Greek Shipping as a Geopolitical Power Source
Camille Egloff is a Senior Partner & Managing Director at BCG Athens and Global Leader of the Transportation & Logistics sector.Watch the video
Shipping organizations face intense pressure to operate more efficiently and profitably while catering to the increasingly sophisticated, digital demands of their customers.
Ongoing overcapacity, paired with a relatively soft global demand, is putting tremendous pressure on the rates and profit margins of shipping organizations.
Meanwhile, customers themselves are clamoring for faster, more streamlined services that afford integrated, end-to-end logistics capabilities versus port-to-port offerings. Even the most loyal customers are now turning to providers that offer solutions designed to deliver deeper value along the supply chain.
Shipping executives thus are forced to reevaluate many of the ways in which they’ve traditionally conducted business. Many of those tried-and-true methodologies simply no longer stand up to the complexities of today’s volatile business environment. New strategies that can more effectively optimize utilization and cost structures must be adopted.
Digital transformation offers a way to get there, and sophisticated shipping competitors know it. Innovative players are speedily bypassing traditional shippers with new and efficient digital business platforms that deliver more benefits to customers. Indeed, digital isn’t just a nice-to-have philosophy: it’s the very key to survival, and serves as the launch point for transformational turnaround.
Digitalization Lessons Shipping Can Learn from Other Industries
The blueprint for success draws upon three key digital actions: develop new business models and offerings, digitalize core operations, and build a robust internal digital foundation. For shipping organizations, the transformation model requires the following: