Dutch logistics giant Ceva Holdings LLC said today it will eliminate its regional operating structure in favor of a system that puts more decision making in the hands of executives at the local level.
Effective Jan. 1, Ceva will operate through 17 local "geographic clusters" that will follow standard governance and business rules. A cluster may consist of one large country like China, or several counters in close proximity, Ceva said.
Ceva CEO Xavier Urbain said in a statement that the decentralized model would enable faster responses to customer needs and improve efficiencies by eliminating duplicate work functions.
The announcement came as Ceva reported a 0.7-percent increase in third-quarter revenue over the prior quarter's results. Airfreight and ocean freight volumes rose 5 percent and 11 percent, respectively, over prior-year levels. However, tightening airfreight capacity on trans-Pacific lanes resulted in margin pressures that offset the volume gains.
Ceva's third main product line, contract logistics, reported strong results in the U.S., offset by subpar volumes in the Asia-Pacific automotive market.
Ceva also announced that Michael Schaecher, previously chief operating officer of global airfreight, has taken over its air and ocean business lanes. At the ocean operation, he replaces Dominik Tichelkamp, who has left the company.