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Oil & gas company revs up business with 13% sales growth

October 28, 2024 | No related items found.

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At a Glance

  • Renoir launched a 35-week sales effectiveness improvement program for a Southeast Asian affiliate sales division of a leading global oil and gas company.
  • We began with Renoir’s Focus Process and Implementation to ensure that consistent results were both achieved and maintained.
  • At the end of the project, we implemented various system elements and a structured go-to-market plan for business development.

Key results

24%

increase in imported product

13%

increase in business development activities

Increased sales effectiveness

Installed sustainable Management Systems to deliver real-time information to the Consumer Sales Management

Background

Our Client is one of the world’s largest oil and gas companies founded in the 1920s and now listed on the stock exchange. Its products include diesel, gasoline, lubricants, auto LPG, and speciality chemicals sold to both commercial and retail markets.

Analysis

Following a survey, Renoir launched a 35-week sales effectiveness improvement program for our Client’s sales division of a Southeast Asian affiliate. This division sells diesel and gasoline to the commercial market.

The main focuses of the project were to:

  • Improve sales effectiveness through a comprehensive approach to the planning and reviewing of sales-related activities, with an increased focus on developing business with both new and existing customers.
  • Develop and install accurate planning and reporting tools at all levels to provide greater control, transparency and accountability.
  • Define, develop and install a standard Management Control System (MCS) across the division.

Project Approach

The project began with Renoir’s Focus Process and Implementation to ensure that consistent results were both achieved and maintained. The client’s sales and support staff participated in a learning experience that promoted commitment to and ownership of the solutions being implemented.

A Management Action Team was established to maximize buy-in and impact. This team, led by the Vice President of Consumer Sales along with managers from other departments, facilitated direct engagement with the marketing team throughout the implementation of process improvements. They were also responsible for reporting and reviewing the progress of system development and change implementation.

During the Renoir Focus Process, several system elements were put in place:

  1. A structured plan and review meeting schedule to improve visibility and control, allowing for short interval control.
  2. A Client Ranking Tool to rank Clients based on preset weighted criteria such as volume, margins, and development potential.
  3. Weekly sales plan document focused on plan vs actual of sales volume.
  4. Monthly management report.
  5. Other review and monitoring documents.

Implementation

1. A Management Control System has been installed with a focus on:

  • Plan-Do-Check-Action (PDCA) cycle.
  • daily, weekly, and monthly planning and review meetings to facilitate short-interval control by managers.
  • coaching to maximize their effectiveness.

2. Improved sales planning through the introduction and/or implementation of:

  • weekly sales plan document to guide sales staff in structuring their client contact based on target volumes and setting weekly plans.
  • managerial oversight to review plans, provide direction, set goals, and monitor performance against targets on a daily and weekly basis to allow for corrective action at shorter intervals.

3. Eliminate non-value-added (NVA) activities by:

  • identifying and analyzing NVA activities, and after economic justification, transferring these NVA activities to support departments to free up time for selling activities

4. Focus on business development by implementing:

  • new Key Performance Indicators (KPIs) for all sales staff with specific targets for client prospecting and capture.
  • additional targets for sales staff for new customer acquisition, first sales turnaround, and lost customer recovery.

5. Training and development provided to:

  • the sales team to maximize project value, including systems, time management, negotiation skills, and overall sales techniques.

“The installation of the Management Control System has allowed us to have more visibility and control over all sales functions within the Department and had a positive impact all round…But the most important aspects of the increase in sales effectiveness was the changes proposed were well communicated and developed with the involvement of all the team.”

Results

 

*We have intentionally omitted client-specific details to maintain strict confidentiality.

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