ShipNet Case Study

Story

  • Owned by Inchcape Shipping Services (ISS) since 2007.
  • Early on there was a realisation that the investment was a poor fit within ISS.
  • ISS has changed their operating model almost every year and had approx. 8 MD’s run the company since 2007.
  • Poor customer contracts had been constructed due to lack of contract compliance and governance.
  • Captive customer base; however, customers started to lose faith in the operating model.
  • Volaris bought ShipNet in March 2017 as the customer base was strong and the organisation had the potential to evolve.

Solution

  • Pragmatic mindset on listening and engaging with the customer established using learning and best practices from Volaris group.
  • Robust governance processes established for contract management and contract pricing resulting in lesser leakage of revenue.
  • Multiple talent and leadership touchpoints and programs rolled out across our employee base.
  • Executive leadership coached by Volaris Portfolio Management team.
  • Insights provided related to cost benchmarking and valuable R&D practices within the industry that supported optimisation efforts.

Results

  • ShipNet produced the best financial results (Revenue, EBITDA, EBITDA %) that it ever had over the last 10 years of trading.
  • Talent was nurtured, and people become more passionate about making the business more successful.
  • Customers valued honest, transparent conversations coupled with solutions that would make a difference. Two major customers turned around from writing off ShipNet to becoming ShipNet‘s most valuable long-term partners.
  • R&D team organised better and working towards producing better quality products.
  • Organisation now has a clear focus on its 5-year outlook, goals and priorities.