Operational Improvement of Provider of Contract Transportation Services
When Inglewood Associates was engaged to improve the business of this transportation service provider, the company was being led by ineffective management, was experiencing serious cash flow problems, and had no operating structure, controls or performance measurements in place.
Inglewood diagnosed the initial step to improvement as replacing the operations manager, and assisted in hiring the optimal person at a compensation package within the company's financial constraints. Inglewood collaborated with the new manager to define the key profit-driving functions of the business, and developed the requirements of a supporting team to manage the functions. Leaders were chosen from the most promising of existing employees, but outside talent was also brought in to lead the dispatcher function.
Inglewood then strategized with the new management team to identify the company's relevant performance and profit metrics and designed a protocol to monitor, quickly identify and rapidly resolve operations and financial problems as they appeared. Tools included more effective operating and reporting controls; concise, targeted flash reports and visual exception reports; and a combination of purchased standard software and in-house program development. Primary targets included maintenance and repair spending; collection efforts; effective incentive pay; pilferage reduction; location and facility optimization; driver/fleet ratio maximization.
Within six months, the Company had raised on-time performance from 70% to over 95% on a consistent basis, increased cash flow sufficiently to fund necessary fleet upgrades and working capital needs, and defined its core competencies to set the stage for business expansion.