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    George Saris, President
    Atlas Ship Chandlers

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    Crowley Maritime

  • "Encouraging our suppliers to adopt the e-commerce platform has been well worth the effort. We have reaped significant cost savings from streamlining our purchasing processes."

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    Keppel Shipyard

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6 April 2009

Don’t cut out meals, cut out inefficiencies.

I read with interest a recent article in Ship Management International (sourced from MaritimeDanmark.dk). Danish officers believe that shipping companies are cutting expenses so much at the moment that it makes the sailors’ life a misery. According to Fritz Ganzhorn, Secretariat Manager of the Danish Maritime Officers Union, “The sailors understand that the shipping companies have to save money, but they do not like it when provision of daily needs such as meals are cut.”

This is a typical response to tough times – cut out what you know and can put a saving on. Unfortunately though for many shipping companies there’s a whole host of other costs they just don’t know they incur. These unseen costs go unmonitored and unrecognized and can often represent the quickest way to save money (without having to annoy staff).

This has been our life for the last ten years. Spending our time introducing a solution to a problem most shipping companies just didn’t know existed. That problem exists in the purchasing department – where manual procedures, high administrative overheads and lack of visibility means shipping companies are typically wasting up to 20% of their ship operating costs. Which for a fleet of 20 vessels can be as much as $2.4m each and every year.

How do we know this? Well, we’ve worked with over 130 major ship owners, managers and yards who have gone on to save this money. We’d love to share this with you, if you’re interested. We also think its a much more prudent way to save money than risk jeopardising the goodwill of your staff.

3 Responses to “Don’t cut out meals, cut out inefficiencies.”

  1. JerryEker Says:

    I would like to hear more about cutting inefficiencies.

    Best regards,
    Jerry

  2. Franklin Bezerra Says:

    Would love to learn more on actual examples where the inefficiency was cut out if you have specific cases to be sure pls be kind to forward to us.

    Franklin Bezerra
    Maersk Brazil

  3. johnwatton Says:

    Jerry/Franklin,

    Thanks for your interest in finding out more. I’ve passed your details on to your respective Account Manager and they should be in touch.

    Any further questions, email me at jwatton@shipserv.com

    John Watton

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