Optimizing global supply chains
Logistics powers global economies. While the industry has benefitted tremendously from continued technological advancement, the management of such sophisticated international networks requires the complex integration of multiple processes, each involving unique challenges. Modern logistics service providers face increased disruption due to e-commerce, changing consumer behavior, and new technology, coupled with an uncertain environment created by a global pandemic that has refocused the industry on risk and resilience.
In an industry dependent on movement, we help our clients stay nimble using strategies that can adapt to an evolving market. We work with leading logistics companies across a range of topics, including developing growth plans, applying digital analytics and developing operational cost efficiencies that drive value. Together, we help companies get things where they’re going quickly, accurately, and efficiently.
Featured insight
Case Study
Undaunted by global disruption, a logistics company embraces bold transformation
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ECU Worldwide, one of the largest less-than-container-load shipping companies in the world, chose to innovate during the COVID-19 pandemic, working with McKinsey to become tech enabled and revamp its organizational structure.
Sectors we serve
Post, parcel, and express
Identify and pursue growth opportunities while adapting to a broad range of industry trends like e-substitution, e-commerce, globalization, regulation, and innovation.
Logistics-3PL, freight forwarding, trucking, and distributors
Work across functions to capture new opportunities for the entire logistics value chain as well as truck original equipment manufacturers (OEMs), distributors, warehouses, waste management, logistics platforms, and more.
Shipping
Overcome challenges in capacity and pricing while improving logistics network planning, demand-based customer segmentation, risk management, and operations.
Freight rail
Improve ailing sections of freight rail networks and transition to modern, cross-border tracking systems.
What we do
Strategy and finance: Assess global opportunities to expand the current business model (either geographically or within industry verticals) to capture profitable growth.
Network optimization: Optimize location, routing, and network scheduling to achieve sustainable cost reductions.
Operational improvements: Augment equipment, processes, and production sites to increase quality and efficiency through more efficient service offerings.
Services innovation: Design, test, and implement innovative new products, as well as modernize service delivery models to strengthen core capabilities.
Organizational redesign: Align structure and strategy to capture international revenue and profit pools while increasing flexible decision making in a fast-paced digital environment.
Digital and analytics: Better predict vessel arrival time and identify bunker-saving opportunities using proprietary tools.
M&A: Identify targets and support integration throughout the whole process.
Commercial excellence: Leverage digital and analytics to optimize pricing and go-to-market strategies that align commercial efforts to company strategy.
Examples of our work
Reducing costs
Optimized the distribution network for a pharmaceutical company by looking holistically at cost and effectiveness improvements from various scenarios, resulting in 22 percent reduction of transportation and warehousing costs.
Defining a 10-year operations strategy
Developed a cutting-edge operations strategy for a leading European postal player, doubling projected EBIT and identifying capex savings of around $500 million while keeping service standards at the same high levels.
Increasing network efficiency
Leveraged advanced sourcing at scale for a logistics provider with more than $1.5 billion of freight under-management, capturing network route efficiency that led to 7 percent value savings for the end-to-end supply chain.
Featured experts
Travis Fagan
Senior PartnerAustin
Advises travel, logistics, and infrastructure organizations on topics including operations-performance transformation, business...
Sal Arora
Senior PartnerAtlanta
Brings deep expertise in broad-based transformations for clients across the transportation and industrial sectors; global coleader...
Jan P Hartmann
PartnerCologne
Leads McKinsey’s work on manufacturing and supply chain, working with industrial and consumer companies to optimize end-to-end...
Florian Neuhaus
PartnerMunich
Advises major global logistics and rail companies on operations and strategies
John Murnane
Senior PartnerAtlanta
Creates large-scale transformation and growth programs for a range of companies around the globe
Sara Prince
Senior PartnerAtlanta
Helps clients reset and sustain new commercial capabilities to deliver step-change growth