Conversion Strategies in the transport sector

ROD Transport joins ROD Corporate, ROD Private Equity, ROD Retail, and ROD Chains to form a wavelength on getting the most desirable judgment on a profitable conversion. The transport industry is continuously evolving, the supply chain policies and distribution methodologies are growing and improving to generate more added value to the entire process. Losing sight of this fact can have a tremendous impact on the ever-growing process to be established if the company is to survive. A traditional commercial airline is often transformed into an all-inclusive air-cargo company or vice versa, logistics actors looking to reduce capital costs, and streamline transport infrastructure and delivery flows are prone to stay competitive and achieve the best performance. Such instances have to be taken seriously, through insightful planning, and rigorous management, different scenarios can be identified for future repurposing.

Supply Chain cross-functional specialist

Rodschinson Transport team has a long track record of repurposing transport assets to anticipate and embrace the new trends, and further the growth performance to the next level. The team follows a methodical approach that combines a relevant and updated understanding of the supply chain as a whole value chain, market economic insights, and new strategic policies to refine future scenarios, and recommend the optimal transformation for its client assets.

To this end, from the earliest stages of building a logistics project, Rod Transport emphasizes to construct flexible strategies to be able to conduct smooth transformations and adapt to the market.

Some examples of successful conversion strategies in adverse situations include

A public transportation unit

Following a crucial increase in need of staying indoors during the pandemic, due to the high obsolescence rate of the public transport, and low business turnover, public transportation was repurposed to transport utilities and became retail points to those in need of essential supplies. The company has gained in terms of added value operations and improved its economy of scale by outsourcing inventory management to an external distribution center.

Dropping people to delivering essentials

Ride-hailing companies have pivoted as drivers shift from moving people to delivering food and products. As people stay home and can’t go out, they will be demanding more of their e-commerce and local food venues to deliver. Repurposing vehicles to be used as delivery service vehicles has also become commonplace among shared mobility providers

Logistics company business model

To increase the usability and the ROI due to low demand, oversized logistics company, and their business model has been repurposed to serve as a 3rd and 4th party operator, providing tailored services to several customers, the company has gained the best turnover rate, and improved its cash flow.

Rodschinson's team of real estate experts

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