The Ops. Doctor is a program that can increase a carrier's bottom line while improving its equipment utilization and overall efficiency. Carriers desire to improve their gross margins but may not recognize the overlooked actions necessary to effect substantive improvement. The old adage states "keep doing what you are doing and you will keep getting what you are getting"
The key to major increases in gross margin is the ability to change procedures, policies and perhaps people. People, especially employees, are often uncomfortable with change and will resist attempts to alter their routines at work. Employees organize their day and develop habits to make their work go easier and more predictable. Adhering to long held policies and procedures can feel more secure than challenging the current system with new ideas and concepts. Technology is continuously improving and evolving market conditions necessitate that we change or fall behind competitors that are advancing.
Workers may have opinions or perform in a manner that differs or contradicts the objectives set forth by upper management. They may honestly believe and/or give the impression they are doing a good job when, in effect, they are actually being counterproductive.
In order for owners and senior management to take action to improve gross margins they must be aware of and recognize the obstacles impeding their progress to greater profitability. No one can correct a problem they do not know exists. Relying on internal company analysis may not improve gross margins or it would have already done so. Dept. Managers and supervisors are often reluctant to draw attention to problems or personnel for which they may be held accountable. They may not inform senior management and may even "protect their people" or policies from scrutiny.
A company's financial records are verified by an outside accounting firm in order to ensure correctness and give credibility to their financial statements and tax filings. Insurance and Safety receive regular audits. The Operations Dept. is responsible for nearly 100% of Accounts Receivable and over 60% of Account Payable (Driver Pay). Who audits the Ops. Dept.?
As individuals, we submit ourselves for routine medical examinations. Not because we are ill, but because we need an expert to look for underlying problems that give us no physical discomfort but can, in time, make us seriously ill or kill us.
The Ops. Doctor can do an in depth audit and analysis of a carrier's Operations, including reviewing actual shipment data, procedures and policies. An onsite assessment of Ops. Personnel, their performance and how they interact as a team can reveal areas for improvement. A comprehensive plan of action will be presented and explained in detail as to how and where action should be taken to improve gross margins. Examples of actual shipments will be shown as how they were handled, compared to how they could have been handled with greater gross margin.