Next-Gen Offshore Outsourcing Provider
Glass‑box
Outsourcing
Outsourcing
Glass‑box
Outsourcing
Outsourcing
Seasonal Surge Chaos, PODs, and Claims:
logistics operational challenges
Client:
Logistics company;
Auckland, New Zealand
Auckland, New Zealand
Service:
21 agents (10 Front/11 Back Office) + 40% elastic buffer at 50% cost
Results:
Response time ↓60%
CSAT 4.7 | Accuracy 99.4%
POD cycle ↓50%
Zero downtime
CSAT 4.7 | Accuracy 99.4%
POD cycle ↓50%
Zero downtime
As an outsourcing provider entering the client's complex logistics environment, we needed to address several inherent industry challenges
The business challenges
In February, the client faced an unexpected 60% surge in traffic just two weeks into our engagement. Typically, surges in the New Zealand logistics industry during these periods are about 30%. Easter brought an even higher spike at 200%, while industry norms are usually 50-70%. In logistics, every delivery must be made during peaks, but quickly scaling capacity or keeping it year-round is not practical. The challenge is to avoid overload without exceeding the budget.
Proof of Delivery is more than paperwork. It protects the business legally and ensures payments are made. The Client's agents frequently encountered unclear scans, blurry photos, and difficult-to-read signatures. New contractors made more mistakes and took longer to process PODs. Every mistake increased the risk of disputes, payment delays, and legal trouble.
Agents had to use port systems, carrier platforms, and warehouse management tools—more than ten systems at once. For new staff, this led to increased mistakes, caused stress, and resulted in higher turnover and prolonged training. These challenges slowed operations and made it harder to retain staff.
New Zealand customers want communication that is direct, friendly, efficient, and personal. Previous offshore projects had mixed results. The client recognized that poor cultural alignment could impact customer loyalty and satisfaction scores.
General client's outsourcing concerns
Flexibility issues. Contract renegotiations for any system change
High turnover. Constant retraining cycles to replace departed staff
Coverage stability problems. Service level drops due to illnesses/absences
Targeted solutions to meet challenges
The client expected high-quality service and openly communicated their unique challenges and concerns from prior outsourcing experiences.
Elastic Buffer Model
We started with a 20% free staff buffer in the first month, which was crucial during February's 60% surge. Seeing its effectiveness, the client increased the buffer to 35-40% at half the cost.
- During regular periods, buffer staff honed skills through practice shifts at no charge and deployed instantly during surges.
- Peak periods: Instant deployment without training delays
- Easter's 200% surge was handled seamlessly with shift optimization and the buffer.
- In down periods, agents received coaching to improve KPIs.
POD Processing
We chose to address the client's error problem from the start by using targeted recruitment and pre-training for this task:
- Custom vetting: Visual attention tests, pattern recognition assessments, accuracy evaluations
- 6-hour pre-training program: Created with the client's materials, covering common POD errors, illegible document handling, and accuracy techniques
- Practice simulators: Hands-on training with real problematic POD samples before main training
Multi-Platform Workflow
- Targeted vetting: Candidates with experience working simultaneously on multiple platforms
- Workspace optimization: Additional monitors for all order processing agents
- Strategic seating: Positioned near the Team Lead for instant support
- Task-specific pre-training: We asked the client for the most common mistakes new staff made, then created materials and taught these lessons in an 8-hour course with tests and examples.
Cultural Alignment
We eliminated cultural friction through proactive preparation:
- Mandatory cultural training: All front-office agents completed the NZ communication style course
- Content development: Mix of researched materials and client-provided insights
- Focus areas: Kiwi business etiquette, communication preferences, service expectations
Standards
Our standard operating procedures fully addressed the client's concerns. Flexibility is central to our model. When PBT required significant back-office and script changes in April, we reorganized processes within 48 hours—without contract updates. This approach defines our operating model.
- Low turnover is typical for us, with less than 3% attrition (only two replacements among 31 FTEs over 6 months), which enables us to meet our retention benchmarks.
- Coverage continuity comes built in: Buffer staff cover all absences or rotations, ensuring uninterrupted service as part of our standard model.
Speed to Excellence:
Time-to-value milestones
Training
Actions:
All 4 streams (covering 4 different tasks) completed training on time with full staffing
Days 1-14
Actions:
Agents outperformed other contractors' historical onboarding metrics - Front Office by 25%, Back Office by 60%. Team reached 80-85% of target KPIs
Days 8-30
Actions:
Managed 60% traffic surge through buffer mobilization and shift reinforcement. Availability maintained at 90% of normal, quality metrics held steady under load
Month 3
Actions:
200% peak surge handled with minimal impact, no degradation of key metrics.
Back Office changes implemented within 48 hours without disruptions
Back Office changes implemented within 48 hours without disruptions
Month 2
Actions:
During a 25% traffic dip below normal, underutilized staff sent to intensive coaching. Quality metrics reached targets. Additional buffer deployed (expanded to 40%).
Before → After Comparison
Let’s see the results
Metrics
Ex-Outsourcing
contractor
contractor
Marke.tel
(Month 3)
(Month 3)
Marke.tel
(peak surge)
(peak surge)
First Response Time
Live Chat Pickup (in 60s)
Order Entry Accuracy
Rework Rate
POD/Claims Cycle Time
POD Processing Accuracy
Coverage Gaps
2-3 hours
1 hr 36 min
2 hr 19 min
73-85%
93 %
81%
0-1%
1-3%
24-36 hours
30-40 hours
36-48 hours
5-7/month
~97.0%
~96-97%
99.4%
98.5%
98.9%
98.2%
Zero incidents
0-2 incidents/month
2-4%
Client got enterprise-grade front-office metrics from a 7-agent team at SMB prices, with zero operational headaches.
Service Resilience
- Quality metrics (CSAT, accuracy) were maintained during all surges
- Service metrics (availability, response time) degraded <10% during peaks
- 48-hour system change adaptation without service impact
- The buffer model proved effective at all load levels
Continuous Improvement
- Target KPIs achieved by Month 2 (industry standard: 3-4 months)
- Downtime periods converted to training opportunities.
- Month-over-month improvement in all quality metrics
- Zero regression during high-stress periods
Why This Model Works for SMB Logistics
- Seasonal volatilityWhether you're handling 100 or 10,000 shipments daily, seasonal spikes affect you in the same way.
- Processing pain scales downA small forwarder with 50 PODs daily faces the same illegible scans and accuracy demands.
- Multi-system realityYour TMS, accounting, and customer portal create a similar cognitive load, which can attract staff turnover and increase error risks.
- Cultural alignment mattersSmaller logistics companies can't absorb poor customer interactions as enterprises can.
- Standard excellenceConcerns about flexibility, turnover, and coverage aren't unique; they're industry standard.