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Empty Container Placement
Optimization
Objective
Design a solution that alleviates the challenges associated with container placements, transportation cost of repositioning, system revenue, inventory levels for strategic hubs, and balance.
Industry: Supply Chain
Services: Data Optimization, Supply Chain
Scope: Strategy, Branding, UX Design
Services: Data Optimization, Supply Chain
Scope: Strategy, Branding, UX Design
Cocoon Placement Moves
33%+
reduction in the number of daily Cocoon placement moves for the weekdays
Placement Transportation Cost
10%+
reduction in average placement transportation costs
Operating Cost Reduction
15-25%
Multiplicative effect of the reduced placement moves and lowers transportation costs
Our Client
is a logistics firm and global player in supply chain management, known for its customer-centric approach and cutting-edge technology solutions. With a significant international presence, they excel in optimizing global trade operations.
Challenge
Empty container repositioning is one of the most critical issues facing the supply chain, due to the unbalanced nature of import-export traffic. Shortfall of containers at origins is detrimental to logistics providers. The cost to return containers, service/ maintenance non-availability of existing containers, repurposing different container sizes or acquiring new containers to serve revenue opportunities are among the tradeoffs to be considered in the empty container repositioning puzzle.
Objective
Design a solution that alleviates the challenges associated with container placements, namely
- Reduce transportation cost of repositioning
- Maximize system revenue generating potential
- Determine inventory levels for strategic hubs
- Balance buy/lease new vs. repair/maintenance
Approach
A comprehensive Advanced Analytics solution that:
- Leverages a comprehensive repository of relevant internal and external data
- Improved visibility into expected demand
- Optimized containers repositioning based on the forecasted demands
Outcomes
- Automated the inefficient and labor-intensive repositioning of containers
- Designed opportunistic container inventory policies at strategic hubs, to minimize the need for intercontinental container repositioning
- Maximized payload utilization of containers
- Increased revenue based on eliminating missed opportunity due to container limitations
- Improved customer satisfaction and loyalty due to fewer late delivery incidents
Result
- ~ 33%+ reduction in the number of daily Cocoon placement moves for the weekdays
- 10%+ reduction in average placement transportation costs
- Multiplicative effect of the reduced placement moves and lower transportation costs, results in a compelling overall operating cost
- reduction in the range of 15-25%
- Increased container utilization and revenue potential due to better supply vs. demand visibility
- Recognized inventory policies at strategic hubs to minimize intercontinental moves
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