Port terminal company identifies USD 8.8 million in labor productivity losses and develops initiatives totaling USD 15 million to close the gaps
A port terminal company had experienced a significant decline in its EBITDA margin and operating income. The initial hypothesis pointed to personnel costs and a drop in volume as the main causes of the loss in labor productivity.
The challenge was to validate that hypothesis, quantify the impact of the various variables, and define a concrete action plan to close the identified gaps.
Approach
At SummaPartners, we worked with the client to deepen and validate the labor productivity assessment, focusing on identifying, quantifying, and prioritizing efficiency opportunities.
First, we analyzed the findings of the existing assessment and validated the various sources of productivity loss. The analysis allowed us to identify and quantify five main factors:
• Increase in compensation
• Workforce mismatch
• Loss of volume
• Inefficiency in effective work time
• Union negotiations
Next, we quantified the contribution of each variable to the decline in productivity and reassessed the initiatives the company had previously developed during a corporate workshop.
Based on this analysis, we designed a plan to close these gaps, evaluating the impact and feasibility of the initiatives and identifying opportunities with a potential impact of USD 15 MM.
Finally, we prepared roadmaps and preliminary implementation plans, prioritizing initiatives and organizing their rollout into different phases.
Impact
The analysis identified USD 8.8 MM in labor productivity losses and helped us understand the variables driving that gap.
Based on that, we structured and evaluated a plan of initiatives totaling USD 15 MM, prioritizing opportunities according to their impact and feasibility.
The project also delivered roadmaps and preliminary implementation plans to guide the implementation of the initiatives in the short term.
Overall, the work transformed a hypothesis about the decline in productivity into a quantified assessment and a prioritized plan to address its main causes and make progress in capitalizing on efficiency opportunities.
Key Learnings
Identifying productivity opportunities is only the first step. The value lies in quantifying them, prioritizing them, and structuring how to capture them.
Understanding how much each source of loss accounts for allows you to move from a general assessment to a set of concrete initiatives. By evaluating their impact and feasibility, the organization can focus its efforts on the opportunities with the greatest potential and build a clear roadmap for their implementation.
At SummaPartners, we help our clients identify, assess the scope of, and capitalize on opportunities for productivity and efficiency—from diagnosing gaps to prioritizing and preparing for implementation.
If your company needs to regain productivity and turn its gaps into concrete opportunities for improvement, let’s talk.