Petrochemicals 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.