Revenue Growth Strategy

Logistics
 

The situation

A client in the logistics industry, handling bulk commodities, steel and iron products, and containers was struggling to create realistic financial forecasts.  This prevented them from assessing operational performance and making financially effective decisions.  DBA created a better financial solution to improve the ability to forecast accurately with a customised revenue, cost and profit model.

 

The DBA involvement

 

We determined the true cost-to-serve and analysed tariff allocations, including:

  • Reviewing and analysing the historical cost structure and drivers

  • Allocating costs to specific product lines and operating divisions

  • Identifying and quantifying of cost drivers to determine the true cost-to-serve

  • Assessing of volume-price models and forecasting of future increases

Key outcomes

  • Detailed financial forecasts and opportunity assessments

  • True cost-to-serve and profitability determined for each division and product line

  • Detailed five-year cost and revenue forecasts 

  • Identified opportunities worth over R25M in profit by changing contract and tariff management

  • Financial assessment and recommendation for other operational opportunities and capital pipeline

Cost Analysis Excerpt

Price-Volume Analysis

Forecast Operating Profit overall and per berth

Valued Opportunities and CapEx Assessments