The pillar for Operational efficiency focuses on finding the ways to cost-efficiency while maintaining high level of quality. Our operating model in each of our Business Units is always a matter of interest, from how we can optimize the factory efficiency to improving the sourcing of modules, materials and subcontractors as well as utilizing our portfolio in the most optimal way.
Cost synergies can be captured, particularly following the NMG acquisition. Improved sourcing efficiency is possible by leveraging the larger scale of the combined operations, by centralising group functions a decrease of indirect costs related to e.g. marketing and IT systems and additional operational efficiency by optimized sourcing of modules.
Adapteo strives to produce the adaptable buildings in a faster, more reliable and sustainable way. In the supply chain, there is a strive to achieve logistic efficiencies and enable seamless delivery of buildings. Gaining material cost savings through more efficient production planning, as well as on maximising the delivery and return margin for rental modules, by focusing on assembly and disassembly costs, and subcontractor sourcing.
Adapteo are continuously working to unify processes and introduce a common culture to the organisation. This includes creating and implementing a new, common and aligned operating model with clear functions and roles. Additional actions are optimising the sizes of organisations in different countries based on the significance of the business and other key metrics and introducing best practices across the company.
Increased optimal utilisation rate of the portfolio is a result of a seamless co-operation and strong capabilities throughout the value chain and organisation. Key working areas to further improve the utilisation rate include supply chain, sales and operations, product development, solution and product standardisation, production and sourcing as well as data and analytics capabilities.
Regular maintenance, refurbishment and upgrades related to upcoming regulatory changes are tools to ensure the effective re-use and lifetime maximisation of modules that forms a building. Adapteo occasionally sells old modules and replaces them with new, more modern ones, to continuously renew its portfolio and we will be focusing on better monitoring and identifying the optimal time to sell and replace old modules.