The firm shifts its focus away from regional operations to a more localized outlook.
CEVA has reorganized its operating structure, jettisoning the company’s regional approach for a group of 17 clusters around the globe.
The clusters can be comprised of one large country of can be made up of smaller countries, the company said. CEVA will impose “standardized governance and business rule across all clusters,” according to a press release.
CEVA’s chief executive officer, Xavier Urbain, called the reconfiguration transformative and said the change will “enable faster decision-making and greater responsiveness” to customers.
“The new operating model will drive increased network efficiency and productivity by eliminating duplicate work and functions, as well as strengthen communication across the business,” he stated.
During the third quarter, CEVA experienced a 6.7-percent bump in adjusted earnings from the second quarter, ending the period with $64 million.
Revenue during the period increased by 0.7 percent to $1.99 billion. Airfreight grew by 5 percent over the same period in 2013; according to CEVA, ocean freight volumes outperformed the market by 11 percent.
“This quarter, we continued to make important strides in executing our strategy,” Urbain said in a statement. “Our focus over the course of 2014 has been very deliberate: We have rebuilt the management team with executive leaders who know the industry, which has had an immediate impact, and have organized our go-to-market plan based upon our major business lines — airfreight, ocean freight and contract logistics — to enhance customer value. “
Cost-saving measures implemented during the quarter include site consolidation in Singapore, restructuring in Europe and introducing transport-cost saving e-auctions.
CEVA reconfigures operating model
