UPS’s stable and relatively dominant position in the domestic parcel business led to a search for new growth market segments and regions.
BSI evaluated international growth strategies, including freight forwarding truckload, and less-then-truckload carrier segments, and whether or not to enter new LTL markets in Europe.
We researched the markets and conducted operational and financial analysis, interviews, and on-site visits. This resulted in a market size and breakdown, a competitive analysis of existing players and potential entrants, an opportunity assessment, a profitability analysis, and an operational due diligence and fit analysis within selected niches.
As a result of the work UPS made several large acquisitions and several joint ventures and strategic alliances that extended the integration of the global service offering.
This $3.5 billion company was growing faster than its operations could handle, so it hired BSI to deploy technology and standardize work methods & standards, storage & shuttle configurations, and organization and compensation structures. The multi-year engagement included the following work streams:
Work Methods & Standards – industrially-engineered work standards, inside and outside workflows, procedures for monitoring productivity, and a detailed driver methods manual.
Storage and Shuttle Configuration – mapped business density, determined the ideal location to store product and start drivers and what type of shuttle/relay to operate to get the goods there, and designed manifests and schedules for daily and nightly operations.
Routing Optimization and System Implementation. We documented how to prepare high-quality data, how to best configure routing parameters, standardize daily routing procedures, baseline, and set targets. We also prepared templates for managing drivers, vehicles, and zones, a self-correcting feedback loop, etc. Implemented a sophisticated routing and scheduling software.
Organization/HR/Comp. – divisional, local, and project organization structures and job descriptions, communications program, metrics, targets, and a driver evaluation process.
Vehicles – benchmarks, a fleet modernization program, new vehicle type, and new vehicle introduction process.
Supported a major effort at process and systems improvement from the ground up.
ARAMEX: Advised on optimizing fleet management, the distribution network, and routing/scheduling of vehicles.
Monoprix(non-U.S.): Implemented a redesigned store logistics process, improving cash-flow and decreasing stock-outs and markdowns for a French retail chain. Conducted a series of detailed pilot programs.
CSX/Sea-Land: Developed valuation models and scenarios during due-diligence for a ground-breaking multimodal merger.
TRANEX:Conducted a search for international partners
Conrail Logistics. Developed a business strategy and plan.
Port of New Orleans, Jacksonville, andNew York/New Jersey
Coca-Cola, Canadian Pacific Forest Products, and others: Analyzed transportation rates and identified savings opportunities for chemicals, forest products, and food products shippers. Prepared workshops on negotiating with suppliers.
Kowloon Canton Railway Corporation(non-U.S.): Evaluated the financial viability of five multi-billion dollar capital projects for a Chinese freight logistics and passenger rail and ferry company, resulting in the decision to build a container train service, a harbor tunnel, and a high-volume strategically important switching yard.