Consulting for transportation businesses
Transportation Business Consultant for Carriers and Logistics Operators
Revenue per load is easy to see. Profit per load, per lane and per customer is where the business is actually decided.
The situation
What we usually find in transportation and logistics companies
Transportation operators usually have plenty of data and very little of it organized in a way that supports decisions. Rate, cost, deadhead, detention and payment timing all sit in different systems.
Customer concentration is the other structural risk. One shipper at 40% of revenue sets your pricing, your capacity and your cash cycle whether you agreed to that or not.
Load and lane profitability
All-in cost per mile against revenue per mile, including deadhead and empty repositioning, by lane and by customer.
Customer concentration
Knowing exactly what percentage of revenue and profit each customer represents changes how you negotiate and where you prospect.
Driver and carrier cost
Pay structure, turnover, recruiting cost and owner-operator settlements move cost per mile more than fuel does over a year.
Insurance and fixed cost
Insurance, equipment payments and maintenance reserve form a fixed base that requires a minimum utilization to cover. That break-even should be a known number.
Receivables and factoring
Payment timing, detention billing and factoring fees are a real cost of doing business with slow-paying shippers.
Capacity and dispatch
Empty miles and idle equipment are the most expensive things in the operation.
Where this leads
Related services
If the issue is pricing and margin, see the profitability review. If it's scheduling, delegation and daily flow, see operations consulting. If the same mistakes keep repeating, start with process improvement.
Other industries
Every Business Has Something That Needs Tightening.
Let's find what's slowing yours down and figure out what to fix first.
$500 flat fee. No long-term commitment required.