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Ocean Carrier Network Reduces Container Movement Costs for Better Street Turns
Technology Category
- Functional Applications - Remote Monitoring & Control Systems
Applicable Industries
- Marine & Shipping
- Transportation
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Fleet Management
- Predictive Maintenance
- Supply Chain Visibility
Services
- System Integration
- Software Design & Engineering Services
The Challenge
Maintaining control of its containers is a costly and challenging concern. Besides the cost of the container itself, simply moving a container costs money — whether it is full or empty. After being unloaded, the best practice is to reuse import containers for export shipments as quickly as possible to save time and money on two empty runs. When immediate reuse cannot be coordinated, the carrier must coordinate with a third-party trucker or rely on the shipper to schedule a trucker to return the container so it is available for outbound moves. This is a manually-intensive task that cuts into profit margins. The carrier network’s massive inventory of containers and the expansion into new regions made its leaders realize they needed better control over this expensive equipment. With teams all around the world managing empty equipment, it became essential for the organization to reduce inefficiencies caused by the inability to efficiently pair empty import containers with nearby shippers for exports.
About The Customer
Recently, numerous major shipping lines consolidated to form a single massive shipping network. The resulting holding company set up business operations in Asia and, today, boasts a fleet of over 200 vessels, including some of the world’s largest ships. The carrier network is now one of the largest in the world, covering over 120 countries and offering regular service to every continent except Antarctica. Operating at this scale requires significant investment in equipment, most notably the standard twenty-foot and forty-foot shipping containers used by ocean carriers. This carrier network manages over 1.5 million of these containers with a value of approximately $3 billion.
The Solution
The company chose to leverage e2open Equipment Management to synchronize import shipments with export bookings and streamline container logistics. As a result, the carrier can automate the identification of incoming containers that could be reused for export bookings nearby. E2open’s automated matching algorithm uses the carrier network’s own import, export and location data to plan street turns, container reuse or depot drops and returns. Without this automation, its land transportation coordinators have to manually search and align shipments, then schedule a trucker to handle the job. After the implementation, planners can digitally balance container inventory between depots with visibility into future export bookings. They are also able to schedule truckers at a “spot” rate that is often cheaper than contract terms. These combined capabilities would not only make overall operations far more efficient but also reduce costs and enable better utilization of the network’s assets.
Operational Impact
Quantitative Benefit
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