Case study · Logistics
Logistics provider cuts transactional SG&A 24% by standardizing processes across locations
Sixty years of growth through acquisitions had left a long-time USC client with unstandardized transactional processes and no consistent way to track performance. USC helped design and install a management operating system across its locations.
Results
24%
reduction in transactional SG&A cost
35%
reduction in labor cost per revenue dollar
45%
reduction in fleet maintenance cost
Dispatch, licensing, payables and receivables costs fell 20%+.
The situation
Sixty years of growth, partly through acquisitions, had left the provider with inefficient transactional processes, missed economies of scale and no consistent way to track operational and financial performance across its business verticals.
What the assessment found
- Transactional processes never standardized across acquired locations
- Multiple information systems and no common reporting
- Processes not built to scale
How the work was done
Processes: standardize the transactions
Standardized booking, dispatch, tracking, loading, delivery, payables, receivables and general ledger processes across locations, with standard transaction times.
24%
reduction in transactional SG&A cost
Monitoring: count the exceptions
Added process monitoring, quantified unscheduled events and set up performance review loops.
35%
reduction in labor cost per revenue dollar
Reporting: one platform
Built a common reporting platform with standard key performance indicators so each business vertical could be compared with the others.
Lasting impact
Lower transactional cost and faster processing continued, and the standardized, scalable infrastructure supported a major acquisition that grew the business by 40%.
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