Strategic Procurement: Cost Reduction and Increased Operational Availability

Challenges

  • Low operational availability fleet, low reliability performance
  • Low margin environment
  • A need for 20% cost reduction, no historic MTBO insight
  • High operational cost compared with peer group
  • Started asset management process implementation without historic data & future view on performance
  • High stock level, large number of SKU’s, slow moving stock.

Solution

  • Benchmark Study on Value Gaps
  • Transformation to Strategic Procurement (Phase I)
    • Historic Performances Assessment
    • Future Needs/Aspirations
    • Market Analysis
    • Contract Portfolio/Organisation Strategy
    • Prepare/Recommend Organisational Model
    • Execute Process Improvement Plan
    • Prepare/Recommend Contracting Strategy.

Benefits

  • Kick-started asset management process implementation payback, risk based maintenance/turnarounds
  • Significant maintenance cost, capital employed, moribund stock, suppliers reduction
  • Increased vessel operational availability, increased warehouse capacity availability
  • Developed buyers into supply relationship managers with a fit for purpose procurement approach.

Shipowner with a diverse fleet in age & origin of about 60 seagoing vessels.

IACCM Infographic