Since 2015, we have undergone significant cost reduction efforts. Project Felix, Project Weatherproof and various other initiatives have over the years contributed to a significantly improved cost position. Similarly, Project Moneyball improved our port efficiency.
Still, and with the current low-cycle markets, our annual net profit is not sustainable in the longer term. As an example; in 2020 our net profit was only around 0,3% of our total revenue.
With the help of new data sources, systems, and digital solutions, it is now time to take a fresh look at areas for improvement – both from a cost and from an efficiency perspective. Our aim is that this effort will yield meaningful cost improvements and more efficient work processes.
The scope of the project is our shipping activities including some selected corporate support functions. The overall goal is to identify areas for cost and/or efficiency improvements. It is important to emphasize that this is not a headcount reduction project. We already have a lean organization. However, we do have a growing fleet and we need to make our work processes more efficient to manage this growth without significant and continuous headcount increases.
We have therefore identified the following workstreams for evaluation:
All workstreams have representatives from both Odfjell Tankers and Odfjell Ship Management. Team members from our offices abroad are also included. We believe this is important to be able to evaluate all aspects of our work processes.
Each workstream will have a workstream leader who, together with consultants from Cardo, will lead the work within their assigned workstream.
The project was officially launched on Monday, April 19. The timeline for the project’s first phase is 10 weeks. This implies that we will complete the evaluation part of the project by end June/early July 2021. Implementation of the identified improvement initiatives will start in August.
If there are questions or inputs to the project, feel free to contact Project Manager Fredrik Larsen.
