COST MANAGEMENT

1. Customer Service

2. Competitiveness

3. Cash/Credit Control

4. Capability Building

5. Cost Management

The term cost management is widely used in business today. Especially during the current economic and financial crisis is impacting every large or small organization, and across every sector from automobiles to garment manufacturing, property development to retail and even logistics sector. Causing every company to focus more on cost management and streamlining their overheads and making efforts to reduce daily operating costs. To elaborate further, COST MANAGEMENT is the process whereby companies use cost accounting to report or control the various costs of doing business. Management and managers use this cost accounting to support decision-making to cut company's cost and improve profitability.

Cost management has 3 broad focuses. One aspect is to plan and control decisions that increase value for customers and lower costs of products and services. By offering good LCL ocean rates to our shippers and relating to our 2nd "C", to stay relevant and COMPETITIVE in the respective local markets. With this cost advantage, we will further enhance it will good CUSTOMER SERVICE (1st "C") to entrench our shippers for long-term business relationship.

The second aspect is to plan and control of cost that were linked with revenue and profits. We often called it as "Direct" cost. From our studies, 61% of the total cost comes from Carrier related cost, 11.4% are CFS related costs and 8.1% comes from Transportation related cost. Therefore, proper control, reduction and managing of direct costs give the most significant benefits and directly impacting the bottom-line. We need to continuously engage the carrier for best rates and to improve our current terms and conditions with our supplier/contractors. For a service we sold for a dollar, our profit may be 10, 20 or 30cents. However, if we can cut our cost by a dollar, we will be saving and directly earn this dollar.

The last aspects will be overheads ; about 70% of our overhead costs consist of staffs' pay-roll and related cost. Human capital is our biggest assets and we need to drive this industriously and intelligently to produce highest productivity level. We can involve existing staffs for new projects or development, practicing job rotation and staffs re-deployment ensuing to productivity with the same costs. Moreover, reviewing and scrutinize traveling, printing and stationery, telephone-communications, utilities, postage and courier etc. We need to take ownership of cost management and to cut down on unnecessary printing and reduce wastages on utilities. Remember, "A dollar saved is a dollar earned"

We are now at the final issue of "SAILING THROUGH THE STORM". The 5 "C"s is not practiced in isolation, but inevitably intertwine with each component. To be more macroscopic, it is also an integral part of general management strategies and implementation in creating a top global NVOCC company with a common vision of 

•  To earn the  ADVOCACY of our customers

•  To gain the  ADMIRATION  by our competitors

•  To exhibit PRIDE as a Globelink employees.

Together we shall ride the tide and emerged stronger to realize our dreams THE GLOBELINK VISION.