Freight & Logistics

Opportunities from disruption in the freight & logistics sector

From macro shifts like the move toward miniaturization in packaging to sector-specific trends such as the use of drones and autonomous technology in transport, the freight and logistics sector is undergoing disruption — and generating opportunities — on multiple levels. Major global players are acquiring and building end-to-end logistics networks. Customers are demanding ever higher service levels. Shippers and investors are applying pressure to reduce emissions across the supply chain. Disruption is being felt across all modes and market segments up and down the value chain.

How we help

Here at L.E.K. Consulting we work with shippers, carriers, integrated logistics players and specialist logistics clients to help make critical investment decisions and navigate a rapidly changing market. We create value for clients through our extensive experience across mail and parcels; less than container load (LCL), less than truck load (LTL) and full truck load (FTL) networks, pallet networks, and containerized shipping and inland networks; dry and liquid bulk tanker freight; cold-chain logistics; dangerous goods; and other specialty logistics in both B2B and B2C environments, including ecommerce fulfilment providers, trucking and rail freight operators, third-party logistics (3PL) providers, air freight operators, freight forwarders, port owners and terminal operators, shipping companies, government bodies, and all types of investors, including infrastructure funds, sovereign wealth funds, publicly quoted companies and private investors.

Our logistics specialists have a deep understanding of the key business challenges across the freight and logistics sector. Clients ask us:

• How do we participate in the global consolidation of the sector?

• How do we pursue business growth in the context of “peak stuff”?

• How do we compete in the race to provide the most comprehensive end-to-end logistics services?

• How do we size the potential for international expansion and new market entry?

• What is the best network structure to adopt to support our business and deliver growth?

• How do we position for growth in a complex market with many moving parts?

• How do we organize to improve operational performance?

• How do we continually reduce costs by addressing inventory (fast, medium and slow categories and obsoletes); warehouse layout and equipment optimisation; automation; terms of trade; and value for money from carriage contracts, fleet strategy, and staff rostering

• How do we stay on top of — and best leverage — technological advances?

• How do we move toward sustainable operations, reducing emissions and providing our customers with validated sustainable supply chain solutions?

Our expertise in action

Take a look at the brief case studies below or contact the team to hear more about our logistics project experience.

• Restructured a print media supply chain to drive cost reduction in the context of a market with a complex set of relationships and economic linkages. We provided the client with input and guidance around its optimum strategy and identified the key areas for implementation.

• Growth strategy validation for an asset-light van delivery network including assessing the load efficiency and routing gains from new algorithms for combining jobs, and then commercial opportunity to use pricing to nudge customers toward more efficient slots for combined loads.

• Go-to-market strategy for a ports group assessing regional and commodity strategies, exploring where to outsource, partner or acquire logistics providers and how to develop enhanced key account management practices.

• Regulatory economic advice to rail freight operators regarding access charges and road-to-rail subsidies.

• Portfolio assessment for an ecommerce fulfilment provider, reviewing its single and multi-user warehouses, client portfolio, parcels strategy and growth opportunities.

• Market sizing for European expansion and assessment of new market entry opportunities for a palletized network delivery service. We provided a clear view of the best market opportunity and go-to-market strategy for the launch of the new business.

• Commercial and vendor due diligence for a range of national and international distributors, non-vessel-operating common carriers and logistics companies, to assist our clients in evaluating potential deals and successfully executing mergers and acquisitions.