An ambitious cost transformation and modernization program

The Challenge

For several years, a global logistics company has experienced year over year declines in operating margins, due to changing volumes mix and competitive cost pressure.

Senior management set the objective to return to previous profit levels.  With that in mind, management emphasized a highly variable cost structure with no other pre-conditions. 

Our Breakthrough

The first step for our joint team was to conduct a thorough analysis of the network, operation, enabling technology, and cost structure. We utilized our proprietary third-party logistics evaluation framework and leveraged our industry expertise to develop a comprehensive plan.

In the course of the effort, transparency, clarity, and a foundational fact base were paramount. This, coupled with our analysis and recommendations, powered multi-year business cases and investment cases.

In the end, the team executed a three-year transformation program to achieve the program goals. While the transformation encompassed technology and non-tech solutions, the technology lift was substantial; requiring changes to an entire suite of apps, bots, and platforms. Though the execution phase, tens of thousands of employees were engaged in operational and technology improvements. 

Our Impact

Our program, as executed, resulted in $1+BN run rate improvement in operating margin.