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Magna Valor
Magna Valor

Profitability increase for a global logistic service provider

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Our Client is a global logistic service provider delivering solutions in warehousing, land, air and sea transportation.

CapabilityBusiness developmentShare

Challenge

One of the company’s branches was facing severe financial difficulties, operating at a -15% margin. The problems stemmed from losing clients, subpar service levels that led to negative feedback, and high fixed costs. An unfavorable location further increased overheads, making profitability even harder to achieve. This crisis not only threatened the branch’s survival but also harmed the company’s overall brand reputation.

Actions

To restore profitability, the company implemented a comprehensive recovery strategy. The most important steps included:

  • Active Client Acquisition – launching an intensive marketing and sales campaign, conducting market analysis, reaching out directly to potential clients, and tailoring service offerings to meet their specific needs.
  • Enhancing Service Levels – staff training in customer service excellence, process optimization for faster and more reliable delivery, and the introduction of feedback mechanisms to continuously improve quality.
  • Relocating the Branch – moving operations to a more cost-effective location, reducing rental and operating costs while ensuring accessibility for clients.

Results

Within just one year, the turnaround strategy delivered measurable improvements:

  • Profitability restored – the branch moved from a -15% margin to a +5% margin, securing its future.
  • Client base growth – the new acquisition strategy attracted additional clients and expanded market reach.
  • Improved customer satisfaction – better service levels resulted in positive feedback and stronger client loyalty.
  • Reduced fixed costs – relocation achieved a 15% decrease in overheads, significantly boosting financial performance.

Short Summary

The branch successfully transformed its performance, moving from a -15% loss to a +5% profit in just one year. This was achieved through winning new clients, improving service levels, and relocating to cut fixed costs by 15%. As a result, the branch secured its financial health, strengthened customer relationships, and contributed positively to the company’s overall results.