As we all know, the year 2020 has been very difficult and challenging for the logistics shipping sector. The COVID-19 widespread has adversely affected the industry, making a unused harbor and travel confinements for BEST FORWARDING AGENCY to bargain with. All of this detracts from profitability and puts additional pressure on operations, causing shipping companies to make difficult decisions, such as firing some employees or reducing trade routes.
The situation is made worse by the problem of relocating empty containers – an industry-wide problem caused by the aforementioned trade imbalances as well as long displacement times, high costs associated with secure storage. trade and commercial forecasts are unreliable, mainly based on the perceptions of local decision-makers and managers.
Solve empty container problem
When it comes to security stock, two fundamental variables are influencing the operation of a holder shipping line.
The to begin with is the broad utilize of manual arranging in Exceed expectations, which is broad but frequently leads to self-evident inefficiencies
By manually handling empty container logistics using Excel, the team makes decisions based on prior knowledge. Most shipping companies have enough containers to handle the potential surplus, so inefficiencies that are directly related to cost are inevitable.
The second issue is the need of perceivability related to these costs Whereas the operational group is capable for re-containing the holders, obtainment specialists are in charge of controlling the costs of the merchants.
This can lead to situations where the container shipping line knows the total amount paid to a specific supplier at a specific location, but the cause of these costs is not clear. Companies often don’t know exactly how many containers have been moved or why. In other words, the line suffers if the bottom of the company has to be moved, or at what price different suppliers can do the same because the people responsible for the logistics decisions are not always aware of the cost impact of the offer.
Safety stock cost
Basically, the solution to these both problems – manual scheduling tools like Excel, along with separation between logistics and budget teams – has been to keep safety stock close at hand. Local managers decide how many empty containers of each type to store in a specific location. , and these containers create three main types of costs: move costs, storage costs, and ownership costs.
As a result, more containers means more costs. Instead of continuing to operate at sub-optimal efficiencies, companies now have the ability to seek solutions with improved performance rather than increased container purchases.
Partnership for digital change
Our best forwarding agency provides a solution for the shipment of empty containers is Asset Metrics, which increases the utilization of logistics assets with three value levels:
Data cleaning, AI enrichment, and BI report These systems allow the automatic extraction of data from TMS systems, which in turn improves AI outcomes. Accurate overviews eliminate the need for Excel spreadsheets and improve the ability to measure historical performance and address inefficiencies.
Business optimization modeling: All related costs are analyzed again for strategic network optimization.
Prediction resource optimization: By predicting shopper behavior a few weeks in advance and taking into account internal and external variables, and real-time information, BEST FORWARDING AGENCY can incorporate predictions into their optimization models and be better positive. Allows you to make decisions.
Using this platform, logistics planning teams can compute the best and actionable global network plan for relocating, storing, repairing, and maintaining empty containers. , such as sorting, loading and unloading, and gate charges.
The future is driven by the shipping data
It is estimated that the improvements brought about by software tools such as Asset Metrics and platforms such as xChange have brought significant improvements to the logistics industry and clearing and forwarding company have not arrived at a more critical time. Approximately 30% of the $ 20 billion lost due to inefficiencies in container shipping will be recovered using technologies such as these.
These tools allow logistics planners to move away from manual updates and planning based on intuition, to analyze historical data, optimize predictive paths and, of course, reduce their reliance on safety stock.
Together with our logistics service company solution for relocating empty containers, these collaboration efforts can build a future-focused on knowing exactly when, where, and why containers are being transported – a significant improvement over previous tracking methods, and one which reduces costs at the same time as improving efficiency. in global logistics. To see this technology in action, request a demonstration of Asset Metrics today and see how our company can help your company achieve higher profits and greater transit efficiency.