What We Mean by "Logistics"

It’s a broad category, but the main cost streams are:

• Parcels

• Pallets and road haulage

• Freight forwarding

Even large, sophisticated businesses, with logistics managers, procurement specialists, or COOs – we regularly see on average:

• 25%+ savings on parcels

• 10%+ savings on pallets and road haulage

• 17%+ savings on freight forwarding

Why the Savings Are So Large

It is not because we’re “better” than our clients. Many are highly capable operators. The difference is market perspective - most companies “only know what they know” within the boundaries of their own operation. The deal they have may be the best they have ever had, but that doesn’t mean it is the best in the market. Here is why we can often unlock more:

1. Market Visibility

We see what is happening across multiple businesses in similar sectors, regions, and volumes. We know the full range of what is possible, the good, the bad, and the ugly. We can spot where competitors have an advantage over your delivery policy.

2. Scale and Influence

At any given time, we may have £100m+ of logistics spend under review, plugged in at board level with major carriers and forwarders. We know:

• Who has spare capacity.

• Which carriers are aggressively seeking certain profiles.

• Who applies surcharges when others don’t.

• Because of our senior relationships, we can often dictate and secure rates efficiently and without lengthy tenders.

3. Independence

We are paid by our clients, not carriers, making us market agnostic. We choose the right carrier for your needs, and not because they are our “preferred partner”.

Case Studies: GSF Car Parts & Mi Hub

Both market leaders. Both highly experienced. Both private equity-backed. In each case, we implemented new parcel contracts with carriers whose service profile better matched their volume and delivery patterns.

The result: over £1m per year in profit improvement. For businesses operating on sub-10% margins, that’s the equivalent of £10m+ in extra annual sales without selling a single extra product. For their investors, that saving likely translates into £6m–£10m in added business valuation.

Why This Matters Now

The logistics market is volatile. We have seen major carriers disappear, large-scale acquisitions reshape the sector, and global freight rates swing from $1,000 to $22,000 per container in just four years. Those who only chase today’s cheapest spot price often miss the bigger picture. One client “shopped around” daily to save $50 per shipment; another applied a hedged, fixed-rate strategy — and never paid more than $2,000 per container through the entire period of volatility.

How to Think Strategically About Logistics

It’s not just about securing a lower rate. Consider:

• Should you be using a multi-carrier solution to balance service and cost?

• Are you tracking carrier KPIs such as on-time delivery and customer satisfaction?

• Do you have contingency carriers if service levels drop or a carrier fails?

• Could packaging redesign reduce cubic volume and cost?

• Can you pool collections to reduce carbon footprint and costs?

• Could payment terms be improved to boost working capital?

• Can contracts be hedged against CPI or structured for cost avoidance?

• What’s your blended 12-month cost, not just today’s rate?

Final Thought

This isn’t a sales pitch, as we are always busy. It’s a challenge: benchmark yourself against peers and competitors. You could be sitting on a goldmine - a change that could transform your profitability and deliver a better customer experience.