CEO Message 2017
Good morning Ladies and Gentlemen,
I would like to begin by congratulating Makarand Pradhan for having successfully steer his company to being listed on the Mumbai stock exchange and hence talking the company towards public listing.
I am sure it has not been an easy process, but no matter how, he has done it. Well done … and congratulations.
A decade on a transformed and dynamic NVOCC Organisation This year marks the 10th Anniversary of C P World Group’s establishment as a regional organisation founded on the ideals of being the best wholesale “NVOCC” operator in the trade lane that we participate in. Enabling sustainable growth. These ideals were written 10 years ago and are still found on our website. It took me ten years to realise how important the word “sustainable” will impact my business.
Hence, this year Global meeting tagline, “sustainable momentum.” 10 years of service evolution and development have brought C P World offices an unprecedented level of growth within each country. This has lead our organisation to maintain our position as one of the region more successful NVOCC grouping. Our 10th Anniversary vision provides the overall guidance of C P World Group for the coming years. They reaffirm our Group’s commitment to forge ahead together and, in doing so, reinforce the importance of ensuring that benefits of integration are felt by all offices, creating into an organisation. Rather I prefer the word, Community.
To achieve that, it is fundamental that C P World must first and foremost preserve the current trade lane provided and a stable regional office environment so that all the offices can continue to enjoy the opportunities brought about by the network community building process. Over the past 10 years, many working tools have been established, mostly spearheaded by the Singapore office. – Example of tools are our Freight Operating System, (FMS), Online Freight Portal, Agent Portal, Carrier Portal, Assessment Portal and Volume Report portal. These are example of some of the portals in our disposal. In the near future, I would like to roll out within the region, and between C P World and external partners. Such mechanisms or tools will result in tangible outcomes for the network, laying the foundation for future market penetration and business development as well.
Cohesion and Challenges
C P World must continue and will continue to uphold its neutrality and maintain its cohesiveness in the face of an increasingly unpredictable global market. C P World will always be “Friends to All, Threat to None”.
In order to do that, the network must also support and contribute it sales effort to ensure C P World continue to sustain and uphold the leadership of this network. To date, more than 50 agents around the world have established business relations and trade lane commitment with our offices. The number could have been more, but due to the competitive nature of certain market I am sad to note some trade lane has now been ceded to alternative agent that is not part of our network. I urge that you re-visit these trade lane and make another attempt to make it work within this network again.
One way to make it work is to remain proactive and deepening cooperation and collaboration with all partners here today. At the operational level, C P World resilience will be enhanced to protect from our industry uncertainties. Our viability, inclusive growth and integration will be given high priorities to ensure that the offices continues to prosper amid the rising trend of cost competitiveness. Our 10 years journey is a testimony to C P World commitment to the network.
The Need to Stay Relevant
C P World Group will need to continue to be relevant to the network and deliver benefits to all. To this end, more effective network feedback and participation is required, including not just with the owners but also feedback from the operations and sale level. Swift and successful conclusion of the pricing negotiations and continued efforts to further narrow the development gaps so as to promote more equitable growth within the network are among the top priorities.
Similar efforts will continue to be exerted in advancing the C P World marketing and sales agenda. Constant adaption and evolution in the approaches to make them more effective, inclusive and responsive to the challenges in building a competitive product is critical. The challenges will become increasingly interdependence across countries, all of which make it compelling for C P World offices and network agents to deepen and broaden cooperation.
This network, C P World Group network, with all its diversities, bound by ties of friendship and legitimate shared interests, through regional cooperation and integration, has so far in this 10 years delivered to its offices and agents the dream of a stable network with a global connectivity.
Such cooperation integration has not only benefited our offices, but also contributed significantly to the efforts to secure a better platform for which Multi-National forwarder otherwise commonly known as “Global Account” are now willing to consider working with each of the network companies. Hence, network - building is a continuous and forward-looking process. While no one can claim to know exactly how the world will evolves in the next decade, the future of C P World will be always in the hands of its people who have all reasons to be optimistic.
A road map of key challenges ahead
C P World has enjoyed a relatively successful and prosperous first 10 years. In recent years, we have made slow growth on an annual basis. Unfortunately, increasing the rise of cargo volume but a dip in profit margin. A rise in volume has in fact hit us with rising cost of operations. This is a challenge we need to overcome.
I am sure we can perform better, with an expected potential growth, when offices and agents align their interests with the C P World Group.
Tough Questions Arise
With the digital economy come tough questions about how to navigate the accelerating pace of technological change and digital disruption. We have no choice but engage the market demands on digital innovation. A costly affair, but a requirement we need to provide.
Enhancing Cross-Border Cooperation
C P World is not perfect. Network -building is an ongoing process. There is no alternative to this inter-agency co-operation. Leaders matter in this endeavour.
Much will depend on the leaders of member office & agents going beyond own country considerations to exert the regional ego to develop a resilience for C P World Group and the network to not just stay in business but to flourish as well.
I look forward to flourishing with you in the next 10 years.
Have a great meeting.
Ken Chiang
Group CEO
