A long-time USC Consulting Group client, a leading transportation and logistics services provider needed help to design and implement a Management Operating System to improve the efficiencies of their transactional processes.
This major international logistics firm had realized 60 years of growth, in part through multiple acquisitions, resulted in lack of standardization in transactional processes leading to inefficiencies and an inability to track performance.
Consequently, opportunities for economies of scale were not realized as well as a further challenge to position the transactional processes for ease of scalability. Because there were multiple information systems employed across the enterprise driven by acquisitions, it was difficult to have a clear, consistent reporting vehicle to track operational and financial performance.
USCCG, working with the client team, focused on the transactional processes as it pertains to booking, dispatch, tracking/customer notification, loading, delivery, AR-AP, and General Ledger.
USCCG was able to facilitate in the design and implementation of a Management Operating System through the standardization of processes across multiple locations, setting standard transactional times, process monitoring and quantification of “unscheduled events”, discrete performance review communication loops, and operational and financial reporting. A common reporting platform with standardized reports with Key Performance Indicators also helped to drive to a common and agreed upon reporting of performance allowing the client to compare each business vertical to others.
24%
transactional SG&A cost reduction
45%
fleet maintenance cost reduction
20%-25%
transactional cost reduction (dispatch, licensing, AR-AP)
35%
labor cost per revenue reduction
The client was able to realize a significant improvement in transactional cost and velocity of work processed, and continues to perpetuate. Because of the standardization of processes and reporting platforms, the client has been able to build a scalable infrastructure which facilitated in a major acquisition growing the business by 40%.
