Lack of reliable logistics for odd-sized shipments
The company provides integrated 'design to build' solutions for large and complex hydrocarbon projects. Being a large-scale project-based operation, no inventory was maintained for high value, odd shaped, over-sized, over-weight materials. Company used to pick up material from suppliers closer to the requirement at project site. Consignments were picked up by multiple local logistics partners through manual coordination on specifications, rates, delivery TAT. As most of the project sites were not easily accessible for consignment deliveries, quality of logistics was the most crucial element in their supply chain. The major challenges faced by the company were:
Logistics partner with capability to handle special consignment, provide technology integration and faster reliable delivery
One of the company's logistic partner had a capability to handle special consignments and deliver at faster TATs.
Timely completion of projects helps builds credibility and attracts new orders. Additionally, due to the high value of consignments, quality of logistics (lower damages) impacts profitability and timelines. The company wanted to structurally solve for special consignment movement to be able to claim future projects.
Consolidate to a single reliable logistic partner with tech integration for smooth flow of consignment specification and right material handling process
Company joined hands with a logistics partner with capability to manage the requirements efficiently. The logistics partner provided the technology to better manage complete order cycle, starting with precise communication about specification of the shipment at the time of placing the pickup request. Basis the inputs received from company; logistic partner makes customized arranged for pickup with right resources like
- Tools and equipment like cranes and forklifts
- Manpower required for loading/unloading of shipments
- Type of vehicle required for first and last mile movement
Robust material handling processes of logistic partner resulted in minimizing damage and eliminated risk of stockout
Integration between logistic partner and company's system also ensured transparent tracking and control over movement of consignment.
Lasting business impact
The company now completely equipped with moving crucial project shipments faster, was able to meet project schedules. Their spend on damages also reduced, since suppliers of the company were satisfied with the way their material was handled and delivered.
The business impact that the supply chain team was able to deliver was:
Today it delivers on all project schedules. And provides an enhanced customer experience and improve its profitability.