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APL Organizational Changes |
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Singapore, Oakland, CA, London, 25 January, 2003 - Global container transportation company APL today announced a flatter, leaner organizational structure. Chairman of APL's parent company, Singapore-based Neptune Orient Lines (NOL), Mr Cheng Wai Keung, said the Board's Executive Committee had been working closely with Acting CEO of APL Ron Widdows to develop an organizational structure for the liner company to help it achieve the goal of sustained profitability. That structure and subsequent personnel changes had now been evaluated and approved by the appropriate Board committees. Mr Cheng said a key goal was to create a flatter organization — partly to reduce costs, but also to speed up decision-making. A consequence of this was that the position of Chief Operating Officer was eliminated in the management structure. As a result, by mutual agreement, COO Ed Aldridge was leaving the company. "We wish Ed well for the future," Mr Cheng said. The number of regions would also be reducing, Mr Cheng said, from six to four: Americas, Asia, China, Europe. "For personal reasons, the current head of APL Asia, Ken Soerensen, is returning to Europe," Mr Cheng said, "and consequently leaving the company, by mutual agreement. He will stay on in the meantime to assist with a smooth transition to the new structure and until a new appointment is made to the senior Asia position." Mr Cheng said there would be a new focus on the trade lanes under the new structure. The trades include services and customers across the Transpacific, Transatlantic, Asia Europe, Intra Asia/Australia and Latin America trade routes. "We have a strong team of capable and talented managers running the trades, which are our front line in terms of assessing the requirements of customers, working to meet their needs and negotiating rates," Mr Cheng said. "They are therefore key to us achieving our goal of sustained profitability. "As part of the implementation of our strategy to pursue rate recovery globally, the trades will be separate from the regions and will work together towards clear revenue targets. Previously, responsibility for the trades came under each of the regional organizations. There were no changes in the leadership of the trades," he said. Mr Widdows said the new structure was designed to allow swift responses to changing market conditions. He underlined the focus on cost containment and yield management. "Along with cost containment, yield management is the top priority and I will be working closely with Dan McHugh on this." Mr McHugh continues to lead the yield management team, strategic liner management, global sales and marketing, customer support and e-commerce, based in Singapore. "Placing more responsibility on the trades and taking a more robust approach to yield management, developing and driving pricing strategy and ensuring we select the right cargo mix to generate maximum returns will contribute significantly to helping us achieve our goal of sustained profitability," Mr Widdows said. "Our sales and marketing and yield management organization will work closely with the trade managers to support that effort. "We
have set a target of US$150 - 200 million for operating improvements
in 2003. While cost containment will be the major contributor, yield
management is targeted to contribute around a third of that, "
Mr Widdows said. The head of APL Latin America, Manny Fernandez, will continue to have responsibility for the operation of that area and report to Bill Hamlin, he said. In addition, Mr Fernandez also takes on responsibility for APL Logistics in Latin America, to help develop the synergies between the two companies to the benefit of customers. The Middle East/West Asia region would fold back into one Asia region, Mr Widdows said. "An appointment to the senior role in Asia will be made in due course. There are several strong contenders for the position internally," he said. "Until an appointment is made, current head of the Middle East/West Asia region, Dan Ryan, and Ken Soerensen will continue to manage their respective parts of the region and ensure a smooth transition to the new head of APL Asia when an appointment is made. "We have set aggressive targets for 2003," Mr Cheng and Mr Widdows said, "and we will be driving hard and fast to achieve them. These changes create a spare and result-oriented organization with clear lines of accountability and a strong focus on customers. It allows APL's talented and experienced team of people to do what they do best — the business of shipping." Media
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