The importance of commercial operating partners in transport and logistics

Commercial strategists are becoming increasingly influential for private equity firms looking  to scale, including in the transport and logistics space, writes Gov Kandola

In private equity (PE), operational expertise has long been a key factor for firms looking to  maximise returns. Traditionally, this has meant employing people with CEO or CFO experience,  as well as generalist business leaders, as operating partners – professionals capable of  optimising processes, reducing costs, and driving transformation. However, with markets  becoming increasingly competitive, and value creation increasingly dependent on top-line  growth, a new kind of operating partner is emerging: the commercial strategist. 

The evolving responsibilities of the commercial partner are especially pronounced in complex  industries such as transport and logistics, where PE has become a major force behind  consolidation, digitisation, and international expansion. From mid-market freight brokers to  global cold-chain operators, businesses in the space now face commercial challenges that  require more than operational acumen. But just what do funds centring around this market  require from commercial partners?

Valuable experience

First, I wanted to consider what this new breed of operating partner or senior advisor typically  brings to the table. Number one is significant commercial leadership experience; they might have  backgrounds as chief commercial or revenue officers, as well as heads of sales, pricing, or  marketing. Value creation today is revenue-heavy, and funds that fail to develop and switch up  their operating models risk missing out on key opportunities for growth across their portfolio. 

The need for commercial expertise has arisen from the changing nature of the CCO role. Today’s CCOs are no longer focused purely on sales; increasingly, they must oversee marketing, revenue  operations, pricing, customer experience, and even data analytics. These disciplines are  consolidated under a single commercial function in many organisations, and while this structure  offers tremendous dynamic potential, it also carries significant risk. When commercial  operations underperform, it puts the entire value creation plan in jeopardy – especially in sectors  with thin margins and/or aggressive growth targets. Nonetheless, often PE firms lack the internal  commercial expertise necessary to guide, challenge, and support CCOs. 

Challenges and opportunities for operating partners

One commercial leader I spoke to (who prefers to remain anonymous) noted that at least as far  as the logistics space is concerned, it is still rare to see the CCO involved in M&A processes  guided by PE funds. ‘It’s still very traditionally run by finance, legal, operations, or P&L roles,’ he  said. ‘The role of the CCO is often seen as a “support function” to product and operations units,  hence not at the table – especially in freight forwarding.’ This individual added that the CCO is  seldom a board role among major forwarders in the market, something that tells its own story. ‘In  a world where differentiation in CX and customer service will win the future, I am a firm believer  that this needs to change,’ he concluded.

Indeed, commercial expertise at fund level can help prevent misdiagnoses when performance  dips. Heather Passe, an experienced Fortune 500 commercial leader who advises organisations on growth strategy, told me that the rise in PE  funds looking for former CCOs addresses ‘a common pain point: underwhelming revenue growth  from portfolio companies.'

While existing operating partners often bring deep finance or operations expertise, they typically  lack a commercial lens. This leaves a gap in areas like go-to-market strategy, product launches,  pricing, and digital transformation. The commercial function has grown more complex, requiring  a nuanced understanding of how product, sales, marketing, and customer engagement work  together to drive revenue. As a result, CCOs are now being seen as valuable sounding boards for  CEOs and commercial leads within portfolio companies. 

Without the guidance and overview of someone who has sat in the commercial seat, it can be  hard to tell whether downturns are related to the sales team, poor market positioning, misaligned  pricing, or any number of other explanations. Nonetheless, investment success so often hinges  on answering these questions early and accurately. 

Areas of interest

Previously, PE value creation in transport and logistics relied on cost reduction and supply chain  efficiency: levers that still matter, although there are various other factors that can also make a difference  nowadays. Currently, the real changemakers that commercial strategists need to consider – and  which fall under their remit – include new market entry, pricing optimisation, digital lead  generation, salesforce effectiveness, and channel strategy, to name a few. Without a dedicated,  specialist commercial operating partner, PE funds often need to rely on the company CCO to  diagnose problems and find solutions alone, which limits the organisation’s capacity to intervene  early or change course.

In transport and logistics these days, value creation increasingly comes via commercial  channels. Pricing strategy is shifting from fixed contracts to dynamic models. Key account  management, digital marketing, and customer retention are central to success – so expecting a  newly hired and/or overstretched CCO to direct these pillars alone is risky. Funds require  experienced commercial minds to coach, challenge, and build alongside the management team:  not merely to react when growth stalls. 

Seeing the bigger picture 

So, what’s to stop PE funds from simply bringing in commercial talent? Therein lies another issue. With  performance so often shaped by a mix of market conditions, team structure, incentives, and the  tools at their disposal, it is typically harder to benchmark leaders in sales and marketing than it is  for finance and operations. Having someone at the fund level who has experience leading go-to market transformation, owning a P&L sheet, and building commercial teams can be the  difference between success and stagnation. These individuals are typically better positioned to  assess leadership, pressure-test commercial plans, and consider dashboards beyond surface level KPIs.

Commercial expertise does not merely add value when things go wrong, however: it adds value  across the entire deal lifecycle. From due diligence beforehand to 100-day planning and all the way to exit preparation, commercial operating partners can assess the market, evaluate pricing  integrity, benchmark talent, and help management teams to build revenue at scale. Their impact  should be less episodic than continuous and integrated.

In the past, logistics companies would typically grow via a combination of strong relationships  and operational efficiency. That model, however, is no longer sufficient. In today’s market,  transport and logistics CCOs need to manage contract and spot sales, dynamic pricing,  customer segmentation, CRM, and even digital marketing – all in an industry that, traditionally,  has been largely offline. Nonetheless, funds increasingly cannot afford any shortfalls in how they  approach such areas, as underperforming commercial functions can trip up verticals that are  light in assets and require high specialisation to operate, such as cold chain, pharma logistics, or  last-mile e-commerce.

A further complication is that revenue growth in logistics is no longer driven purely by volume.  Now, portfolio companies are expected to win higher-margin contracts, diversify their customer  base, build robust brands, and monetise operational data. These initiatives require a level of  commercial sophistication that is rarely found in traditional operating partner models, where  most talent has backgrounds in finance, operations, or general management.

Market developments

So, does all this mean that PE firms need to place a full-time commercial operating partner in  every deal? Not necessarily – many funds are now pursuing flexible models. These include part time senior advisors with commercial backgrounds, interim CCOs deployed during  transformation phases, ‘shadow’ commercial advisors working alongside in-house teams, and  specialist networks ready for rapid deployment in pricing or segmentation challenges. A lean yet  focused approach allows firms to bring in reinforcements where and when they need them most. 

Mid-market and growth equity funds have been particularly active in taking on commercial  advisors and operating partners. Firms like TA Associates, Bridgepoint, Advent, Hg, and Inflexion  have brought on professionals with revenue leadership experience, as well as sector-specific  expertise in areas like SaaS, healthcare, and logistics. Whether these advisors serve as board  members, operating partners, or consultants, they bring hands-on knowledge of building  scalable, data-driven, and resilient commercial organisations. 

Final thoughts 

The case for commercial expertise is clear in a market where more companies are missing  revenue targets in spite of their strong products or operational excellence. CCOs’ scope and  influence have grown dramatically – it’s time the support around them grew as well. The next  generation of operating partners are not just looking to optimise cost, but to unlock growth – something that will yield the greatest returns. 

I am always interested to hear from private equity funds looking to maximise their commercial  and operational potential in the transport and logistics space, and from commercial leaders  themselves interested in working with funds. Be sure to reach out if you would like to find out  more!

Special thanks to Heather Passe and our anonymous commercial leader for sharing such valuable insights.