The container shipping industry’s ability to deliver cargo on time was 40% on average. Rethinking was necessary.
The ability of large container shipping company to deliver cargo on time was at 40% on average. This had an unfavourable effect on the clients’ supply chains and forced them to have large buffer stocks. Analysis showed that if certainty of delivery could be increased, it would not only reduce the client’s expenses in handling deviations, and increase their probability of hitting windows in the market, but also to a larger turnover and a reduction in costs. It was therefore decided to develop a new operational strategy to address the issue of On Time Delivery.
Ergo’s role was as advisor and sparring partner for the operations execution management of the shipping line. This meant introducing new thoughts into the organisation from related as well as totally different industries, to shape and structure the new ideas, to evaluate risk and possibilities in the developed scenarios and evaluate the commercial opportunities in the strategy.
The strategy is currently being implemented and increased turnover and reduced costs are already beginning to materialise. Ergo’s client has great confidence in the defining influence the new strategy will have on market position and profitability. The final proof will lie in the shipping line’s results in the coming years.
Lars Leth, Managing Partner
+45 5143 4895