The Extra Mile Podcast by CarrierDirect: Why Logistics Matters with Guest: Ryan Schreiber
In this first official episode, Bain and Ryan chat about why logistics matters and the intersection of consulting and logistics.
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Show Notes
Managed transportation is sticky. Customers don’t churn very much. It has a lower margin but it’s predictable business. With this acquisition, it’s now something Uber doesn't have to go out and build itself.
The integration of these two businesses' tech and people will be key to their future success.
Bain predicts we haven’t seen the last of these big M&A deals.
When does it make sense to bring in experts for different projects?
You have to consider both sides: We start by discussing when it's NOT a good idea to hire a consulting firm to help your freight business.
It starts with openness and curiosity. If you think you have it all figured out, it doesn’t make sense to bring in outside help. It’s not going to be a happy working relationship for anybody if you think you have all the answers.
Even if you recognize things could be different and better, but you just want an easy button, that’s also a mindset that won’t work well with outside experts. You have to be open and curious, and you also have to be part of the process.
Businesses that benefit the most from partnering with consulting firms are the clients who understand that their business could be better than it is today, but they’re not really sure where or why. They usually have a hypothesis, but they want help figuring it out.
Another great example of when it is beneficial to bring in outside experts is if you have an idea for the future of your business and you need help codifying it and then implementing it. Whether that’s a technology idea, an operating model idea, what have you, those are really the situations where it makes a difference to have people come in and help you with your business.
Bain shares a helpful analogy where he compares the small things in logistics to the small things in weightlifting: Little things that matter and make a difference when you add them all up.
Logistics is complicated. One of the main things missing in transportation and logistics is predictability.
We learn about Ryan's start in this industry, and Bain shares gratitude that Ryan took this road rather than becoming a lawyer!
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