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CLIENT CASE STUDY


Shekou Container Terminals cost management system

Accenture helps implement a cost management system for Shekou Container Terminals, one of China's leading ports operators.

Overview

Accenture implemented a logistics management solution to help Shekou Container Terminals devise a new cost structure for monitoring and controlling processes and achieving a double-digit cost reduction.

With the new cost management system and processes in place, Shekou Container Terminals can attain remarkable results critical to compete successfully in today’s port environment.

Most importantly, the client now has the foundation needed to improve its cost structure continuously—not just for one-off cost cuts.

Opportunity
Due to the economic crisis, China’s ports have experienced a record decline in global container traffic. Since competition between ports has intensified, cost management has become a key factor for Shekou Container Terminal’s performance improvement and sustainable development.

Shekou Container Terminals implemented Accenture’s logistics management solution to help improve cost structure and governance capability and enhance performance management.

Solution

Shekou Container Terminals worked closely with Accenture to improve its cost management and governance capability and enhance performance management by:

  • Defining the cost ownership structure and cost key performance indicators (KPIs).

  • Designing a cost management dashboard to report cost monitoring, tracking and control.

  • Implementing the cost management system with the client’s IT department by customizing Accenture’s Terminal Performance Management asset.

  • Providing guidance on definitions of cost management and governance processes and workflows.

Results
With the logistics management needed to improve its cost structure continually, the client has gained:

  • An enhanced enterprise performance management capability, allowing proactive cost monitoring and control.

  • Standardized mechanisms for cost control and cost analysis that ensure sustainable cost management.

  • A cost management system that provides the technology platform for cost analysis, management reporting and decision support.

Overall, the client has improved its analysis capability to understand profitability and costs by various dimensions—providing the cornerstone to drive improvement initiatives and customer strategy.

 

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