The Current Reality - Having a Lower Cost Base Than Your Competitors
Many business owners or managers claim that…
“The only way to enhance productivity and grow a business is by investing in having a lower cost base than your competitors”
Case Study
Freight forwarders and logistics companies commonly report they struggle with:
- Missing cut off dates and deadlines
- Incurring too many penalties and charges
- Staff that are overloaded
- Quoting rates being a balancing act
- Sales being constantly under pressure
- Low margins
- And much more.
In freight forwarding, you compete for clients and sometimes make a loss from penalties when a cut-off date is missed. Consequently, there is significant pressure to take on extra staff to meet the surges in jobs that are caused by the individual ship and plane cargo loads. Costs rise as a result and profit drops. The firms with a lower cost base have a commercial advantage which is deployed to win sales.
