Case Study: Cargo Management for a Major Office Supplies Producer
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Reduced by 87% & 20’ use by 68% (against a 4.2% increase in overall volume of goods)
Charges reduced by over 90%, down from over USD 1 million the previous year
SPARX was posed with the challenge of enhancing the client's P.O. and SKU-level visibility over a global supply chain network; including a sizeable Asian vendor network as well as four (4) U.S. distribution locations and one in Canada. By increasing visibility the intention was to reduce the many unforeseen and unwelcome logistics expenses the client had been accruing (demurrage, per diem, bobtails, excessive domestic repositioning, and imports of less-than-containers (LCL)).
*As a byproduct of achieving these two goals, SPARX and the client also set as a goal to reduce excess emissions that resulted in lack of asset oversight & efficiency .
To streamline visibility and reallocate space in the client’s budget towards ocean freight, SPARX, as the principal logistics services provider, focused on consolidating the client’s freight forwarding, compliance, and cargo management responsibilities. These areas were streamlined via SPARX’s online booking module SKU and P.O. management for purchase order scale visibility, vendor management and production follow-up.
SPARX extended supply chain visibility by consolidating upstream and downstream customer-specified events and milestones captured from container release at origin through empty return at the destination. SPARX has extended this conventional supply chain visibility through the provision of simple platform architecture, holistic pricing structure, and cloud-based global access.
SPARX also established quarterly, then monthly business reviews to assess KPIs, define future objectives, and evaluate development opportunities. Its top-tier Hong Kong-based development team has created and maintains customized reporting, KPI dashboards, benchmarking integration, and milestone exchange with the customer’s internal team.
Regarding the issue of social challenges involving environmental pollution and sustainability, SPARX is looking into ways to monitor and lower CO2 emissions using innovative technology tools. The company is also looking into creative ways to be more sustainable, such as ensuring truck tires are correctly inflated to cut down on energy output and unnecessary emissions.