Business Plan for 3PL Services:
For an $8.8B global contract electronics manufacturer, we evaluated logistics capabilities and market potential to expand the company’s business services scope to include third-party, value-added warehousing and distribution. Site visits were conducted to major facilities to evaluate services, operations, pricing, margins, customer relationships, and 3PL relationships. Final deliverables included an operational and systems gap assessment, five-year revenue projection, ROIC/EBIAT impact, competitive landscape, market positioning strategy, organizational structure plan, and implementation roadmap. Executives signed off on the plan and the client hired a leader to pursue this new business.
Industry: Technology – Consumer Electronics Equipment
Operations Due Diligence for Investment:
For a $1B mezzanine investment firm, we provided due diligence support to validate the operational capabilities, growth potential, and risks associated with investment in the acquisition of a $300M European value-added warehousing and distribution business serving the high-tech consumer electronics industry. Market intelligence included an industry overview, key trends, market size and growth potential estimates, margin expectations per segment, and risk factors. Support included business plan reviews with the executive management team and site visits, as well as the evaluation of operational performance, process quality, and customer service delivery. Technology capabilities, key customer relationships and contracts were also included in the assessment. The group agreed to commit in excess of $100M to fund the acquisition.
Industry: Financial & Private Equity
3PL Business Strategy:
For a $2B household moving and storage business, we assessed corporate logistics capabilities and market potential to expand third-party logistics services. We provided research to identify key market segments and their growth potential and profitability. Centralized support services and several key agency operations were evaluated to determine operational and systems capabilities, assess key customer relationships, evaluate sales promotion programs, and identify organizational obstacles, including competing interests, compensation programs, and service requirements. The initial business case was accepted, and a detailed plan was initiated.
Industry: Logistics 3PL/LSP
Business Development Strategy:
For a $1B India-based information technology services company that wanted to penetrate the 3PL market, we provided a 3PL market segmentation, trends driving growth, IT competitor analysis, and a market positioning strategy to support business development in the 3PL vertical. Research included a competitor analysis of services portfolios, key client relationships, 3PL-generated revenue estimates, and strengths within vertical segments. We estimated revenue potential and identified a list of 40 targets for business development. The client is experiencing strong growth in this segment that should be reflected in annual results.
Industry: Technology Services
3PL Start-up Business Plan:
For a $900M health and fitness publisher and products distributor, we developed the business case to establish a 3PL business based on market demand and distribution capabilities. Market analysis was conducted to determine the size, segmentation, margins and growth trends in the 3PL vertical. We evaluated client distribution operations, staff and systems capabilities, capacities and cost structure. We defined the 3PL service offering and SKU profiles to leverage existing capabilities and benchmarked industry pricing creating a pricing model. We defined the competitive landscape and positioning strategy. A sales and promotion strategy was recommended alongside an initial list of 635 potential customers to pursue. We aided in the drafting of the business case to gain executive approval. The business case was approved, and the client brought their first 3PL client online in the next quarter.
Industry: Printing & Publishing
3PL Acquisition Search:
For a $300M private equity fund, we provided a 3PL market overview and guidance to define a candidate profile, and conducted a search to identify third-party logistics companies for acquisition. With fairly narrow criteria, the initial search produced 36 potential investment targets. We provided detailed business profiles on the targets, contacted them on behalf of the client, and made introductions. The client is pursuing these leads toward acquisition.
Industry: Financial & Private Equity
Global Logistics Services Expansion Plan:
For a $30M third-party logistics (3PL) company with warehousing and blanket-wrap trucking services, we provided advisory services to the president to address a series of business development questions regarding international logistics services expansion, such as entering bonded warehousing, operating in an FTZ, offering freight forwarding services, and becoming an NVOCC. The client followed our recommendation to pursue freight forwarding and is currently offering the service.
Industry: Logistics 3PL/LSP
Business Plan & Start-up Implementation Strategy:
We worked with three national printers with a combined revenue of $700M to develop a detailed business plan to create a jointly-held third-party mail consolidation service. The effort focused on business infrastructure and cost estimation, including facility location and detailed design for processing equipment and material handling, as well as warehouse and transportation management systems selection and conference room pilot, and technology architecture. Detailed revenue projections, cost estimates, facility layouts, and systems and hardware specifications were presented to the combined executive management team. The partners proceeded with contractual agreements to form the new entity with the intent to launch the business.
Industry: Printing / 3PL Services
Supply Chain Network Design for Market Entry:
For a $2.4B global food producer to the food service and grocery industries, we developed the initial logistics design to support business plan development for entering a specialty baked goods category in the United States. Our analysis addressed the location of new production plants and distribution network configuration options to supply product to key customers, taking into consideration transportation options, handling requirements, existing 3PLs, customer demographics, volume expectations, facilities costs, and margin requirements. The effort to implement this plan is currently in progress.
Industry: Food & Grocery – Food Production
Business Plan Evaluation for Fleet Operations:
A $300M manufacturer and commodity trader of feed, fertilizer, and sulfur acquired a trucking fleet as part of an acquisition. The fleet hauled molten sulfur to supply parent company sulfur processing operations and also for outside customers as a common carrier. With $4.3M in annual revenue and losing money, the parent company wanted to evaluate fleet operations and make a strategic decision to maintain it or sell. We conducted an analysis of fleet operations, financial performance, expansion proposals and the business plan. Our investigation revealed numerous areas of weakness in operations management and the business plan, which were summarized in a report with the following sections:
- Competitive Landscape & Positioning Strategy
- Fleet Dependability & Safety
- Fleet Utilization & Rate Competitiveness
- Financial Results
- Justification of Expansion Proposals
- Recommendations to Bridge Gaps in the Business Plan
The client tasked the divisional president responsible for the fleet with business plan revisions. The decision to maintain or sell the fleet is pending recommended revisions to the business plan.
Industries: Poultry and Dairy Feed, Fertilizer, Sulfur Processing