Our focus in 2011
The combination of our continued focus on a defined operating model, supplemented by significant transformational change, led to significantly improved results in the second half of 2010. Moving into 2011, this will be supported by a new, definitive roadmap for the future, supported by an engaged and empowered workforce following a renewal of our strategy at the end of 2010, which provides us with a definitive roadmap for the future. We enter 2011 anticipating that we will continue to strengthen our young company.
Our three year strategy is underpinned by our existing asset-light operating model, and our clear goal to become the most admired company in the supply chain industry. From 2011-2013, we will focus on five strategic priorities, supported by our values and the credo of Impeccable Execution.
China represents a major growth opportunity for CEVA. We are already well positioned across the entire supply chain in China where over 60% of our revenue comes from Century customers. We aim to increase our share of the market to five percent by 2013, by further building our capability and leveraging our integrated global network to support Chinese companies’ globalization. Our joint venture has firmly established us as a leader in the automotive sector, and our growth plans include diversifying our business portfolio into other sectors.
We have identified five priorities over the next three years that will underpin our strategy. Our goals include delivering best-in-class customer account management; being an employer of choice; delivering significant growth and market leadership in China; being a market leader in oceanfreight; and delivering industry leading Freight Management solutions through improved efficiency and productivity.
Century Account Program
Our Century Account Program continues to represent significant growth potential for our business. From 2011 we will take an even more focused account management approach to providing these customers with best-in-class account management and global, integrated solutions that increase our share of their logistics spend and drive profitable revenue, with the objective of achieving growth at rates 50% above
the CEVA non-Century account average and increasing the proportion of revenue from this group of customers from 52% to over 57%.
We pride ourselves on our people and aim to be an employer of choice for top talent in the industry. To support our growth we will focus on enhancing our management quality, professionalism and organizational effectiveness, supported by standardized processes and systems worldwide. Attracting and retaining top talent from within our industry and other sectors, will complement our comprehensive plans, which include approximately 25 projects, to harness the existing expertise within our business as we motivate, develop and organize our people to achieve best-in-class operations that will benefit our customers.
Ocean remains a focus for us in 2011, building on the success achieved in 2010 where total oceanfreight volumes were 672,000 TEU, of which 356,000 TEU were controlled shipments by CEVA - an increase of 27% of controlled volumes compared to 2009. For the remaining volume CEVA provided Freight Management services. CEVA has a relatively small share of the ocean market, and our ambition is to be within the top 5 ocean forwarders in total volumes and a top 10 in controlled volumes within the next three years. To achieve this we have established a focused leadership team and well defined target sectors, where we can provide a sustainable competitive advantage for our customers through value-added solutions.
Over the next three years, we will drive further improvements in our Freight Management processes and systems to deliver best-in-class service for our customers and optimal financial performance. By continuing to standardize business processes throughout the organization, we will increase the efficiency and quality of our service, as well as deliver cost savings that will increase the profitability of our operations. In 2010, we established the building blocks for this program and in 2011 will begin the roll out of standardized systems across the business.