Yodel was created by the merger of Home Delivery Network & DHL’s UK Domestic business in response to the growing need for parcel and final mile delivery services. In terms of scale, Yodel is second only to the Royal Mail and at the time had 11,000 Colleagues working across 130 sites, challenged by a cost competitive market.
Challenge
- Whilst the company had been brought under a single brand umbrella – YODEL, there was an urgent requirement to integrate the businesses to bring down the unit cost of delivery in what at the time was a cut throat competitive marketplace.
- Specifically there was a need to radically alter the cost to serve and operating models, to be fit for purpose and enable a significant EBITDA shift, whilst achieving the SLA’s agreed with over 3,000 clients.
Solution
- It was decided to fundamentally alter the operating model from an employed basis to a mix of employed and self employed couriers. This process impacted all 11,000 Colleagues and sites.
- The process was supported with site & management restructures, with associated changes in operational process and IT capability & systems.
Outcome
- Yodel survived one of the most difficult periods in the UK small packages market - City Link for example, did not.
- Not only did it do this, but OPEX was reduced by more than 35% whilst customer satisfaction metrics improved by 30% marking a significant change in how Yodel was being viewed by customers.
“Without a doubt the most capable change agent I have worked with” Keith Basnett, Group COO, Yodel
