Case Study
Shipping giant transforms operations leading to 180% increase in productivity and 54% cost reduction with UST's cost takeout model
CLIENT
A global leader in shipping and logistics, operating one of the world's largest fleets of container ships. Offering comprehensive transportation solutions—including ocean and inland freight, port operations, and supply chain management—the company is renowned for managing complex global supply chains with sustainability solutions, playing a pivotal role in connecting businesses worldwide.
CHALLENGE
High costs and workforce fragmentation threatened efficiency
Our client faced a multifaceted and complex challenge. Soaring operational costs and fragmented processes stemming from a reliance on a workforce composed of a rotating contractors and vendors with little cost or process control. These operational challenges led to fragmented teams, inconsistent processes, and knowledge retention issues across the company, as critical expertise left with departing contractors. An absence of standardized procedures resulted in inefficiencies and lower productivity, exacerbating operational costs.
Compounding these issues, the client struggled with managing their vendors and new virtual teams due to limited experience with remote work dynamics. This inexperience caused communication breakdowns, coordination challenges, and a lack of cohesion among teams. Connectivity and hardware issues further hindered virtual team effectiveness. Expanding into new geographies added complexity, with difficulties adapting to different market conditions, regulatory environments, and cultural nuances impacting their ability to establish efficient operations.
TRANSFORMATION
UST's global delivery model streamlined operations and enabled workforce continuity
UST provided a comprehensive workforce transition and managed services solution, leveraging a global delivery model across India, Denmark, the U.K., and the U.S. Within months, UST scaled-up to over 490 skilled professionals, covering five domains, 15 sub-domains, and more than 20 core applications across 120 role types.
By deploying an on-shore, off-shore staffing model, UST reduced costs and provided varied and deep expertise around the clock. A smooth knowledge transition was facilitated through close collaboration with the client's subject matter experts (SME’s) and contractors. UST implemented a "customer voice for the day" practice, ensuring daily alignment and immediate feedback on all efforts. UST built a robust transition management framework from these efforts, recorded all sessions to implement a company-first comprehensive knowledge repository accessible to all teams, current and future. Daily sourcing and pulse calls were conducted to maintain focus and ensure timely delivery.
These efforts enabled UST to standardize roles for our client, improve documentation, rework business critical artifacts, and speed delivery to enhance clarity and usability while further improving workforce continuity. This structured approach enabled the client to efficiently manage and scale operations across multiple domains and applications using their new globally integrated delivery model.
IMPACT
Massive cost reduction and enhanced workforce alignment resulting in $5 million in annual savings
UST's solution not only slashed operational costs but also enabled workforce continuity and empowerment, enabling the shipping company to efficiently manage and scale global operations with the deep expertise and standardized processes. The following results transformed the company's processes and growth trajectory:
- 54% reduction in operational costs—Strategic offshore, nearshore, onshore staffing and service consolidation led to substantial cost takeout.
- $5 million in annual savings—Performance optimization brought by new, deep expertise and workforce continuity directly contributed to significant financial savings.
- 1.8x increase in project delivery speed—Delivered projects rose from 24 to 45, with most completed 50% faster due to the efficient onshore-offshore model.
- Improved efficiency and continuity—Aging tickets reduced from 66% to 15% and automations decreased ticket volume by 50%, allowing teams to focus on high-value tasks.
Finally, UST’s strategic operating model brought 24x7 support, enhanced responsiveness, support for critical operations and the agility needed to help the shipping giant continue to dominate on the global stage.
Discover how UST's staffing solutions can reduce costs and enhance operational efficiency for your business.
RESOURCES
https://www.ust.com/en/what-we-do/strategy-implementation-operations
https://www.ust.com/en/what-we-do/strategy-implementation-operations/scaled-operations