17 Nov Consultants Advise. Operators Execute.
I’ve lived logistics from both sides of the fence, as a buyer negotiating contracts and as a provider running companies with razor‑thin margins. That dual perspective taught me something most outsiders miss: the rules of this industry aren’t written in textbooks; they’re written in the trenches. And I helped write many of them. I know where the rocks at the bottom of the river are.
When external shocks hit—pandemics, port congestion, fuel spikes—we increased rates and applied targeted surcharges to protect margins and ensure operational continuity. Those increases were called “temporary.” But once they went in, they never came out. Customers didn’t push back. The industry moved in lockstep, invoices stayed opaque, and higher baselines became the new normal.
Take the fuel surcharge. Fuel often made up less than 10% of our costs, yet the surcharge was applied to the entire bill. That practice inflated margins far beyond the actual fuel expense. And because everyone did it, nobody questioned it.
Here’s the part most finance leaders miss: these “temporary” measures became structural resets. Margins improved not because we reinvented the business, but because we held onto the increases that events forced us to make.
This isn’t just logistics. Look at Starbucks. In 2022, the company appointed a CEO with a consulting background but no operator experience. On paper, he was brilliant. But running a global retail and supply chain machine is different from advising one. Labour unrest, operational complexity, and cultural disconnect eroded investor confidence. Market value fell by tens of billions before he stepped down after just 17 months.
The lesson is clear: leadership without operator grounding can destroy billions in value.
At Stone Management Partners, we’ve lived on both sides, as buyers and as operators. That perspective is what separates survival from collapse.
If you’re a CFO, investor, or board member evaluating a logistics business, ask yourself: Do you truly understand where the margins come from? If you don’t, you risk misreading the river entirely. And if you misread the river, you’ll never see the rocks until you hit them.
Operators know the river. Consultants know the map. Which one do you trust when billions are at stake…
John Scheel
Managing Partner, Stone Management Partners