During 2014, InduStreams worked with a top 10 shipping line, providing expert knowledge and advisory on fast tracking necessary actions to increase competitiveness.
The industry is one of alliances, cost reductions and service improvements – off-hand conflicting yet needed to remain in business. This calls for radical changes, however executed without disrupting service delivery to customers.
In pursuit of this, vehicles that are becoming a minimum requirement of the industry are:
- Simplification and improvement of processes
- Off-shoring of transactional tasks to low cost locations.
The combination of these holds significant potential for all lines not already operating at a high level with simplified LEAN processes and off-shored work. While executing it successfully leaves many lines in years of turmoil, struggling with:
- Simplification of processes before or after off-shoring? What sequence is optimal?
- What processes are targeted first, for highest value immediately?
- What organizational project model is right to ensure processes are made optimally across functions?
- How do we engage people in process optimization while it will lead to a leaner organization?
- Which tasks and processes can be off-shored, and which needs to stay?
- What is the optimal organizational model following off-shoring? Country based, regional or a combination?
- How to setup meaningful roles in the standing organization and off-shored, and how to integrate these?
- How to setup processes and work-flows across borders and functions while retaining the right degree of governance and accountability?
- Creating a strong culture post standardization and off-shoring, across the new organizations?
While doing it right carries high potential impact on the bottom-line, it is same time high risk – with many suffering a year long journey of a disengaged organization, loss of talents, sub-optimal processes, frustrated customers and slow realization of benefits.
We believe most large organizations have the manpower and skill to execute change, so from InduStream side we do not deploy a large team. Improvement change needs to be implemented by people that holds internal credibility, not external consultants.
But having been instrumental in these improvements in Maersk Line’s journey and later other shipping lines and terminals, we can advise effectively on how to go about it.
In this specific case of a top 10 shipping line, the outset was the current state of organizational and process maturity, in close alignment with the overall company strategy.
We worked cross functionally with the project- and standing organization from scoping, creation of quantifiable cases that took a holistic business perspective, solutions and hands-on implementation.
Throughout this, the customer was the Captain, and InduStreams the Chief Officer – and implementation was carried out by the customer, with our advisory and sparring on the side.
The outcome was positive and radical improvement created from the inside, by the customer – made possible by solutions that had been put in place by the organization to realize cost savings and service improvements in the years to come.