Zim trims fat to build ‘lean, agile enterprise’

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ZimIsraeli shipping line Zim Integrated Shipping Services has announced sweeping changes to its organizational structure as part of a strategy to “build a lean and agile enterprise.”

Amid dim predictions for the shipping industry, Zim has unveiled an “extensive program to change its organizational structure” based on the company’s business plan to “focus on profitable trade areas in which Zim enjoys competitive advantage.”

The program designed to “create a more flexible, commercially focused company” will take effect on March 1, 2016.

A company statement said the essence of the change is to strengthen the three major business units as independent of each other and to cancel area management sections. The units to be fortified include the Pacific Unit, which will center on trade between Asia and North & Central America.

The other two are the Intra-Asia Unit that will zoom in on trade within Asia; and the Cross Suez-Atlantic Unit that will concentrate on trade between Asia and the Mediterranean Sea, intra-European trade (including Israel), and trade between the Mediterranean Sea and the Americas.

Cancelling the area managements will enable the country offices to respond quickly to market needs and work directly with the business units, said the statement.

The business units will be headed by company vice presidents who will report directly to group president and CEO Rafi Danieli.

Nissim Yochai, now managing global sales, is appointed vice president of the Pacific Unit. Danny Hoffman, now managing the Asia-Pacific area, is appointed vice president of the Intra-Asia Unit, while Rani Ben-Yehuda, now managing Israel and the Near East Area, is to become vice president of the Cross Suez-Atlantic Unit.

Rafi Ben-Ari will continue in his role as vice president of the shipping unit, and in addition will be responsible for the country offices. Zim will continue its operations in other trades with no change.

“The new structure strengthens the position of ZIM in the trade in which it operates and is an important element in implementing our strategic plan and in improving the level of service to our customers,” said Danieli.