Location: Major commercial ports in Mexico
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)
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
- 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.
- 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).
- Experience (Participation in the Center of Excellence of Activity Based Planning).
- Proven methodology.
- Knowledge of the logistics sector.
- 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.