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Our client in this case was a leading European ferry operator operating in four sectors and a subsidiary of one of the worlds largest logistics and transportation companies involving container shipping, ferry operations, ground transportation, logistics and port operations. At the time of the project, total revenues amounted to £ 637 million and operating profits (EBIT) to £ 14 million.
Client issues
Overall market developments, including the abolition of Duty Free onboard sales, the rise of the low-cost airline industry, opening of the Channel Tunnel and fierce competition, were causing high pressure on revenue and margins in the ferry business. As a result our client had identified the need for continuous rationalisation to establish a lean and mean organisation and processes.
NNC contribution
NNC was asked to:
- Identify a package of efficiency improvement opportunities to increase efficiency in port operations and reduce total Port Operations costs by at least 10%
- Provide project support in identifying, assessing and initiating efficiency improvement opportunities in the operational processes related to passenger and freight handling on the quay in the ports of Dover and Calais
- Determine the financial and social impact of these improvement opportunities
Results
- NNC performed a thorough assessment of individual improvement opportunities that were short listed and, after interdependencies were identified, translated into a coherent, dynamic financial model.
- Furthermore an integrated package of efficiency improvement opportunities was defined for each port and translated into an actionable implementation plan.
- As a result NNC was able to identify a consolidated annual net saving of 25%, thereby exceeding by far the 10% identified at the start of the project. Furthermore, opportunities in adjacent business areas were identified that could further improve the overall saving potential.
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