01 / 07
Consulting · Operating Model Redesign
Meridian Freight
Rebuilding the operating model for scale: a diagnosis of where cost-to-serve broke down, the target model, and an 18-month transition roadmap.
M
Prepared for the CEO & Executive Committee · Board review, July 2026
02 / 07
The Diagnosis
Volume grew 9%. Cost-to-serve grew 34%. The model, not the market, is the problem.
- · Regional hubs each built their own dispatch and pricing logic — 14 hubs, 14 different playbooks, zero shared standard
- · Headcount in ops management grew 41% faster than shipment volume over three years
- · Decisions that should take a day (route exceptions, carrier overrides) take 6-9 days because approval sits four layers up
03 / 07
The Governing Thought
Stop scaling headcount with volume →
centralize planning, regionalize execution
One national planning engine sets pricing, routing, and carrier policy. Regional teams keep full authority to execute against it — no more re-deciding the same policy 14 times.
04 / 07
Three Paths We Modeled
Three ways to close the gap
A
Cut hub headcount
Fastest, lowest cost to execute — but strips capacity before the process debt is fixed; service risk in peak season
B
Full ERP replatform
Addresses the root cause — but 30+ months and $40M before any hub sees a change; too slow for this board's mandate
C
Centralize planning, keep execution local
Recommended: fixes the 14-playbook problem in 18 months, without a system replatform or frontline disruption
05 / 07
Priorities & Expected Impact
What Option C is worth
11%
Cost-to-serve reduction within 18 months, phased by hub cohort
2.4d
Exception approval time, down from 6-9 days once planning is centralized
7
Month payback on the transition investment, funded from cohort-1 savings
06 / 07
The Roadmap
Three phases, 18 months:
Stabilize (Q3) → Centralize (Q4-Q1) → Scale to all 14 hubs (Q2-Q4)
Cohort 1 (Northeast + Gulf, 4 hubs) goes live in October; remaining 10 hubs migrate in two waves once cohort-1 savings are confirmed.