Strategic Planning Model Development

Client:

Purolator Courier

Challenge:
Purolator Courier, Ltd. is Canada’s largest courier company and delivers manufactured goods and documents to more than 220 countries worldwide. Each year, the Strategy and Corporate Development (SCD) group within Purolator is responsible for developing the company’s long-term plan. SCD's existing planning model was outdated, lacked documentation, and did not capture the true drivers of cost and revenue, which limited its forecasting power. Purolator hired FI Consulting to build a new strategic planning model for the current year’s planning process.

FI Solution:

FI performed lifecycle model development activities including requirements development, model design and specification, testing, documentation, execution, and training. Our team expedited the process by working onsite with clients to leverage their institutional knowledge of business drivers. To ensure a transparent model structure, we followed our standard modular approach, separating model components by function and allowing a consistent flow of inputs to results. The final, tested model comprised fully linked financial statements, including captured impacts of capital budgeting and financing decisions. To mitigate key person dependency, we provided detailed model documentation.

FI Impact:

The new strategic planning model reduced process complexity and increased transparency. The model’s capital budgeting module for new initiatives met the needs of two client groups. Most importantly, the new methodology is aligned with a driver-based approach, which makes model updates easier and model results more understandable and defendable.