ケーススタディ
Bain's client, an international air freight services company, was suffering from poor financial performance. Bain's analysis uncovered the root causes of the company's loss of revenue and profit. We recommended a list of quick-hit initiatives that yielded a potential profit improvement of $250 million.
DeliveryCo* is an international airfreight services company. Its financial performance was suffering from declining revenues and it had had an unprofitable past year. DeliveryCo had opportunities to grow its revenues profitably through tackling several areas:
DeliveryCo asked Bain to address three questions:
Bain took a typical revenue hunt approach which begins with building a fact base. This included quantifying the sources of revenue, assessing profitability of customer and product mix, evaluating sales and channel dynamics and assessing marketing and pricing effectiveness. Building the fact base uncovered:
Synthesis of the fact base resulted in a list of profit improvement initiatives that ranged from short to long-term programs. These initiatives were prioritized and sequenced based on value vs. ease of implementation. Benefits and risks for each program were carefully weighed.
Initiatives were grouped into change programs worth ~$100M in profit.
The profit improvement initiative started in April and delivered EBIT improvement within the same year.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.
