Case Studies
Abbreviated Client List
Top Ten Global Logistics Service Provider
Ocean Strategy and Competitive Assessment
$97B in total 2021 revenues headquartered
CLIENT SITUATION
MCG conducted a comprehensive review of all aspects of the client's Ocean Freight Services, which encompassed products, finances, operations, costs, technology, best practices, and sales management strategies. This thorough analysis aimed to identify areas for improvement and opportunities for enhancing overall efficiency and effectiveness within the operations.
PROJECT APPROACH
Performed a comprehensive situational assessment of key areas within the business while taking into account both internal and external factors that may influence operations. Completed a thorough competitive gap analysis against recognized industry best practices based on essential metrics. Additionally, incorporated valuable customer feedback and conducted in-depth interviews across all major geographies, engaging with key stakeholders from central management, regional product owners, and key account managers (KAMs) to gather insights and perspectives.
Advised client on best-in-class transportation management systems (TMS) to replace an existing network of disparate applications loosely integrated following years of smaller regional acquisitions.
CLIENT IMPACT
Savings of $175M were found across five main areas: carrier sourcing, better load planning for capacity use, more efficient order handling by reducing file interactions and costs, automated freight settlement, and a focused sales strategy with competitive incentives for higher-margin products/services. After more than ten years of acquisitions leading to a mix of old and added IT systems, MCG successfully advised the client to purchase and implement an advanced Order Management System/Transportation Management System from a select group of vendors.
“MCG brought a deep knowledge and understanding of logistics best practices along with an emphasis on current as well as anticipated market trends. They offer a strong combination of hands-on industry experience, business consulting, and IT strategy to help identify key growth and value drivers. MCG worked professionally and effectively with our teams across various functional areas and geographies to deliver the project on time and exceeding expectations. ”
CLIENT FEEDBACK
Fleet Management Transformation
Digital transformation - fleet management system assessment & RFP
$1.4B in total 2017 revenues headquartered in Atlanta
CLIENT SITUATION
The client, a major less-than-truckload (LTL) operator with a network of 5,500 trucks (power units) and 20,000 trailers, was struggling to effectively manage its growing fleet. Their outdated fleet management system could not support the complexity of their expanding network, which included branches, DCs, warehouses, and cross-dock operations across the US and Canada.
PROJECT APPROACH
Conducted a comprehensive end-to-end assessment of their operations, which included an in-depth analysis of their people, processes, and systems. Benchmarked their financial performance meticulously against industry peers and conducted thorough interviews with both internal stakeholders and external partners to identify significant inefficiencies as well as potential improvement opportunities. Assessed existing systems and team capabilities comprehensively to develop a robust and executable transformation plan that positions the organization for future success.
CLIENT IMPACT
Led the implementation of a leading enterprise TMS with fleet management over an 8-month phased approach, ensuring minimal disruption to operations and customers. Achieved a projected network-wide cost savings of 22% through optimized routing, improved asset utilization, and increased automation.
Japanese Automaker - Managed Transportation
Network Optimization Study & Business Case Support
$75B in revenue, one of the largest OEMs in NA by volume of cars produced
CLIENT SITUATION
TThe client was carefully evaluating whether to continue working under a 4PL (managed services) model or to make a strategic shift to an insourced or hybrid model by thoroughly assessing and implementing a leading Transportation Management System (TMS). This decision involves considering the potential advantages and drawbacks associated with each approach, as well as determining the best fit for their operational needs and long-term business objectives.
PROJECT APPROACH
MCG actively consulted with the client regarding the latest capabilities and features that are currently available from leading TMS vendors in the industry. We supported their efforts in systematically formalizing a Request for Proposal (RFP), ensuring that all necessary content and specific requirements were thoroughly included. Additionally, we performed an extensive 8-week "proof of concept," which included a detailed supply chain analysis focusing on a selected portion of the client's inbound supplier network within North America.
CLIENT IMPACT
Identified 12-14% savings through the introduction of several new cross-docks and the strategic addition of new multi-stop routes within their existing supplier network. Additionally, we provided a comprehensive trailer loop diagnostic that yielded further savings through enhanced equipment utilization. These impressive results were instrumental in securing the necessary budget approval from headquarters in Japan for a significant 10-year investment in a leading enterprise Transportation Management System (TMS).
“Dirk Stammnitz supported us in building a formal business case for a substantial investment in a future IT system, by executing a successful POC, as well as developing a comprehensive list of TMS requirements in order to execute a formal RFP.”
CLIENT FEEDBACK
Multinational Food & Beverage Company with recent Snack Food Acquisition
Operational & Freight Assessment due to recent high-growth
$1.75B in revenue
CLIENT SITUATION
Rapid growth after the client's recent $70M acquisition in the snack food category caused high costs and overruns from transportation and warehousing services. This led to poor visibility and control across the company, resulting in lower customer service and increasing lost sales.
PROJECT APPROACH
MCG completed various in-depth analyses and deep dives into critical areas where the business was experiencing significant underperformance. Notable improvements included:
Establishing a comprehensive “Available-to-Promise” (ATP) inventory system
Conducting a thorough study to determine the optimal distribution center (DC) locations while taking into account both suppliers and customers
Introducing an efficient dock scheduling solution to significantly reduce carrier demurrage fees and associated staffing and overtime charges
Developing an intricate financial model comparing “managed services” through a fourth-party logistics (4PL) model versus a hybrid approach that utilizes the Client’s preferred third-party logistics (3PL) partner, alongside an advanced end-to-end warehouse management system (WMS) and transportation management system (TMS).
As a result of these efforts, MCG produced an effective and strategic roadmap that prioritizes both short-term and long-term improvements, while also identifying several quick wins to support and enable future IT capital expenditure (CAPEX) investments.
CLIENT IMPACT
MCG found $11.5M in savings through various improvement levers such as increased warehouse visibility, carrier sourcing, transport order management, dock scheduling, freight cost management, and enhanced customer service, which also boosted account retention.
“MCG provided a comprehensive and detailed project summary with recommendations. We will certainly stay in touch as there may be some additional work coming off the roadmap. ”
CLIENT FEEDBACK
Multinational Fast-moving Consumer Goods Company
Ocean Freight Strategy for Carrier/Forwarder Sourcing & Operations
$17B in revenue
CLIENT SITUATION
The client was facing substantially higher costs in their Ocean business, with a total of $110 million in freight spend, due in large part to extremely tight carrier capacity. This situation was exacerbated by historic rate increases implemented across the industry, along with dramatically longer transit times. Additionally, there has been a notable rise in demurrage fees, coupled with declining service levels that have further complicated their logistics operations.
PROJECT APPROACH
MCG conducted a thorough and extensive analysis of the Client's current freight spending, lane and volume density, carrier and forwarder allocations, rates, and service levels. We assisted the Client in effectively identifying those specific trades and lanes where the implementation of a carrier direct model could be favorably considered and subsequently executed, all while adopting a phased-in approach to ensure smooth transitions. Additionally, we shared various options with the Client regarding innovative sourcing tools and strategic pricing strategies. During this process, we also engaged in preliminary discussions and negotiations with NVOs and BCOs, clearly signaling a definitive shift in both sourcing and carrier strategy going forward.
CLIENT IMPACT
A significant savings of $18.3 million was identified as a result of a comprehensive carrier sourcing strategy, in addition to the implementation of more advanced shipment planning and consolidation methods, which provided enhanced rate visibility and improved compliance with accessorial costs. The client expressed a high level of satisfaction with MCG’s carefully measured approach. In previous instances, they had remained hesitant to shift away from a 100% NVO model. By effectively identifying and prioritizing specific lanes alongside their respective carriers, the effort was both more focused and deliberate, ultimately driving meaningful results.
“It was a pleasure working with MCG. We were in constant communication throughout and they delivered on the scope and objective of the project. MCG was able to connect us with the right contacts in the industry and helped facilitate those conversations. Overall, we were well pleased with the outcome of the project and appreciate MCG’s expertise, communication, and professionalism.”
CLIENT FEEDBACK
Leading Global Supplier of Technology & Services
Autonomous Vehicles US Transportation and Trucking Market Assessment
$83B in revenue
CLIENT SITUATION
The client was engaged in the development of innovative early-stage technology and advanced hardware tailored specifically for start-up trucking companies operating within the rapidly evolving autonomous vehicle industry. They required the expertise of a knowledgeable professional to provide valuable insights regarding the current landscape of the U.S. truck market, with a particular emphasis on the key areas of technology, automation, and digital integrations. Additionally, they were keen on identifying further areas and potential opportunities within the broader value chain, which could pave the way for enhanced future services.
PROJECT APPROACH
MCG prepared an extensive 2-day presentation and interactive workshop that covered many of the newest developments currently taking place in the trucking industry, with a particular focus on technology awareness and the adoption of innovative solutions. The content was thoughtfully presented to a diverse team of 18 employees, who came from a wide range of senior management and C-level backgrounds and experiences throughout the Client's organization. This gathering was largely concentrated on key areas such as strategic planning, product innovation, and the exploration of new business expansion opportunities.
CLIENT IMPACT
The report provided a comprehensive and detailed summary of the trucking industry, emphasizing its ongoing digital evolution, diverse market segmentation, as well as current and future trends. Additionally, it offered insights into potential opportunities for growth and advancement, along with possible outcomes and implications of autonomous vehicle (AV) adoption within this sector. This thorough analysis serves as a valuable resource for understanding the dynamics at play in the trucking landscape today and in the coming years.
“We had a fantastic experience with Dirk/MCG – he was proactive, very knowledgeable about the space and willing to work with our change in timing. We hope to find another opportunity to work with Dirk again.”
CLIENT FEEDBACK