Optimizing the inbound Supply Chain
Introduction: Bestshore has identified an opportunity for Container Terminals to achieve significant bottom-line improvement by reducing unnecessary yard shiftings for import containers. This opportunity and the benefits identified have been based on actual findings in an Asian Port.
OISC has as its primary aim to eliminate unnecessary yard shiftings in terminals for im-port containers and to improve the logistics information flow between the different stakeholders in the inbound supply chain. This will be achieved by dynamically manag-ing the flow and planning of import containers in a more proactive manner before and after discharge from vessel.
The name of this solution is called “OISC” - Optimizing the Inbound Supply Chain which is undergoing business case approval with subsequent development to start in Q2 2016. .
In almost all container terminals around the world random stacking is used to place import containers in the yard. It is therefore normal practice that termi-nals have to accept a relatively high number of yard shiftings in order to dig out im-port containers for random delivery to consignees. OISC enables Terminals to reduce yard shiftings in import stacks significantly by going from random stacking to intelli-gent stacking of import containers.
Few shipping lines recognize today that collaborating with container terminals in real time by reaching deep into the logistics chain will enable container terminals to achieve cost savings and improve revenue which would otherwise not be possible.
The OISC solution provides full visibility of the inbound logistics information flow as it touches the different players in the logistics chain. OISC will continuously be updated with dynamic supply chain data (e.g. status updates from gate appointment system, customs release, cargo put on hold etc.)
How will it work?
OISC will be integrated with Navis Sparcs N4. This means that the decking of import containers will be based on predicted dwell time information. While OISC will use a method of predicting the dwell time for import container before vessel arrival, actual logistics data will be used as we get closer to the time of vessel operation. The approach is that information regarding next modality, when it be-comes available, should always overrule the predicted dwell time (e.g. if the trucking company of the import customer has updated the gate appointment system with a specific appointment pick up date and time then there is no need to calculate the dwell time for this container).
The business potential is significant. Based on actual data from a container terminal in the Asia Region the annual savings potential is in the region of USD 1.8 Mill for a high labor cost terminal. Additionally OISC will enable container ter-minals to introduce new revenue streams, improve services to Lines and local import-ers and reduce CO2 emissions.
The savings are realised in the following areas:
- Minimize any unnecessary yard shiftings in the import stacks.
- Reduce overall distance travelled for CHEs in the handling of import containers.