Portfolio management in rail freight transport
For a customer with a combined rail production system we introduced a ‘portfolio approach’ that allowed for segmentation for the first time, and also offered insights into profitability, order history and utilization of this strongly interlinked production system. This approach not only increased the control over the business but also changed the culture within the company, particularly at the middle management level: a constructive dialogue on joint opportunities improved collaboration between ‘business partners’.
Alliance options in rail passenger markets
For the passenger transport division of a European railway company, we developed an international alliance strategy. The client’s main concern: to find a strategic partner with an excellent fit. We ranked attractive markets in Europe, defined strategic goals for the alliance, selected potential partners and developed high-level business cases for different alliance options. Finally, we detailed the most attractive alliance models, before making our final recommendation.
Transformation program for a logistics service provider
For a loss making, highly labor intensive logistics service provider we designed and led a major transformation program. We worked hand-in-hand with ten sub-teams of the client that conducted a thorough redesign and standardization effort of all core business processes, including IT and technology support systems. The company returned to its shareholder´s profitability expectations within 15 months.
Facilitating port community response for crisis recovery
After the 2008/09 crisis the private & public authorities in Europe’s second largest port launched a joint initiative to safeguard the port’s competitive position in an asset-intensive industry suddenly faced with a 15-20% loss of volume. We were appointed overall manager for this effort and member of the Steering Committee.
Over an 18-month period 300 executives from 100+ companies, port authorities & other stakeholders cooperated in 15 Working Groups, to develop vision, work out concrete ideas, and see to their implementation. Progress and final results were presented to the port community in several large-audience format sessions, in the presence of the Minister of Public Works and the City Council.
The project contributed to a swift recovery of confidence within the port and to a renewed sense of purpose. Subsequently the port has solidified its already strong position vis-à-vis its competitors.
Collaborative intermodal rail solutions
On behalf of key stakeholders at one of Europe’s leading ports, we organized a neutral platform to bundle fragmented intermodal volumes controlled by shipping lines and forwarders. The bundled demand was presented to a variety of potential service providers, who subsequently presented proposals for new intermodal links to the demand side. Port authority staff provided the neutral interface; our role consisted of market mapping; modeling the economics of rail shuttles; interviewing representatives from the supply and demand side and facilitating the discussions at the round tables.
We organized two rounds, the first one with the agents of the Top-20 lines (aimed at the local ‘carrier haulage’ market); the second with Pan-Euro decision-makers of the leading lines & forwarders. Round 1 yielded ten new intermodal connections, the second round (three years later) another six.
Pan-Euro intermodal service optimization
For an international intermodal freight service we evaluated market and profit potential by country. Data on existing freight flows and modes were encapsulated into a model that estimated market share as a function of time, reliability and price. We combined this with an in-depth understanding of the operating parameters and costs of the new service, which allowed for the most lucrative routes to be identified and for the optimal capacity and pricing to be deployed. The results were further refined into marketing and operational strategies.
Joint Venture Planning in port and logistics services
For a newly formed joint venture in container logistics services we designed processes, determined throughput objectives and planned for the required resource inputs. With a joint team from both JV partners we developed an organizational concept and planned in detail for its implementation. The joint venture has since sustained its position as a very profitable venture.
Redesign of sales organization and processes in air cargo
An air cargo carrier wanted to enhance the efficiency and effectiveness in sales processes, increase its “go to market” speed and improve its global sales steering. We assessed market needs through extensive customer interviews, analyzed sales processes and systems, and reviewed the global sales organization. Based on this, we delivered a concept for systematic market and customer development, developed an improved global steering model, streamlined the sales organization and defined target processes.
Business process optimization for a public transport operator
In preparation of a tender process for the renewal of its concession, we worked with a regional public transport provider in order to increase the efficiency of their operational processes and enhance overall competitiveness. Together with the client we mapped the overall process architecture, documented the main processes and identified areas for improvement – all of this based on extensive customer feedback. Simultaneously, we assessed revenues and costs per service and linked the newly defined product structure to the company’s controlling system.
Restructuring of a multinational rail freight operator
For a major player in the European rail freight industry we redesigned the production backbone, leading to an improvement in return on sales of 18 %. The new production approach was embedded into newly created business units that clearly reflected the demands from the different end-user industry segments, and increased business accountability.
Improving port labor pool operations
For a 10.000 man labor pool in one of Europe’s largest ports we worked with the pool manager and the leading employers to review current deployment and hiring practices, assess training needs, modernize HR practices and improve safety performance. We undertook extensive data mining to connect information on daily deployment to individual records. From this we built a 20-year outlook combining traffic and productivity trends with demographic data, revealing the need for urgent rehiring in aggregate and retraining towards certain work categories specifically. In a three-year period over 1000 new members were hired.
The findings and improvement initiatives were also used to conduct the local dialogue with the trade unions on a much more fact-based and rational level, and to use the outcomes of that local dialogue at relevant national and EU-levels, in defense of a system that the core stakeholders (companies, men, unions and government) wish to retain.
The six-person client team which worked with EPG in the diagnostics and formulation stages was coached to take up roles for the execution stage.
Investment case for Locomotives
For a lessor of locomotives we assessed the demand for multi-system locomotives, focusing in particular on the Benelux/Germany area. We examined the operating environment pre-investment and showed how an electric long-haul network in Germany was connected with diesel feeder networks in the Benelux. We established the investment case for locomotives that could serve the entire North-Western European region without border switches. The lessor has built a substantial and rewarding business along those lines.
Post merger integration of two worldwide logistics service providers
For two multinational port operators in the process of merging we developed an integrated, customer centric organisation and governance architecture. We defined future organization principles, roles and relationships between HQ, regional and local management, and integrated these principles into an overall organization and governance design. Since the new organization was implemented, the company developed into the fastest grower in its industry.
PMI of airline customer loyalty programs
Succeeding the merger of two major European passenger airlines, we supported the client in the merger of the two existing customer loyalty programs. We provided an in-depth economic analysis of the purchased customer loyalty program, compared structure and content of both programs and developed a concept for integration and member transfer.
Business design for a rail freight operator
Based on our joint intimate understanding of the European rail freight market, we developed concepts on how to manage the business profitable in a market that has structurally not been profitable for any large operator for several decades. The proposals did not only reflect opportunities in a difficult market but built on the company’s specific strengths.
Name recognition in China
One of Europe’s major ports wished to improve its name recognition in China. First we mapped the regional markets in China, and pinpointed the major areas where relevant decision-makers were located. We then planned a concerted ‘campaign’ to work on multiple fronts. We took a delegation from the main stakeholders on missions to Beijing, Tianjin, Shanghai, Ningbo and Shenzhen (with a series of commercial events in each location). A port representative office was established in Shanghai, and MOU’s signed with regional development authorities. On the ‘inbound side’ we helped start up tailor-made seminars for Chinese shipping lines and logistics companies. All of these activities are repeated on an annual basis, in a multi-year effort to raise the port’s profile.
Privatization and restructuring of port and logistics services
In co-operation with banks and government representatives we designed and implemented a privatization concept combining several state-owned enterprises. We developed growth strategies and organizational blueprints at the divisional and holding company levels; executed cost reduction measures in the tens of million euro range, and implemented a change management program. All turnaround measures were fully implemented and within fifteen months the new entity became one of the most profitable companies in its industry.
Growth options for European freight railways
In a market with evolving competition from private railway undertakings, we developed a growth strategy for the incumbent railway operator. For the main rail end-user industries and for the intermodal segment we mapped industry context and trends, supply chain developments and transport flows. We identified and prioritized the growth potential for the next 1 – 3 years and defined the main measures for implementation. The market assessment and supporting materials were integrated in the sales plan and made available to the sales organization.
Port labor safety campaign
A 10.000 man port labor pool had an unsustainable accident profile, both in terms of frequency and severity. We worked with the pool manager and handling companies in the port to establish a seven year improvement strategy, featuring ‘hard measures’ such as separation between man & machine but even more importantly softer, cultural factors such as leadership from the top, balancing safety with productivity, reward systems, empowerment for team leaders, …
Almost without exception the 100-odd port handling companies have signed the safety charter that embodies the joint ambition and approach, and the alignment between ‘the center’ and operating realities at the harbor front is improving. Safety performance started improving swiftly.
Opportunities in liberalizing European public transport markets
For an Asian player in public transport we evaluated opportunities for entering European public transport markets by means of bids for licenses in liberalizing markets. The study comprised an in depth analysis of the European competitive landscape in rail commuting, an evaluation of the differences in national bidding processes, an assessment of the financial attractiveness of each market, and recommendations on which markets to attack.
Strategic planning and role clarification for a leading port authority
We worked with the management team of one of Europe’s largest port authorities to craft a five year strategic plan. This plan focused on the expanding role modern port authorities are asked to assume on behalf of the whole port community: not merely to provide nautical service and lease out land but become an active partner in streamlining supply chains running over their port platform, taking the lead on marketing initiatives towards cargo owners and potential investors, and influencing stakeholders with significant effect on the port.
Fifteen Strategic Initiatives form the basis for the annual KPI’s for which the Management Team is answerable to the Board, and for the personal targets of all port authority staff.
Intra-port (rail) solutions
To help a large European port pave the way for cost-effective ‘rail feeder services’, we assessed operations in all other Hamburg-Le Havre range ports; modeled the economics of intra-port operations; facilitated discussions between the port authority and the incumbent ‘monopoly’ provider; and constructed the business case for an alternative consortium of rail operators.
Under pressure from this potential alternative the incumbent agreed to publish its tariffs, commit to performance levels and post clear conditions so as to make the market more transparent. The port authority also took steps to remove a number of hurdles for rail operators.
We also consulted to the port authority on potential improvements to barge operations (joint planning service; bundling of traffic) in order to provide better service at lower cost, and to optimize the use of intra-port barge services as a further alternative to rail.
Facilitating partner discussions
On behalf of three prospective partners seeking to establish joint intermodal terminals in UAE ports we organized a tour of European intermodal terminals, to experience the various forms of contracting and cooperation that can be organized along the intermodal value chain. The joint trip also provided plenty of opportunities for the partnership discussions to be stress-tested with the new insights gained during the tour.
Assessing investment in rail passenger franchises
For a potential investor in two railway passenger franchises, we evaluated the potential risks and returns – providing an independent view in a short, focused project. We quickly identified that the investment could yield high returns, but because of the financial structure it also had very high risks linked to the operational efficiency levels that needed to be achieved. The client decided that these risks did not fit with its investment strategy and withdrew from the process. Our view on risks was proved correct when the winner of the franchise ran into severe financial difficulty some years later.
Intermodal strategies in Europe
We have assisted various players along the intermodal value chain (shipping lines; intermodal operators; railways; ports) by segmenting the market into customer-defined segments, choosing appropriate positioning strategies, introducing a clearer focus on cost-competitive traction, and improving commercial effectiveness.
Strategies for an evolving logistics industry
In a tough and evolving landscape of outsourced logistics services we have supported leading players to understand the dynamics of customer behavior, help reshape their product offering, and clarify the economic linkages between their core business (e.g., freight forwarding; express freight; container shipping; trucking) and their ‘solutions’ business.
Product strategy and product development for freight companies
We have regularly developed product strategies for European freight companies based on standardized product modules that force the company to reduce the variety of its processes (and therefore also reduce cost). Typically we would develop a product hierarchy that allows a wide and cost-effective range of services by combining a limited set of standardized modules.
Intermodal operations for liner shipping companies
We have worked for several large shipping lines active in Europe to improve their landside operations. We helped reduce empty running by optimizing modal choice and improving the match factor/match quality in trucking. We enhanced the coordination between commercial & operational functions and supported targeted sales efforts to reduce inland ‘trade imbalances’. We helped evaluate support tools and streamlined processes and organization.
Energizing the request-for-proposal pipeline
We helped an entity working on several thousand requests for proposal every year to maximize value out of this commercial pipeline by introducing higher specialization and automation, combined with the introduction of specialized units that allowed for higher success rates with high value / high probability requests. As a first step we segmented the portfolio of potential customer requests by probability of success as well as impact on the P & L of the respective customer. Secondly we designed solutions to automate the existing processes – either through standardization of small value offers or by implementing workflow systems that allowed for a faster and more professional response process.
Segmented selling approaches
With many clients we have successfully used the insights from detailed market mapping and quantitative customer research to drive much more effective and economical allocation of sales resources. We help our clients distinguish between truly small customers who are best sold to and served through telesales and internal support teams and customers with whom our client has a small share-of wallet but who represent significant upside potential. The latter might receive increased attention from direct sales executives, if the economics warrant the additional selling cost.
A global architecture for salesforce compensation
We have helped companies that have grown by acquisitions to realign their array of sales compensation schemes. We typically develop a global ‘architecture’ for sales compensation that takes into account the very different competitive situations in which the company finds itself across geographies but that also recognizes that the company needs to be in a position to push much more strongly on central themes crucial to its bottom-line (e.g., a concerted push on new products, or an initiative to focus more on the middle market, or a program to reward better customer retention). We develop the structure, run beta tests, and support local sales management to calibrate the plans for their market.
Establishment of a Pan-European headquarter
For a company that during two decades had operated with fragmented national operations and managed its European operations from two different headquarters, we created a single Pan-European Headquarter and helped drive significant standardization in products, processes and structure at the same time. We worked with client teams on the redesign of all major activities and processes, developed a blueprint together with the new Pan-Euro management team, and coached in the phased turnover to the new design. We developed a convincing approach that managed to bridge the inevitable cultural conflicts.