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Implementing PLM at a Major Shipping Company

Overview

The Global Shipping Corp, a leading shipping company with over 50,000 employees operating in 150 countries, faced significant operational challenges. The company was grappling with high operational costs, fragmented processes, and a lack of real-time data integration across its global operations. These issues led to delays in communication, inefficiencies in resource allocation, and compliance difficulties with international regulations. To address these challenges, the company sought a comprehensive solution through the implementation of Product Lifecycle Management (PLM), aiming to streamline its processes, enhance operational efficiency, and reduce overall costs. By adopting PLM, Global Shipping Corp aimed to unify its operations and drive significant improvements in both cost reduction and process optimization.

Our Role

As strategy consultants, our primary role was to guide Global Shipping Corp through the successful implementation of a PLM system. We provided a holistic roadmap that included the assessment of current operations, selection of the right PLM software, integration with existing systems, and comprehensive change management strategies. Our team led the transformation from the planning stage through to full execution, focusing on maximizing the benefits of PLM, ensuring minimal disruption to ongoing operations, and achieving long-term success.

 

Key actions:

 

  • Conducted a full audit of the company’s processes.
  • Led vendor selection and facilitated negotiations for the PLM system.
  • Managed cross-functional teams to integrate the PLM with existing ERP and SCM systems.
  • Delivered a company-wide training program to promote adoption and address resistance to change.

Key Objectives

The key objectives of the PLM implementation were:

 

  • Reduce Operational Costs: Eliminate redundant processes, streamline workflows, and optimize resource allocation to achieve significant cost reductions.
  • Increase Efficiency: Improve process efficiency by 15% through enhanced coordination, automation, and the elimination of bottlenecks.
  • Improve Compliance and Risk Management: Ensure adherence to international shipping regulations by integrating compliance management into the PLM system and reducing the risk of fines or delays.
  • Enhance Collaboration and Communication: Facilitate better communication and data-sharing across global teams, improving decision-making and reducing delays.

Challenges

During the implementation process, several challenges arose:

 

  • Resistance to Change: Many employees, especially those in senior roles, were resistant to adopting new systems and processes. A lack of familiarity with PLM systems created hesitation and concern about productivity disruptions.
  • Complex System Integration: Integrating the PLM software with existing ERP and SCM systems proved complex, requiring careful customization to fit the unique operational needs of the company.
  • Global Rollout: Ensuring consistent implementation and training across multiple global regions was logistically difficult due to time zones, varying regulatory environments, and different languages.
  • Compliance Variations: Shipping regulations varied across different regions, making it essential to customize the PLM system to meet local regulatory standards without compromising global operations.

Results

The implementation of the PLM system at Global Shipping Corp delivered significant results:

 

  • 20% Reduction in Operational Costs: By streamlining workflows and eliminating redundancies, Global Shipping Corp was able to reduce operational costs by 20%. These savings were achieved through more efficient resource allocation and automation of manual processes.
  • 15% Increase in Efficiency: The PLM system improved overall process efficiency by 15%, largely by enabling real-time data access, better communication between departments, and faster decision-making.
  • Enhanced Compliance and Risk Management: The integrated compliance management features of the PLM system improved adherence to international regulations, reducing the risk of fines and operational delays. The company was able to minimize disruptions in its supply chain by identifying risks early and addressing them proactively.
  • Improved Collaboration and Communication: Teams across different regions were able to collaborate more effectively, thanks to the centralized data repository and real-time access provided by the PLM system. This improvement led to faster response times and more coordinated efforts.

 

Through our role as strategic consultants, Global Shipping Corp successfully implemented PLM, achieving significant cost savings, improved operational efficiency, and enhanced regulatory compliance across its global operations.

Customer Testimonial

Thanks to our consulting partner’s expertise, the PLM implementation has transformed our operations at Global Shipping Corp. OILIFINA’s strategic guidance helped us streamline processes, reduce costs by 20%, and improve efficiency by 15%. The transition was smooth, and their tailored approach ensured that we overcame challenges with ease. We’re now operating more efficiently and fully compliant with global regulations.” — COO, Global Shipping Corp