CHALLENGE
Our client, a private equity owned portfolio company, had just purchased two competitors that more than doubled revenues and expanded their production footprint across the US, Mexico and Canada. Management needed to decide whether to staff up a transportation function internally, outsource transportation management or have a combination of the two. In addition, management had aggressive cost reduction targets to meet in a short timeframe.
ACTIONS AND RESULTS
Wynneford Advisors conducted a three-phase engagement with the client.
In Phase 1, Wynneford gathered internal company data, conducted on-site interviews, engaged in strategic discussions with top management and gathered data directly from the client’s freight vendors. Wynneford mapped out the costs and benefits of each path, providing quantitative support for each. The client ultimately decided to pursue a primarily managed services model.
In Phase 2, Wynneford conducted an RFP process to select a managed services provider. Given the technical nature of developing a managed services program, the client relied heavily upon Wynneford to develop the selection criteria, provide insight on proposals and ultimately to take the lead in negotiating the contract with the selected provider. Additionally, due to Wynneford’s prior work in developing the client’s freight data set, Wynneford was able to develop a baseline for measuring savings rather than having the managed services provider develop it.
In Phase 3, Wynneford was engaged to monitor and assist in the successful implementation. Activities included weekly calls, on-site meetings and inspections and further data analysis for future initiatives.
TAKEAWAY
Our client leveraged Wynneford’s logistics expertise during a time when management resources were strained. Through Wynneford, the client was able to rapidly and confidently execute a managed services strategy and save a significant amount of money compared to their alternative strategy of building an internal logistics team on a short timeframe. Ultimately, Wynneford assisted in selecting the vendor and negotiating the contract with the vendor.
Wynneford Advisors helps you analyze your freight spend, create strategies to enhance performance and service, and then manage the implementation. We offer solutions for mergers and acquisitions, logistics streamlining, internal fleet optimization, and detailed freight analysis.
Work with a responsive and engaged transportation consultant team.