Transport and logistics

We assist clients by optimising system-wide logistics to maximise value for them. This can reduce the total delivered cost of transportation and warehousing, maximise throughput, reduce lead times and inventory or increase customer satisfaction.

Our clients include global leaders across the value chain of transportation and logistics. They include third-party logistics providers, railways, airlines, port operators, ocean shippers, major retailers and distributors. Our consultants bring our extensive experience to these areas and ensure that when we leave, our clients are equipped with the tools and capabilities they need to continue to deliver results and grow.

Our global experience assists transport and logistics clients with:

  • Performance improvement, including cost reduction, supply chain and warehouse management and debottlenecking
  • Growth strategy
  • Improved Sales Force Effectiveness
  • Fleet and network optimisation
  • Procurement
  • Workforce management and relations

We also bring extensive private equity experience to this industry sector. We can help clients evaluate potential deals through due diligence, execute post-merger integration and turnaround-and-exit.

Examples of what we have helped our clients achieve:

Improved throughput

  • Increased throughput by 18% in four months across an integrated coal export logistics system, comprising more than 30 mines, a train operator and two ports
  • Increased throughput by 35% in 12 months across an ore supply chain by improving car dumper performance and rail depot management
  • Reduced fuel burn by 1% across aircraft fleets by changing pilot behaviour

Reduced handling and turnaround time

  • Reduced, in six months, railway wagon turnaround time by 63% and wagon handling time by 60% for iron ore client. This was achieved by improving wiring – setting and tracking Key Performance Indicators (KPIs), embedding Root Cause Analysis practices and coaching Operators and Foremen.

Improved warehouse management and performance

  • Increased a client’s throughput to the value of $4.5m by reducing the incidence of Parts Not Available
  • Reduce annual spend by $20m through spend and market analysis, sourcing strategy development, tender evaluation and supplier negotiations
  • Developed a renegotiation strategy for a major contract, resulting in a 15% savings
  • Increased gold production by 22% by reducing downtime due to missing parts by 78%, and reduced supply chain costs by 15% at the logistics and support centre of a gold mine.
  • Increase inventory accuracy by 20% and critical parts in stock by 43% while reducing age of inventory held by 35% at a nickel mine

Enhanced capital productivity

  • Transformed the world’s largest coal terminal to deliver additional capacity, worth AU$100m p.a., while reducing operating costs by AU$15.5m p.a
  • Increased rail capacity for an underground copper mine by 15%, without additional capital expenditure (CAPEX)
  • Developed rail capacity expansion strategy focused on debottlenecking versus adding lines

Reduced contracting and sourcing costs

  • Improved contractor spend at a bulk materials port by $30m p.a. for a major iron ore house by reducing shuts, restructuring the roster, improving work practices and consolidating workshops
  • Saved AU$10.3m p.a. in sourcing costs in less than 20 weeks for a major logistics company: achieved by negotiating rapid sourcing with over 140 suppliers
  • Reduced labour requirements by 18% for a large freight shipping company through internal productivity improvements and outsourcing opportunities
  • Developed a $47m pipeline of procurement savings in eight weeks, through both Rapid and Strategic Sourcing, with delivered savings of $25m

Reduced workforce management

  • Reduced labour requirements by 18% for a large freight shipping company by making internal productivity improvements and capturing outsourcing opportunities
  • Increased labour utilisation by 10% for airline operational resources by ensuring better optimisation and adherence to labour contracts
  • Reduced labour requirements by 15% in an airline’s customer service areas by improving roster planning
Partners in Performance were able to quickly identify the priority issues, and recommend, a common pathway forward, which was accepted by the various interests in the Hunter Valley Coal Chain. This enabled us to rapidly resource and deliver improvements across all elements of the coal chain, (rail, port, track, users), with a number of solutions that optimised for the group as a whole. DAVID, GENERAL MANAGER, COAL MINING INDUSTRY

Relevant case studies

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