Optimizing the Outbound Supply Chain
Bestshore has identified an opportunity for Container Terminals to achieve significant bottomline improvement through on-line collaboration with stakeholders in the outbound supply chain.
The name of this solution is “OOSC” - Optimizing the outbound Supply Chain.
OOSC enables container terminals to achieve significant cost savings through real time collaboration with key stakeholders in the outbound supply chain. OOSC further enables introduction of four new billable services for the customers of Container Terminals.
Based on a recent consulting study in an Asian Port it has been shown that operational efficiencies in ports are impacted negatively by lack of and frequently changing logistics data from Lines and exporters.
The study showed that late gate, change of vessel, change of destination and other status changes has a much bigger impact on the bottom line in ports than most ports realise. Most people in the ports industry think of this as “cost of doing business” - few realise the significant and direct impact that frequently changing logistics data have on the bottom-line of container terminals. Through closer interaction with Lines it is possible to achieve significant operational savings, increase revenues and ensure better capacity utilisation in container terminals. The Lines will also reap substantial benefit through improved capacity utilisation of ships and improved logistics flows. The benefits attainable from OOSC can only be realised through sharing of logistics data and therefore some terminals may consider returning part of the cost savings achieved though gain sharing arrangements with their key Liner customers.
The OOSC solution will provide full visibility of the outbound logistics information flow as it touches the different players in the outbound supply chain. OOSC will continuously be updated with dynamic supply chain data (e.g. status updates from gate appointment system, customs release, cargo put on hold etc) thereby enabling the vessel and yard planners to take into account real time logistics information.
The business potential is very significant. Based on actual data from a container terminal in Asia Region the annual savings potential plus the new revenue streams exceed USD 1.2 Mill for a relatively small 800K TEU high labor cost terminal.
The savings are realised in the following areas:
- Minimize any unnecessary yard shiftings in the export stacks. This will be achieved by dynamically managing information on exports in a proactive manner before and after the export container has been gated in.
- Improved revenues from Lines by identifying at detailed level activities in the outbound logistics which are not cost compensatory. OOSC will introduce more strict compliance with business rules in the ports and will capture all non-compliance events.