Integral Result Optimization in Transport and Logistics

The new approach developed by concipio management solutions GmbH

Concipio management solutions GmbH

• Founded in May 2013 by Jörg Frommeyer.

• Jörg Frommeyer has a long experience in the management of companies in the transport- and logistics industry as managing director.

• Several years worldwide responsibility for the Overland-Network of Kuehne + Nagel. Reporting line directly to the Group CEO.

• Detailed list of experiences can be found on the homepage.

• Jörg Frommeyer is supported by a network of market experts with a very good reputation in the market.

Our Services

• European KPI Benchmarking – Anonymized comparison of performance indicators

• Network Monitoring – Structure analysis for optimized usage of ressources

• Management Support – Pragmatic support in daily business by experienced Experts

Cost control is one part only…

For many years, transport companies have to cope with low margins. The services are exchangeable and as transport is not bound to one fixed location, competition is fierce. Price pressure is tremendous and costs are rising permanently.

Managing your costs accurately is important. To survive these difficult times, it is necessary to optimize your full P + L, not just the cost side.

Concipio management solutions has developed a set of solutions to support you managing your P + L in an integral way.

Manage your whole Profit and Loss Statement!

• The first driver for your profitability is your Gross Profit margin Do you really achieve the maximum?

• The cost side consists of several elements Are you sure you are competitive in all

cost areas?

TurnoverTurnover

Trade ExpensesTrade Expenses./.

= Gross Profit

Staff CostsStaff Costs

Facility CostsFacility Costs

Admin CostsAdmin Costs./.

./.

./.

= Net Profit

The 4 main cost drivers in transport

• Transport processes consist of 4 main cost drivers

Local Traffic costs

Local Traffic costs

Handling costs

Handling costs

Linehaul costs

Linehaul costs

Admin costs

Admin costs+ ++ = total direct costs

• Some of these costs are shown before the Gross Profit in your P + L trade expenses• Some other elements are shown in the direct costs of your P + L

Full optimization of all cost drivers

• There is potential to save costs in all cost driving elements of your P + L

Local Traffic costs

Local Traffic costs

Handling costs

Handling costs

Linehaul costs

Linehaul costs

Admin costs

Admin costs+ ++

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

./. ./../../.

= = = =

Full optimization of all cost drivers

• Do you achieve the maximum saving potential of all cost drivers?

Local Traffic costs

Local Traffic costs

Handling costs

Handling costs

Linehaul costs

Linehaul costs

Admin costs

Admin costs+ ++

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Saving Potential

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

Optimal cost level

./. ./../../.

= = = =

=

=

=

Total costsTotal costs

Total Saving

Potential

Total Saving

Potential

Cost Leadership

Cost Leadership

But what is the “optimal cost level“ for the cost drivers?

Benchmarking with the best of your business sector would help you to set the right targets

+ =

Setting the right targets Comparing with the best Cost leadership

The solution offered by concipio:European KPI Benchmarking

• Anonymized comparison of key performance indicators on a monthly basis.• Ranking lists showing you the performance level compared to market participants.• Creation of a Balanced Score Card to see the total saving potential.

Gross Profit margin Optimization – Improving the starting point of your Profitability

• The gross profit margin is influenced by three different parameters:

Selling PriceSelling Price

Achieving a high price from the customers should always be the first target. Pricing excellence has to be developed.

Gross Profit margin Optimization – Improving the starting point of your Profitability

• The gross profit margin is influenced by three different parameters:

Selling PriceSelling Price

Reducing the trade expenses by optimal purchasing of external services is a must. Market trends have to be followed tightly.

Purchasing Purchasing

Gross Profit margin Optimization – Improving the starting point of your Profitability

• The gross profit margin is influenced by three different parameters:

Selling PriceSelling Price

The optimal utilization of the capacities is something specific in fixed costs environments. You pay the capacities even if you do not use them completely.

Purchasing Purchasing UtilizationUtilization

Gross Profit margin Optimization – Improving the starting point of your Profitability

• The gross profit margin is influenced by three different Parameters:

Selling PriceSelling Price

To achieve the ideal gross profit margin you need to permanently work on all parameters. Concipio management solutions supports you to optimize the utilization of your capacities.

Purchasing Purchasing UtilizationUtilization+ +

Optimal Gross Profit

margin

Optimal Gross Profit

margin

=

Utilization of Linehaul Trucks – a challenging task

• Achieving a high utilization of your trucks is important to get the maximum revenue out of your paid capacities.

• Close monitoring of the utilization is crucial to be able to react quickly to negative developments.

• Changes in the customer structure, the cargo mix and the shipment structure can have a direct and significant impact on your profitability.

Concipio management solutions help you to keep track of developments of your structures.

Network Monitoring by concipio management solutions - keep your business under control

Monitor your customer structure!

• Guide your sales force to the right areas.

• See the volume development of your customers.

• Find the right location for your business.

• Optimize your local traffic.

To know where your customers are located is important to know. Changes in your customer structures have a direct impact on your cost structures.

Monitoring of Shipment structures – another important profit lever

• See development of shipment sizes and optimize your tariff system.

• Find the right customers to optimize the utilization.

• Follow developments on the different trade lanes.

The right mix of shipment sizes and shipment flows is the key to high profitability.

Utilization monitoring – squeeze your capacities

• Find result optimization potential in hidden capacity reserves.

• Optimize your routing.

• Focus your sales on filling capacities.

• Develop trade lanes efficiently.

The closer the better...Following the development of your capacities is crucial.

With the support of the solutions provided by concipio management solutions you know your potentials to optimize costs

now as well as your capacity reserves.

But we also support you with the realization.

Quick-Win-Workshop – Identify immediate potential

• Analysis of your cost situation and your competitiveness.

• Short-term cost-cutting measures with direct impact on the results.

• Implementation of simple control tools to manage your costs

In a 2 day workshop we identify quick-win potential. Finding potential to optimize results to improve your profitability immediately

Monthly Sparring – Stay agile and innovative

• Discuss your business situation on a monthly basis via video conference.

• Develop new ideas to optimize your profitability.

• Exchange information about market trends and challenges.

Is there somebody who challenges you regularly? Someone experienced who can show you new ideas for your business? Inconvenient but target-oriented?

Strategy Workshop – Find your own way

• Creating a SWOT* analysis of your company.

• Market analysis and positioning.

• Defining the market requirements.

• Discussing the future organizational setup.

In a 3 day workshop we discuss future paths of your company. Based on operational expertise and not just on theoritical assumptions.

* „Strenghts/Weaknesses/Opportunities/Threats“

Concipio management solutions GmbH was founded to support you with pragmatic solutions for your daily business.

We keep on developing new solutions that help you to further optimize your result situation.

Talk to us!

www.concipio-online.com