With all the obstacles that shipping companies have to navigate around during this challenging period of time, it is definitely a circumstance where we should have “all hands on deck”, especially when you are trying to achieve cost savings in this foggy environment.

When steering an organization through a demanding journey of financial adjustments, it is a prudent move to call upon all available resources both internal, as well as external, to address this important endeavor. As you map out improvement opportunities and prioritize their importance in your quest to achieve cost savings, it is crucial to have a detailed plan in place to specify all the necessary steps to take to achieve the ultimate cost saving goals. A competent internal team or qualified external organization, who could spearhead this effort, would be key and meaningful resources which could be utilized collectively or separately on this odyssey.
As the long journey of subscribing to potential improvement opportunities starts, it is common practice for plans to incorporate some consideration of the more basic improvement initiatives, such as, cost optimization, centralization, simplification of organization, outsourcing, automation, integration of systems, etc. It is also a prudent practice for organizations to articulate their intentions to develop and implement, such cost savings initiatives. Transparent communication of an organization’s efforts to achieve cost savings to its employees and the wider business community usually expresses an organization’s commitment to address an integral issue of their operation and it assists in clarifying expectations of potential company actions regarding this important topic. As it pertains to the area of cost savings, it is better to be proactive than reactive when developing, implementing or communicating your plan.
Due to the prudent need for in-depth knowledge, extensive experience and qualified support, as well the sensitive nature of the work, many companies choose to engage external organizations to assist in their cost saving quest. Although there might eventually be some negative ramifications in implementing the measures, they must be weighed against the positive consequences that might also be derived, such as providing a life line to keep the company afloat. The challenges these days remind me of a quote that I believe was attributed to the well–known ship owner, Aristotle Onassis, “We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds”. These are demanding times not only for the shipping industry, but for the world at large. If there was a period of time when we should have “all hands on deck”, this would be it…
* Senior Manager, Clients and Markets, KPMG