Tightening economic conditions, together with changing legislation, increased competition and Just-In-Time service requirements are resulting in many carriers experiencing financial challenges. Transportation carriers have expanded their services and developed a wide range of specialization to maintain competitiveness. Unfortunately, not all of these strategies have generated the necessary revenue to offset costs.
What does a shipper really want? How can carriers reduce their operating costs? What is the competition doing? These are questions carriers will have to repeatedly ask themselves. Focus can assist transportation companies in reducing costs and identifying new business opportunities and negotiating with secured and secondary lien holders. Our logistics consulting professionals have experience in the following areas:
Cost Control & Fleet Utilization
- As labor, insurance, equipment and maintenance costs continue their upward trend, the requirement for cost control and equipment utilization is at an all-time new high level.
- Focus helps control costs through better procedures, new systems, better routing and scheduling, and implementation of appropriate procedures and systems.
System Review and Implementation
- Like other industries, the transportation industry must have state-of-the-art systems to maintain and control their operations. Electronic data interchange, and GPS tracking are already standard for many carrier operations.
- Focus can help by researching, identifying and implementing the appropriate hardware and software for any operating environment.
- The rules governing the transportation industry have changed over the years and will likely continue to change. While the majority of them are for the better, failure to comply can be expensive.
- Focus can review current policies, procedures and practices and ensure your operation is in current regulatory compliance.
- Setting rates and customer cost structures can be a difficult process. Deficit lanes, low backhaul volume, competition and operating boundaries have a major effect on profitability.
- Focus can help in reviewing your lane and customer rate structures, traffic balance and profitability and make recommendations for improvement.
- From a shipper’s standpoint, the carrier is an extension of their Customer Service Department. In many cases shippers will pay a premium to ensure timely and quality delivery. They expect to pay for other value added services provided by a third party.
- Focus Management Group can help in identifying needs and trends in the shipper community.
- The ability for many carriers to see the big picture and think long term has helped them survive. Terminal facility analysis, break bulk center locations, new geographic territories and specialized hauling are strategic issues which affect the long term viability of all carriers.
- Focus can help through directional tonnage surveys, location analysis, and developing future business plans.
Overall Business Management
- Management and operating structures, which truly support the business plan, are the key to profitable carrier operations.
- Focus Management Group can help in reviewing management structure, operating structure, policies and strategic goals.