SHIPMATE LOGISTICS

Experts at turning your ship around

$185 Million Regional LTL Carrier

Challenge:      Phase One... Commissionedto evaluate and determine the root causes for declining profit results over an extended multi-year period.

                        Phase Two... Build a profit improvement and efficiency plan that will turn around the operating results of a failing $185 million LTL

                                             regional carrier.  Financial  results showed a negative net profit for at least 54 consecutive months.

                        Rescue plan included:

                                                              *   Facility restructuring within the existing footprint.

                                                              *   Innovative new business model enhancements.

                                                              *   Creation of new revenue streams within the present framework to increase sales growth.

                                                              *   Decrease excess equipment and resource capacity.

                                                              *   Design a metric evaluation system to accurately measure operating performance (P&D, Dock Linehaul).

                                                              *   Complete restructuring of the local peddle route system to eliminate unnecessary and non-productive P&D miles.

                                                              *   Design a sales evaluation system to measure sales rep performance, new business growth, shipment density and

                                                                   peddle route and linehaul balance.

                                                              *   Integrating new revenue opportunities into the operation while at the same time eliminating at least one of the internal

                                                                   purchase transportation cost variables  (IE: pick-up, delivery, linehaul & dock expenses).

                                                              *   Strategy to solicit Expedited shipments that commingle with the existing P&D and Linehaul operation.

                                                              *   Strategy to solicit and incorporate Volume LTL shipments (10,000lbs  - 20,000 lbs) into the normal operation to

                                                                   reduce excess equipment capacity.

                                                              *   Improvement program to reduce Cargo Claims.

                                                              *   Awareness Safety program to decrease vehicle accidents and work related injuries.

                                                              *   Ideas on how to successfully acquire accessorial revenues.

                                                              *   Ideas on how to improve the outstanding receivables due to the carrier.

                                                              *   How to implement a legitimate Weights & Inspection program that delivers increased revenue results.

                                                              *   Operating procedure changes that increase efficiency and eliminate the issue of throwing labor at problems and new

                                                                   work assignments.

                                                              *   Strategy on how to utilize alternative and less expensive equipment and labor assets to lower variable cost without

                                                                   sacrificing service to the customer.

                                                              *   How to implement a "Kaizen" management style to break down the P&L and generate long term, sustainable results

                                                                   followed by support and buy-in from employees.

Time Period:  Positive net income gains in three - six months.

                       Ongoing improvement process

Results:               

                  *  Plan was just submitted but initial reaction from executive management is very positive.

                   *  If the strategies are executed properly by senior management, local management and front line employees, the result will be a continuous

                       improvement process that will turn around the perpetual 54 month profit drought into a positive net income gain in three to six months.

                   *  If the Kaizen business strategy is implemented, the positive net income gains, sub-100 operating ratios and overall profit improvement will be

                       long term and sustainable.        

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