Uncovering Hidden Operational Costs
Sarah's logistics company was profitable on paper, but cash flow remained tight despite steady revenue growth. Traditional accounting showed healthy margins, but something wasn't adding up. Our statistical analysis revealed the real issue: route inefficiencies were costing approximately 18% more in fuel and driver overtime than industry benchmarks.
By analyzing delivery data across different time periods, we identified specific routes and delivery windows that consistently exceeded optimal timeframes. The pattern was subtle — individual routes looked fine, but the cumulative impact was substantial. We also discovered that customer payment terms varied significantly, creating unnecessary cash flow volatility.
Sarah implemented route optimization based on our statistical findings and standardized payment terms for new contracts. The changes took six months to fully implement, but the results speak for themselves. More importantly, she now has monthly dashboards that prevent similar inefficiencies from developing.