Ensuring Transport, Postal and Warehousing industry players tick all the boxes
The transport, postal and warehousing industry provides important services which support individuals, businesses and organisations carrying out their everyday activities, yet there are significant changes afoot for many of its sectors.
With vehicle electrification, the use of drones and the emergence of dominate players such as Amazon, the landscape is changing rapidly. Technological changes coupled with the supply chain shock instigated by COVID-19 and international trade tensions; further industry volatility is likely to continue in the short term.
At Fortitude, we work with businesses in every sector of the Transport, Postal and Warehousing industry, bringing our wealth of knowledge and extensive experience to help you achieve the wealth, security and lifestyle you seek.
Case study: A little risk analysis may avert disaster in the transport, postal and warehousing industry
A large interstate road transport business had borrowed significantly and was using spreadsheets for financial forecasting and actual-versus-budgeted performance assessments.
Given the industry’s nature and level of gearing, the bank closely monitored the business’ financial performance and held a number of covenants to protect their position.
Spreadsheet errors were discovered during the bank’s quarterly review that, when corrected, painted a far more challenging picture of the business’ outlook – unmanaged issues within operations had resulted in lost profits.
The bank lost faith in the business’ management and potential risk exposure, so it:
Increased the interest rate charges
Limited access to funding
Imposed stricter conditions for management and reporting requirements.
How we helped
We Implemented dedicated three-way forecasting software and robust budget-versus actual analysis to properly manage the business and risk. Had this inexpensive software been adopted initially, it would have averted much of the cost and damage to the business.
Spreadsheet errors are common, and a poor choice of financial modelling software allowed them to go undetected and unmanaged. This significantly affected the business’ profits, access to finance, and the cost of borrowing.
Choosing the wrong software is a foreseeable risk that should have been identified, prioritised, proactively treated and monitored earlier. Not doing so leads to a substantial impact on the business’s ability to meet its objectives.