Optimizing Terminal Assets Portfolio
Lean Operations - Cost Control
Four measures to improve lean operations
and cost control capabilities
Innovatively set up ports operations management COE
Team
Establish cost control incentive system
Formulate four-stage cost control and supervision system,
including 1) terminals; 2) Operations Center and COE
Team; 3) Audit & Supervision Department supervise the
work; 4) In terms of long-term problem which can not be
effectively solved regarding cost control, introduce
personnel change and disciplinary inspection when
necessary
Set up centralized procurement system based on the
principle of making as many necessary purchases as
possible from the same supplier
A series of cost control measures
Actively promote and enhance automation in the
terminal to improve efficiency and lower outsourcing
cost
Evaluate the allocation of human resources and
ā maximize human resources by one job post with
multi-functions or change of job to lower labor cost
ā Improve the working efficiency of cranes to reduce
equipment electricity and fuel cost
Increase durability of equipment by in-house
maintenance to lower maintenance expense
Our Terminals highly value the cost control system, focusing on cost per TEU. Hence, we incorporated the "cost per TEU"
concept into KPI and established operating cost control goals for subsidiaries in order to effectively implement cost control
measures within the operational system
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