Our client is a French-English rail transportation service operator for passengers and trucks, with a global turnover of 700M€.
Business Challenge
The Group's strategy focuses on core activities and operational excellence to secure service reliability, increase turnover, and finance strategic growth in freight transportation. However, a 20% turnover decrease due to economic slowdown and increasing breakdowns on rolling stock equipment, coupled with fierce competition in a stagnant market, necessitated a rapid increase in the reliability and competitiveness of the transportation service. To secure trains’ reliability and availability, a cost reduction target of 20% had to be quickly achieved. To meet the CEO’s expectations, a secured optimization plan had to be built within 3 to 4 months.
Approach
EFESO supported in:
- The optimization phase was mobilized in 4 steps with supporting cross functional workshops throughout the process:
- Needs and functional analysis
- Search for alternatives
- Compare and select solutions considering risk, technical performance, costs and lead time, compare the solutions and select the best design
- Improve the business process of cross functional project work towards ambitious target costs
Main Results
- 39% CAPEX costs reduction (representing 25% of annual operating margin)
- Optimized investment renewal plan
- Improved Business Process
