In 2016, Purolator’s core business continued to strengthen with the introduction of service enhancements, technological innovation and improved processes with greater integration. These enhancements drove network and operational efficiencies while managing Purolator’s cost to serve. Through these initiatives, combined with a continued customer focus, the company reinforced its position as one of the leading freight, package and logistics solutions providers in Canada.
Revenue from operations
Revenue from operations decreased by one per cent in 2016 compared to 2015. This decrease was primarily driven by reduced fuel surcharge revenue, which was offset by increased courier and freight volumes.
Cost of operations
Labour costs were $759 million in 2016, an increase of $24 million, or 3.3 per cent, over 2015. This difference was mainly due to wage increases and increased volumes that were offset by productivity improvements.
Total non-labour expenses decreased by $50 million, or 6.8 per cent, compared to 2015, due to reduced costs for air transportation and information technology as well as lower selling, general and administrative expenses.
Outlook for 2017
In 2017, Purolator will continue to ensure its strategic initiatives and customized customer solutions align to evolving market needs. Building on its strong reputation and performance reliability, Purolator will also work to refine its route optimization, transportation management and mobility technology capabilities to deliver on its promises to customers. Together with the company’s relentless focus on enhancing the customer experience and its commitment to continuous improvement, Purolator will continue to deliver service excellence that is second to none.