Our automotive experts reduce transportation costs through supply chain process analysis
Our automotive client, a leading manufacturer of truck components for assembly and aftermarket application, admitted that experts were needed to analyze their existing transportation processes in search of cost reduction improvements in their international supply chain shipments from overseas suppliers.
The automotive client’s trade lanes from Europe and Asia into America were being shipped in ocean containers from their supplier’s door to door. The client requested improved transit times and increased reliability of the transit routes as a priority. Cost reduction was of high importance as detention and demurrage were frequently impacting the costs of their existing shipping solution.
The Crane Worldwide team identified several areas where improvements could be made to the shipping process in line with the client’s priorities. The solution proposed was to terminate the shipments at the arrival port, transfer the material at Crane Worldwide’s local facility from the ocean container to domestic equipment and subsequently deliver the content using Crane Worldwide’s extensive internal network and equipment in the USA.
“Working in partnership with our clients and identifying challenges, enables our automotive team to provide cost-effective solutions.”
Results included over $600k in cost savings by eliminating demurrage for containers being held at the port that was waiting for delivery. Additionally, detention fees were also removed for ocean containers and chassis while waiting for delivery. Delivery charges were significantly reduced as domestic equipment was being used instead of ocean equipment. Furthermore, future operational improvements will be made to reduce the number of local deliveries by combining inbound shipments on a single trailer with the opportunity to save an additional 25% on inland deliveries.