CHALLENGE
Our client was a privately-held shoe retailer with over $500mm in revenue. The client had owned and maintained a local fleet in a large Canadian city for many years and was beginning to question the value of investing in an area that was not core to their operations. Management did not know how to properly track and manage the fleet or drivers but still wanted control over the fleet to ensure on time delivery to local stores. Since the client owned fleets in multiple other cities, they were concerned that a poorly implemented divestiture would hamper future efforts along the same path.
ACTIONS AND RESULTS
Wynneford spent several weeks on site with the client evaluating the cost, operation and oversight of the internal fleet. Based on the analysis, a clear rationale for divestiture was identified based not only on significant savings, but also avoidance of liability. Wynneford conducted a competitive outsourcing RFP that brought in existing as well as new vendors. The result of the project was a divestiture of the fleet to a local transportation company which purchased the fleet assets and hired the same driver force. In addition, Wynneford identified several savings opportunities which enhanced the profitability of the transaction for the client.
TAKEAWAY
Fleet divestitures have increased markedly recently, but realizing the value from a divestiture depends heavily upon execution. This client benefitted from Wynneford’s experience in conducting RFPs and our experience structuring transactions.
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.
