Case Study: Ozburn-Hessey Logistics, Inc.

Description:
Ozburn-Hessey Logistics, Inc. (“OHL”) was a privately held international 3PL providing value added logistics and warehousing, spot market and contract transportation services, international freight forwarding and customs brokerage.  We were engaged by the Company as the acting CFO of the North American Transportation division as it transitioned from centralized financial control to divisional financial control.

Process:
Upon assuming the role of interim CFO all aspects of the existing planning, forecasting and reporting of the division’s financials were reviewed.  Meetings were held with direct reports to review headcount, IT, new business implementations, receivables and sales.  Concurrent with the transition process a series of Tiger teams were assembled to immediately tackle various components of a shortfall in the annual budget.

Results:
Entirely new analyses and reporting techniques were developed that provided management with a clear understanding of the business, including:  trended customer profitability with volume, rate and length of relationship; new business implementation tracking; new business pricing model; sales performance reporting; rationalization of outsourced IT and underperforming account management.   The Tiger teams were able to reduce the current year budget shortfall by 25%.  A new budget for the following year was established with detailed bridge analyses and forward looking contingency plans.  Our interim role was smoothly transitioned to a permanent CFO position.  This was the second of three assignments at OHL.