Contract Mail Service Provider

Client Overview: One of the nation’s largest independent providers of ground-based contract mail services for the United States Postal Service (USPS).

Opportunities/Challenges:

  • EBITDA and other key financial measures had decreased by over 30% in two years, the company was in technical default with lenders, and there was no access to additional capital
  • Experienced heavy growth through acquisition. Three commercial “off the shelf” (COS) systems were implemented, but never aligned to Company’s business processes. This lack of integration caused insurmountable training, change management, key quality and delivery issues
  • Cultural and union issues were contributing to the downward spiral and poor morale

Solutions:

  • Implement immediate turnaround actions in multiple areas
  • Assume leadership and control through assumption of the interim management positions of CEO and COO. Subsequently hired the Permanent CEO.
  • Conduct a “Rapid Process Analysis” by interviewing process owners and stakeholders, and analyzing business metrics, systems and processes
  • Develop an action plan to turnaround the company (done in two weeks, presented to the officers and lenders who approved for an active implementation)

Results:

  • Critical improvements in EBITDA were evident very quickly. This improvement generated lender confidence and continued funding of Company
  • Address of cultural and union issues combined with a thorough communications plan resulted in the decertification of the union at two terminals and immediate improvement in organization morale
  • Restructured the debt of the organization creating optimum working capital conditions
  • Realized annualized, tangible ROI of over $3M from operational process improvements and changes. In addition, cost avoidance from maintaining DOT compliance is in excess of $9M
  • Created a metrics scorecard for future management of the company

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