Turned A Bleeding, Bloated 3PL Into A Tight, Profitable Operation.
OVERVIEW
RCS Logistics was a $20M 3PL running seven regional warehouses with 50,000 pallet positions and a wide customer mix, partially focused on CPG brands. The business was bleeding money, spinning in too many directions, and failing to control either contracts or operations.
Trigger for Intervention: A major haulage contract was haemorrhaging $1.25M annually, and warehousing inefficiencies were escalating into a total profit collapse.
THE CHALLENGE
RCS was overwhelmed — long-term contract losses, warehouse excess, and no strategic control.
- Contract haemorrhage — $1.25M annual loss from a flagship paper haulage agreement.
- Warehouse chaos — Damaged goods, inefficiencies, and underutilised space after peak season.
- Customer overload — Too many sectors, not enough profitable accounts.
- Leadership disarray — Bloated org chart and no operational ownership.
- No strategic core — Everyone was being served, but no one well.
THE APPROACH
Gary Newbury was engaged for a rapid diagnostic review. Within days, Gary was handed the reins as Interim COO to deliver a full-scale performance rescue.
- Diagnostic blitz — One-week immersion across cost base, warehouses, and client data.
- Margin exposure — Pinpointed the bleed: labour inefficiencies, routing issues, and system inefficiencies.
- Ops immersion — Partnered with frontline managers to drive insight and urgency.
- Board reframe — Delivered a bold but practical turnaround plan.
- Leadership reset — Stepped into COO seat and imposed commercial and executional discipline.
THE SOLUTION
Execution began immediately — contract, customer, capacity, and team structure were all overhauled.
- Contract rebuild — Re-engineered haulage routing, doubled pricing, and restored lane control.
- Warehouse consolidation — Closed four remote sites, optimised layout, cut footprint cost.
- Client exit strategy — Dropped unprofitable customers and clarified service model (Day1/Day3).
- System fixes — Introduced SOPs to repair bin logic, reduce pick errors and damages.
- Org redesign — Removed non-performers and flattened the structure for speed.
Profit doesn’t come from being busy. It comes from having the guts to stop doing unproductive tasks.
THE OUTCOMES
Within six months, the operation was back in control — leaner, sharper, and profitable.
- $1.25M contract swing — Turned a loss-making contract into a margin leader.
- $1M in ops savings — Closed sites and aligned headcount to real volume.
- Inventory precision — Pick accuracy up, claims and rework down.
- Core focus restored — Commercial reset to serve a tight set of high-value sectors.
- Cultural reboot — From reactive firefighting to repeatable operational control.
WHY IT MATTERS
This wasn’t a course correction — it was a full operating model reset, delivered under pressure.
- Timing was critical — The turnaround had to begin immediately, not next quarter.
- Capability was rebuilt — Not papered over but restored inside the business.
- Strategy became real — Focus, fit, and future readiness locked into place.
CLIENT TESTIMONIAL
“Gary provided excellent support, reviewing our situation, making far-reaching recommendations, and helping us implement them with speed. His hands-on, practical approach was crucial to reshaping our management, re-engineering our operations, and restoring profitability. He doesn’t act like a consultant. He works alongside teams like a true operator with credibility, clarity, and executional know-how.”
— Simon Smith, Executive Chairman, RCS Logistics