrochemicals Company

SITUATION

A global petrochemical organization needed to increase revenues through realigned major non fuel income (NFI) components generated through its retail network.

DRIVER GOAL

  • Develop an implementation framework to improve NFI by $10 million within twelve months.

RESULT

  • Achieved $1 million in “quick win” savings and enabled $11 – $24 million in additional benefits.
case study image, CS-339 large

Case Study

Optimize Revenue for a South African Petrochemical Company

Issue

Executive management of the regional operation of a global petrochemical organization based in South Africa identified an opportunity to increase revenues through realigned major non fuel income (NFI) components generated through its retail network of petrol stations. The challenge was to identify opportunities to improve dealer contract-related processes and develop the framework needed to support a revised retail NFI strategy.

Highland Approach

The Highland Group team conducted a market analysis and benchmarked competitor pricing strategies. The team developed and tested pricing strategy hypotheses and ultimately identified $11 – $24 million in benefit potential from increased revenue. Development of an interactive pricing model allowed dynamic, real-time testing of multiple variable hypotheses. A Quick Wins work stream was used to kick start training and change management while capturing some immediate savings. Interactive client sessions produced current state brown papers and visual maps of future state streamlined processes that could more effectively support the revised revenue strategy.

Actions Taken

The Highland Group partnered with client teams to develop a framework for implementation, including rollout plans, timelines and implementation tools.

  • The joint team delivered pricing strategy recommendations that were well within the market rate and had an estimated benefit potential of U.S. $11 - $24 million over a five-year implementation period.
  • The team also delivered revised and streamlined process guidelines as well as implementation training tools, which were approved and well received by the departmental team.
  • A tailor-made and clearly packaged implementation framework was presented to line management.

Achieved “quick win” savings of

$1m

and enabled $11-$24 million in additional benefits

The Highland Group introduced a focused and structured approach to solving this challenge and developed a framework we can implement. The quick wins are proof that we will realize the benefits.

CEO, South African Operations

Related Information

industry-based

Presenting Analyst

John is a Senior Executive and Presenting Analyst at The Highland Group with more than 30 years of leadership experience in management consulting. He has led hundreds of global consulting engagements that delivered an array of operational improvement solutions with total client benefits exceeding $1 billion dollars.

Head of Organizational Development

Don is an internationally recognized organizational change and development expert with 33 years of global experience in partnering with results-oriented clients to achieve sustainable behavioral change and targeted bottom-line results in productivity, quality and profitability. He is recognized for fostering high levels of enterprise-wide sustainable performance improvement ownership. Don’s key strengths include his ability to engage stakeholders at all levels, create collaborative environments and work within the culture to achieve leadership, management and employee breakthrough results.

Project Leader

Oil & Gas

North America

Tom is a senior project leader with over 25 years of international management consulting experience in the oil and gas, utilities, manufacturing, financial services, telecommunications, media and aerospace industries. He has served Fortune 500 and Global 2000 companies in 15 countries across North America, EMEA and Asia.