Logistics Services
The owner of a profitable business felt anxious because he suspected he was losing money, but after more than 2 years of effort he still lacked clarity regarding the loss drivers. $35M revenue & $2.9M profit
profit growth within six months
The Findings
Many service costs were hidden in overhead, so the pricing structure did not account for the true cost.
Sales team incentives led to unprofitable sales.
Cost misallocated to new divisions were subsidizing a legacy division and masking losses.
Actions Taken
Service pricing was redesigned to capture true costs
Sales team compensation realigned to incentivize the highest profit offerings.
Closed unprofitable legacy division.
“Once we saw this perspective on our numbers, the solution was clear. Easy decision!”
Guide the Process and Solve Problems
A weekly, executive-level decision mechanism to guide the process and solve problems as they arise.
