Case Study
Leading North American Finished-Vehicle Logistics Organization Achieves Long-Term EBITDA Improvement Through Load, Route, and Network Optimization, Positioning the Company for an IPO
$41M
Annualized EBITDA Improvement
Strategic Imperative
To deliver maximum long-term sustainable growth by driving EBITDA improvement, positioning the company for additional acquisitions, and taking the company public
Client Background
- Largest North American carrier of new and pre-owned vehicles, employing 5,000 people and serving major automotive manufacturers
- Integrated transportation and logistics operations spanned the United States, Canada, and Mexico across complex automotive supply chains
- More than 50 terminals operated near automotive assembly plants, ports, and rail distribution centers
- Network economics depended on load factor, route efficiency, backhaul utilization, equipment deployment, and terminal coordination
- Core automotive customers demanded faster cycle times and stronger on-time delivery across the finished-vehicle network
- EBITDA and margins declined 4% year over year, falling below budget and jeopardizing near-term public-market plans
Key Issues & Barriers
- Executive and management teams were disconnected, weakening alignment and coordinated execution across the transportation network
- Leadership devoted insufficient attention to cost drivers, limiting margin control and terminal-level accountability
- Regions and terminals operated independently, preventing shared power and route structures from optimizing demand, capacity, and mileage
- Sales and Operations planning was not aligned with commercial objectives or customer demand across the network
- Network demand, equipment deployment, and capacity planning were not integrated, limiting load efficiency and fleet utilization
- Backhaul opportunities lacked consistent targets and enterprise coordination, leaving empty mileage and transportation costs unoptimized
Key Implementation Components
- Aligned management team priorities around customer service, commercial objectives, cost drivers, and network performance
- Implemented an organization-wide System for Managing to standardize performance control across regions and terminals
- Aligned Sales and Operations planning with commercial objectives and customer demand across the finished-vehicle network
- Enhanced network demand, equipment deployment, and capacity planning to improve load, route, and fleet decisions
- Maximized resource utilization across terminals by sharing power, routes, capacity, and mileage opportunities
- Established and achieved backhaul targets to improve fleet asset utilization and reduce transportation costs
Benefits & Results
$41M
Annualized EBITDA Improvement
85%
Empty Miles Reduction
4 PP
Load Factor Improvement
5 PP
Load Efficiency Improvement