Location: Major commercial ports in Mexico
Industry: Logistics
Type of company: Private
Services provided: Port Maneuvers (loading and unloading ships), storage of containers and cargo, cargo services
Technology used: ALG Metify (now SAP PCM)
Partner: BINTECH

Challenges and Opportunities

  • Maximum rates authorized by the Secretariat of Communications and Transportation. There was pressure to reduce rates without losing profitability. The purpose of the reduction was to increase market participation.
  • Lack of a system of Strategic Cost Management that would identify the cost for maneuver, and to service the customer requirements

Objectives

  • To create the cost management model to incorporate it into the planning process, based on the indicators.
  • To enable the Metify (now SAP PCM) platform.

Implementation detail

  • Development of a financial model based on IDEF and CAM-I standards for cost management.
  • Delivery of the project in 16 weeks.
  • Focus on measuring and managing processes by:
  • Cost for maneuver
  • Cost for serving each customer.
  • Costs for special services (example: Container repair).

Why Bintech?

  • Experience (Participation in the Center of Excellence of Activity Based Planning).
  • Proven methodology.
  • Knowledge of the logistics sector.

Benefits

  • Transfer costs and prices of the transportation services.
  • Planning based on results only in the operational processes.
  • Cost reduction by USD XX million in 2004.