Best in Town: Reconcilling Excellence in Customer Service and Lean Practices

Looking back at the development within his business area, the freight forwarder Blue Water Shipping’s COO General Cargo, Per Nørgaard, was a proud man. Since Blue Water Shipping (hereafter Blue Water) was established in 1972, his division had experienced fantastic growth, and with nearly 875 employees and a yearly turnover of € 340m, General Cargo had become crucially important for the concern as a whole. General Cargo’s rather impressive development was largely enabled through a combination of a high degree of entrepreneurship, the ability to build and retain a strong team, and a very flat and flexible organisation with small units close to its customers. However, the market appears to be shifting, and this business model has come under pressure. Due to the fierce competition between modern supply chains, Blue Water’s customers are increasingly calling for leaning and more cost-effective operations. As a result Mr Nørgaard and his team face some tough challenges. How can General Cargo maintain a high service level with maximum customer flexibility while making operations leaner and controlling costs?