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Insights · Case study
A multi-regional freight and logistics operator North America 14 months Strategy & Operations Moving to Raleigh

Redesigning a freight network around the lanes that actually pay

A top-ten regional carrier was growing revenue and shrinking margin. We rebuilt the network around lane-level economics — and stayed through two quarters of execution to prove the new model in the P&L.

+310 bps
operating-margin improvement, audited across the following two fiscal quarters
22%
of the lane portfolio repriced or exited within nine months
2 of 31
terminals consolidated — far fewer than the initial board hypothesis, because the model showed the problem was pricing, not footprint
0
members of the frontline dispatch leadership lost during the change

The situation

Two decades of customer-by-customer growth had produced a network nobody had designed: 40% of lanes were unprofitable on a fully-loaded basis, but the reporting stack — built around regional totals — couldn't see it. Volume incentives were pushing the sales organization toward exactly the freight the network handled worst.

What we did

A joint team of one Fresnaye partner, two principals, and the client's own pricing and operations leads built a lane-level economic model from raw movement data, then redesigned the terminal footprint, pricing floors, and sales incentives around it. No recommendation entered the deck until operations had confirmed it survived a Tuesday-morning dispatch meeting.

How we measured it

Margin was audited in the P&L across the two fiscal quarters after the redesign, not estimated at the end of the engagement. Lanes repriced or exited were counted against the lane model itself, and frontline dispatch leadership was tracked by name through the change.

“The lane model ended four years of argument in one meeting. Everyone was suddenly looking at the same number.”
— Chief Operating Officer

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