A global business

A global business switches to rail

3/23/2023

It also had a network of suppliers across more than 20 different countries. Their disparate production and assembly set-up meant the customer needed to find a cost-efficient and reliable transport method that would ensure a consistent flow of product from suppliers to the production and assembly sites.

Our customer's business challenges

The customer consistently used airfreight as their primary transportation mode and given its high cost, it was proving uneconomical and an alternative solution had to be found. The new solution would have to provide cost savings, regular traffic flows, and ensure reliable supply from suppliers to the production an assembly sites.

TRANSFORMATION STORY

Our key actions to meet our customers' expectations :

Working in tandem with the customer we created an agile and flexible rail intermodal solution tailor-made to their needs. A new program with guaranteed transit times for Door-to-Door shipments covering 1000+ supply to production point to point lanes was created.

A simplified price tariff covering weight based local pick ups and delivery charges combined with a single CFS to CFS price per lane was devised.

To support these new solutions, a dedicated, trained Customer Service team was set up in key locations with ownership of the program execution.

TANGIBLE RESULTS

VOLUMES

50,000

cubic metre of LCL shipments annually

ON-TIME DELIVERY

>95%

shipments Delivery in full on time (DIFOT)

THE RESULTS

The customer has experienced significant overall savings through our plan to use FCL over Airfreight. By introducing much more flexibility in selecting suppliers, the costs of both procurement and transport have been reduced.

At the same time we have reduced the need for safety/buffer stock (goods can be shipped immediately – the customer doesnt have to wait to fill a container)

We have also reduced incidental and program administration costs. Among the key statistics achieved are: >95% of shipments DIFOT (Delivery in full on time), 50,000 CBM LCL. Annually, we handle an average of more than 400 point to point lanes on a weekly basis for the customer.