How Westports Malaysia achieved RM5 million
in savings within the first 12 months
Case Study Overview
THE CUSTOMER
Westports Malaysia Sdn Bhd (formerly known as Kelang Multi Terminal Sdn Bhd) is a multi – cargo port that handles all types of cargoes in containers, break bulk, dry bulk, vehicles (roll – on roll – off) and other conventional cargoes. Located along straits of Malacca, Wesports has become the 12th busiest seaport in the world. Saving
- 80% Market Share
- 5,000 Employee
Outcomes
- Over 1600 Auctions
- Sold Over RM 10 Mil Worth of Scrap
- Total Purchase RM 3.1 Billion
- Total Savings RM 271 Million
- Turnaround time 50%
Procurement Transformation: Reducing Cost and Increasing Operational Efficiency
Synopsis
The procurement function at Westports was challenged by the need to cut operating cost and to introduce structured governance and supplier management. Procurehere professionals led the transformation program across 106 indirect procurement categories, managing 410 suppliers. As a result, Westports achieved RM5 million in savings within the first 12 months of integration
The Challenge
Organisational
- Inconsistent contract pricing.
- Lack of standardization, automation and visibility.
- Spend tracking.
- Increases savings and profit margins.
Business
- Reduce cost.
- Increases transactional transparency.
- Too many suppliers under different categories offering similar services.
- To implement internal control and governance.
- Reduce Buying Channels.
People
- To manage the unconsolidated large number of suppliers.
- To effectively measure supplier efficiency
Outcomes
Port Management is a very competitive sector. It is imperative that we have the right tools to manage shipments at the right time. Procurehere solution allows us to secure supplies so that port staff are available to best serve our clients
Datuk Ruben Emir Gnanalingam – Group Managing Director, Westports Holdings.
How Westports Malaysia achieved RM5 million in savings within the first 12 months
Case Study Overview savng
THE CUSTOMER
Westports Malaysia Sdn Bhd (formerly known as Kelang Multi Terminal Sdn Bhd) is a multi – cargo port that handles all types of cargoes in containers, break bulk, dry bulk, vehicles (roll – on roll – off) and other conventional cargoes. Located along straits of Malacca, Wesports has become the 12th busiest seaport in the world. saving
Outcomes
- Over 1600 Auctions
- Sold Over RM 10 Mil Worth of Scrap
- Total Purchase RM 3.1 Billion
- Total Savings RM 271 Million
- Turnaround time 50%
Procurement Transformation: Reducing Cost and Increasing Operational Efficiency
Synopsis
The procurement function at Westports was challenged by the need to cut operating cost and to introduce structured governance and supplier management. Procurehere professionals led the transformation program across 106 indirect procurement categories, managing 410 suppliers. As a result, Westports achieved RM5 million in savings within the first 12 months of integration
The Challenge
Organisational
- Inconsistent contract pricing.
- Lack of standardization, automation and visibility.
- Spend tracking.
- Increases savings and profit margins.
Business
- Reduce cost.
- Increases transactional transparency.
- Too many suppliers under different categories offering similar services.
- To implement internal control and governance.
- Reduce Buying Channels.
People
- To manage the unconsolidated large number of suppliers.
- To effectively measure supplier efficiency
Outcomes
Port Management is a very competitive sector. It is imperative that we have the right tools to manage shipments at the right time. Procurehere solution allows us to secure supplies so that port staff are available to best serve our clients
Datuk Ruben Emir Gnanalingam – Group Managing Director, Westports Holdings.