Project Description:
Elgas is a leading supplier of LPG for cooking, heating, and hot water supply in New Zealand. They also provide Swap’n’Go cylinders to households and businesses across the country. In January 2022, a service audit review revealed that Elgas was not meeting the desired service levels and contractual obligations. To address this issue, Programmed proposed the implementation of a National Account Management Plan to improve service deliverables, reduce delays, enhance health and safety (H&S) measures, and improve communication.
Project Solution:
Programmed initiated a series of discovery meetings across the country to identify the gaps in the agreed service levels. The key areas for improvement included site visits, meetings, contract governance, administration tasks, and processing. Programmed allocated dedicated Elgas Account Managers nationwide and established monthly country-wide meetings, as well as fortnightly regional meetings where additional work was required. These meetings aimed to report on the progress made and address any issues raised.
To overcome labor market challenges post-COVID, Programmed collaborated with Elgas to launch a marketing campaign offering bonuses for new drivers. They also reviewed and recommended improved pay rates to align with the market standards, which Elgas accepted and implemented nationwide. Furthermore, Programmed introduced a specific two weeks’ notice clause for Elgas, Programmed, and on-site employees, addressing the concerns of transitioned temporary employees and ensuring peace of mind.
Outcome:
The implementation of the National Account Management Plan and the collaborative efforts between Elgas and Programmed resulted in several significant outcomes. These include:
- Reduction in time to fill orders by 50% compared to pre-2022 orders.
- Zero H&S lost time incidents reported since January 2022.
- Significant reduction in payroll and leave processing errors.
- Increased communication with on-site employees through regular toolbox talks and H&S meetings.
- Stronger relationship, trust, and rapport between Programmed and Elgas teams.
- Improved service levels and compliance with contractual obligations.
- Implementation of recommended market pay rates across New Zealand.
Key differences noticed post-completion include Elgas’ confidence in Programmed’s ability to manage on-site employees, reduced risk of injuries, and consistent service levels meeting contractual requirements. Elgas now considers Programmed a market leader and often accepts their recommendations.
