GLOG – King of Prussia, PA, USA
Global Logistics Technology was a VC-backed logistics software company (Mayfield, Pilgrim Baxter, Focus group amongst others) with an innovative web-based platform that enabled companies to manage orders and to plan and optimise shipping routes. However, it had burned through most of the cash raised in several financing rounds and was in danger of folding.
First a review was undertaken and a 40-point action plan drawn up, including re-setting the operations and market segmentation strategy. Cairns was then appointed CEO and was instrumental in turning around the company’s performance, stemming the drain on its cash, and resolving internal management conflict and serious morale issues. The business was re-organized into three profit centres, a cost reduction plan was implemented, some changes were made to the management team, a stronger financial planning and control system was introduced and the flagship Sears account was won along with Toll in Australia and Exel in the UK, as well as several mid-tier 3PLs. After re-energising the organisation and dramatically elevating self-belief and morale, without raising additional capital, the company was grown to 200 people, generating profitable revenue of $40m with positive cash flow. Cairns then led the sale process, intermediating between shareholders to reach agreement, then personally negotiating a sale at >2x revenue to Oracle.