Increasing competition and cost pressure created challenges. Reorganisation, improved planning and control, and optimisation of procurement improved profit with over EUR 17 million.
Background
Despite a dedicated workforce, overall profitability results were disappointing, mainly because of. significantly increased costs in general, combined with increasing competition.
The company decided to analyse and evaluate its overall organisational structure and operational processes, and engaged Mantec to help.
Analysis
In close cooperation with management at all levels, Mantec conducted a thorough analysis which indicated significant improvement potential in all departments. By involving the lower level managers an atmosphere of let’s do something about it spread, a positive attitude that was important for the implementation phase.
Implementation
The implementation phase of the project comprised six key areas:
Land Organisation; Redesign of organisational setup to focus more on profit and loss.
Commercial Ship Organisation; Upgrade of commercial focus from Route Hotel Manager to Commercial Head who is always on board. Reduction of management levels.
Route Closure; Analysis of current route footprint, resulting in the proposed closure of one route. Part of the project involved supporting the process to the pull-out date.
Pax Planning modules; Revitalisation of the forecast process and implementation of a Day of Departure tool which used data such as passenger numbers, passenger mix, and spending patterns.
Procurement; Analysis of spending to support the finding of future suppliers. Consolidation of catering suppliers. Reduction of on-board waste.
Management System; Implementation of a new operational management control system, both on ships and ashore. This improved the consistency of HQ management of routes and ships.
Results
In total, successful implementation of the project led to savings of over EUR 17 million:
- land and commercial ship re-organisation: EUR 3.5 million
- route closure: EUR 5.4 million
- from fixed to variable manning cost: EUR 5.6 million
- optimisation of procurement: EUR 1 million
- cross-organisational continuous improvements: EUR 2.1 million
