Logistics Outsourcing Case Study

 

Business Challenge

In 2008, a leading baby products manufacturer based in Austria engaged A&A to help it convert from a distributor to a 3PL model for its domestic U.S. product distribution.

 

Our Solution

A&A performed an internal analysis of the client’s logistics and manufacturing operations. Working with the client it was determined that both import/export freight forwarding and U.S. value-added warehousing and distribution operation requirements should be put out for bid in order to leverage the full spend of the company in finding a lead logistics provider (LLP). A&A developed a comprehensive request for proposal (RFP) and leveraged its 3PL market research and knowledge base in facilitating the final 3PL selection. Warehousing and transportation key performance indicators (KPIs), IT requirements, network optimization skills, international and domestic transportation management capabilities, specific retail industry requirements, warehousing expertise, proposed pricing and contract terms, and cultural fit criteria were all evaluated in selecting the final LLP.

 

Business Value

The complete process from issuing the RFP to operations start-up was completed in four months and total annual savings of over 20% were achieved. In addition, overall customer service levels were significantly improved.

3PL Business Planning Case Study 

Business Challenge

In 2006, a small U.S. based 3PL with expertise in high-tech order fulfillment and reverse logistics engaged A&A to help it develop a strategic plan to drive substantial growth.

Our Solution

An operational review and analysis of the 3PLs executive management, information technology, value-added warehousing and distribution capabilities, test & repair capabilities, pricing procedures, competitive differentiators, and customer relationships was performed. The 3PLs service performance and key performance indicator (KPI) metrics were reviewed against industry benchmarks. Using A&A's proprietary market research, a comprehensive business plan detailing the 3PLs strengths, weaknesses, market opportunities, and competitive threats was prepared. The plan identified capabilities gaps and recommended business growth strategies. It was identified that the 3PL had a competitive advantage within high-tech markets requiring high volume fulfillment and test & repair value-added services.

Business Value

The complete process from performing the internal 3PL capabilities analysis, market analysis, and overall business plan development was completed in three months. As a result of the planning exercise and by focusing on the 3PLs market strengths and opportunities, the 3PL has grown revenues at over 30% per year and has greatly expanded its account base.

Centralized Transportation Management Program Case Study

 

Business Challenge

A&A contracted with the U.S. division of a $12B German distributor in 2005 to improve its transportation management processes. The U.S. division had grown by acquiring multiple companies and each was sourcing transportation in an uncoordinated, decentralized fashion.

 

Our Solution

A&A developed a combined contract motor carrier request for proposal (RFP) and managed a centralized carrier bid process. A master client/carrier agreement was developed for the client and rates, accessorial and handling charges, and fuel surcharges were standardized as part of the process. A&A worked in finalizing the carrier agreements and developed an online website for the client with all of the pertinent carrier routing and contract information.

 

Business Value

The first year savings alone were over $2 million. A&A continued working with the client for an additional three years accruing transportation cost savings in excess of $5 million.

3PL Merger & Acquisition Advisory Services Case Study

 

Business Challenge

A leading global 3PL engaged A&A in to help it find acquisition candidates to meet its U.S. distribution network growth objectives.

 

Our Solution

The search began with the development of targeted presentation materials showcasing the acquiring 3PL, its current operations, profitable market position, long-term growth plans, and acquisition candidate criteria. A&A leveraged its industry executive management network in contacting target 3PLs. Multiple potential qualified 3PL acquisition candidates were identified.

 

Business Value

After multiple analyses, the acquiring 3PL entered into the due diligence process with a profitable growing mid-sized value-added warehousing provider early in the summer of 2008. The deal was closed in August 2008.

3PL Operational Due Diligence Services Case Study

 

Business Challenge

A&A was engaged by a large global  investment fund company to review the operations of a privately-held Brazilian 3PL.

 

Our Solution

An operational review of the target company’s executive management, information technology, transportation management, warehousing, pricing procedures, differentiating capabilities, and cultural fit was performed. Service performance and key performance indicator (KPI) metrics were reviewed against industry benchmarks. It was identified that the company had a competitive advantage within some highly regulated markets and had very strong value-added warehousing and distribution capabilities. Also, having grown organically in Brazil, the 3PL had addressed all of the Country’s unique tax and regulatory issues. Using A&A's proprietary market research a comprehensive reporting of the 3PLs strengths, weakness, market opportunities, and competitive threats was made to the investment firm. A&A also identified capabilities gaps and recommended business growth strategies.

 

Business Value

Based upon A&A’s report and recommendations the fund investment company made a $100 million investment in the 3PL.