Case studies

Relevant service: Business Transformation, Operational Excellence, Shingo
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From Legacy to Leadership: A Success Story of Port Transformation

About the Company

APM Terminals Poti is a vital gateway located on the Black Sea in Georgia, serving as a key hub for trade in the Caucasus and Central Asia regions. As part of the global APM Terminals network, Poti offers advanced container handling, cargo logistics, and efficient port services. The terminal is committed to driving economic growth in the region, continuously enhancing its infrastructure and operations to meet increasing demands. With a focus on reliability and service excellence, APM Terminals Poti plays a crucial role in facilitating international trade and supporting the local economy.

The Challenge

The organization faced several challenges, including issues with external logistics providers and a legacy culture that hindered engagement and communication. There was a lack of alignment in organizational behavior, poor understanding of customer value, and unclear processes. Key systems and performance measures were not well-defined, leading to poor alignment between functions. Additionally, engagement with stakeholders was inconsistent, infrastructure was outdated, and congestion on roads to the port facility was a significant problem.

port logo
Company
APM Terminals Poti

Industry

Size

Over 500 employees

Revenue

$5 billion for APM Terminals (2023)

Category

Website

What We Did

Recognizing the need for a clear purpose, we engaged local groups to understand the "big WHY" and focused on supporting prosperity and development. Despite the challenges posed by a legacy culture resistant to widespread engagement, a successful four-day event involving over two hundred employees was organized. This event communicated the site’s strategy, addressed concerns, and laid the foundation for ongoing communication, becoming a vital part of the organization’s future plans.

"There is no way we could have reliably supported the increase in volume without the engagement and focus on our team and our systems"
Julian Fernandez

Results

APM Terminals Poti achieved record-breaking operational performance in April 2023, thanks to the strong engagement and focus of its team and systems. Despite the challenges posed by increased volumes, including those related to the conflict in Ukraine, the port maintained high levels of service. This consistent and exceptional performance has supported significant additional investment in the port's expansion.

Numerical Results:

  • April 2023: 91.3% increase in container volumes compared to April 2022 (highest ever in a single month).
  • Car handling: Increased by 59% over the past two years.
  • Container volumes were 73% higher in the first four months of 2023 than in the same period in 2022.
  • There were 103 container ships handled in the first four months of 2023, a 74.6% increase from the same period last year.
  • 3,848 TEUhandled by rail in the first four months of 2023, the highest in any comparable period over the last three years

Framework

APM Terminals Framework

APM Terminals had  reached out for support in enabling cultural and system change grounded in the Shingo Enterprise Excellence Philosophy.

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