Transportation design and optimisation resulted in savings of over $1m in ocean freight spend within 12 months of implementation.
Need to increase transport efficiency
The customer's suppliers all shipped parts separately to the customer's manufacturing centre in the US. Each such shipment was not large enough to fill a container (full container load - "FCL"), so was sent instead as less than container load ("LCL") shipments. This contributed to high transportation costs and increased instances of damage and handling issues. In addition, the customer also wanted to reduce global spend on sea freight.
DSV analysed these different supply chains and proposed consolidating the LCL shipments into FCL in China, Europe and Indonesia instead of each supplier sending separate shipments all the way to the US.
Benefits for the customer
- All supplier orders in each region were consolidated into weekly shipments loaded and managed by DSV.
- Consolidation in to full container loads (FCL) both on site and for ships.
- Switch from 20’ to 40’ container.
- Direct trucking from the port to customer site, bypassing a previously needed deconsolidation point.
- Realised savings: over $1M in total sea freight spend within 12 months of implementation.