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Logistics
Refocusing a regional logistics group on its most profitable routes
Result
operating margin within twelve months
Service
Strategy & Planning
Duration
16 weeks
A family-owned logistics group was growing revenue but losing money on a third of its routes.
The challenge
Revenue had grown for five straight years, yet margins were shrinking and nobody could say which customers or routes were driving the decline.
Our approach
We rebuilt profitability by route and customer, ran workshops with every regional manager, and agreed a short list of routes to grow, reprice or exit.
The result
Within a year the group exited eleven routes, renegotiated its three largest contracts and lifted operating margin by 38 percent.
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