The Current Reality - The Situation
In this lesson, you will see some examples from the logistics industry. However, do note that a Productivity Journey applies to all industries. The issues are generic to almost all businesses.
Case Study
Steve is the owner of Fast Freight, a small forwarding business.
He is reviewing the latest P&L report and is disheartened to see the numbers are not as good as he would like. It is a real struggle to expand and grow due to the business’s tight cash flows.
When Steve compares Fast Freight to the larger firms within the forwarding industry, they seem to be profitable and growing despite the high cost base and low margins endemic to the industry, whilst offering a competitive rate at the same time.
Steve has to fight hard to get Fast Freight seen, and taken seriously, and he frequently relies on the strong personal relationships of his small team to ‘poach’ and hold clients.
Problem: Currently, improving productivity is seen to be a big, comprehensive project that takes a lot of time and effort. It has the potential to be very disruptive to business as usual.
