We’re eager to assist these companies in improving their operations, increasing profitability and planning for future growth and see these new assignments as validation of our leading position within the transportation industry
Phoenix, AZ (PRWEB) November 21, 2011
Rounding out what has been a record year for mergers and acquisitions for the transportation consultants at Ahern and Associates, Ltd., the firm has again been engaged by three new clients to enhance operating efficiencies, improve overall profitability and properly position them for the next three to five years. The new consulting assignments come on the heels of their most recently closed deal in which Andy Ahern, CEO of Ahern and Associates aided Bennett International in the acquisition of Best Ways Brokerage.
Ahern has repeatedly demonstrated unequaled proficiency in assisting trucking and logistics companies of all sizes in improving operations and cutting expenses--ranging from the regional carriers with a few independent operators to the nation’s largest publicly held companies. Half of Ahern’s practice involves mergers and acquisitions while the other half of their business involves assisting trucking, logistics and warehousing companies in improving their profitability, establishing strategic plans for growth and also developing exit strategies.
Ahern’s first assignment was with a less than truckload (LTL) carrier who has asked the firm to review their core operating elements to individual shipments, customers, shipping points, rates for bids, routes and terminals. As part of Ahern’s thorough, on-site analysis, the team of consultants also reviewed which segments of the business are currently profitable and which are not profitable. In addition, Ahern and Associates reviewed and analyzed:
- The company’s base rate.
- Their revenues per hundred weight per shipment and per segment.
- The surcharge per hundred weight per shipment and per segment.
Also analyzed and tracked was the company’s cost and productivity separately for pick up routes, delivery routes, stops, crossed docks and line hauls.
Ahern’s analysis also included time data, pound per man hour, load factors and other productivity assignments. Concluding their assignment, the firm was able to demonstrate an actual savings in excess of $750K to the company’s bottom line profitability within a 60-90 day period.
Ahern’s next assignment is with a flatbed carrier which requires assistance in developing a five year business plan and exit plan. This company is very well established in the community with a twenty year track record of specializing in flatbed operations and utilizing independent contractors.
Ahern has been contracted to review their individual loads, customers, shipping points, rates for bids, lanes, independent contractor productivity. As part of their analysis, Ahern will also review the total revenues, total expenses and bottom line profit dollars; profit percentages and operating ratios. Their process will also closely analyze:
- Line haul revenue per mile, per load and per segment.
- Surcharge revenue per mile, per load and per segment.
Ahern and his staff will also analyze the loaded miles, total miles and empty miles, and rank their customers based on operating ratios, profit dollars and other criteria.
The final of the most recent assignments is for a truckload/van operation which has been in business in excess of 25 years. The company is currently profitable and wishes to improve their profitability and increase overall market share.
In addition, the company asked for Ahern’s assistance in providing a software program that will generate a detailed P&L statement that shows which segments of their business is profitable, which segments of their business is not profitable and provide instantaneous costing for their sales staff when providing quotes to customers.
For Ahern’s clients, the solution to that request is most often found in their acclaimed Financial I.Q. transportation software. Financial I.Q. has the unique ability to create “what if” capabilities for measuring the bottom line affect in any changes and rates, cost productivity, miles per gallon, business volume and other items. It’s a standalone Windows program that operates on desk top and laptop computers.
“We’re eager to assist these companies in improving their operations, increasing profitability and planning for future growth and see these new assignments as validation of our leading position within the transportation industry,” explained Ahern.
About Ahern & Associates, Ltd.:
Ahern and Associates is North America’s leading trucking and transportation management consulting firm. The skilled consultants at Ahern and Associates specialize in mergers and acquisitions of trucking and logistics companies as well as the restructuring and evaluation of existing carriers that seek to increase operating efficiency and improve profitability. Since 1987, Ahern and Associates has aided hundreds of buyers in the acquisition of trucking and logistics companies throughout the U.S. and Canada as well as assisting many transportation and logistics companies in reducing their overall operating costs and increasing their profitability. For more information, please call 602-242-1030 or visit http://www.Ahern-Ltd.com
Jason W. Jantzen
Phoenix Marketing Associates