In this unprecedented time, hampered by the pandemic, trade wars, and an increasing number of natural disasters, technology is making all the difference in keeping supply chains afloat.
The need for supply chain visibility has moved to the top of priority lists for all leading supply chain managers. It provides them with more business opportunities and also, affects significant cost savings. It creates a holistic view of supply chains and allows a better understanding of global operations down to a granular level.
Ocean Insights was invited to participate in a live webinar with one of our esteemed customers, the Goody Corporation – an industry leader in Saudi Arabia. During our conversation with the hosts, we were able to discuss and explain to viewers why visibility was so important and how Ocean Insights was able to add immense value to Goody’s supply chain operations.
“Working without the correct visibility on your supply chain is just like crossing the highway where you cannot see what’s in front of you.”Mohammed I. Ismail, Corporate Logistics Manager and Dubai Site Leader for Goody Corporation
Why is Visibility Critical in the World of Ocean Freight?
Ocean freight, more than any other mode of transportation, is susceptible to problems and obstacles. Some of these are long transit times between point of loading and unloading, numerous touchpoints, and stakeholders, not to mention disruptions caused by the pandemic or extreme weather conditions, which make any global supply chain operation vulnerable. To tackle these challenges head-on, shippers need visibility that allows them to proactively deal with problems rather than respond reactively. Every leading supply chain manager should be able to answer the following questions:
- Am I able to accurately help my customers with accurate arrival times?
- Am I able to judge my performance index with the industry benchmark?
- Am I able to optimize my warehouse space and working capital investment?
- Am I able to optimize my freight spends?
The answer to these questions is essential for running a successful business and can be arrived at through improved visibility.
Goody and Visibility
“To be quite honest, visibility is a no brainer. It’s something that you require,” says Mohammed I. Ismail, the Corporate Logistics Manager and Dubai Site Leader for Goody Corporation. “Working without the correct visibility on your supply chain is just like crossing the highway where you cannot see what’s in front of you.”
Ismail says that visibility lets Goody make the right decisions quickly. “When you have that visibility, you know what kind of decisions you have on the table, and you can very quickly get this data and make the right decision,” Ismail says. “One of the other things that visibility helped us with, specifically at Goody, is in the supply chain planning part. So we were able to reduce inventory because we started having much more accurate readings on the transit times and other supply chain parameters.”
How Does Ocean Insights Help to Manage Detention and Demurrage Issues?
Detention and Demurrage are some of the biggest issues that shippers and freight forwarders have to deal with in the ocean freight industry. For many companies, anywhere from 20 to 30 percent of their annual spending goes into these penalties. For companies lacking visibility, it can lead to a helpless feeling, and so, they end up paying the fees and taking the hit to their profit margins.
Ocean Insights allows companies like Goody to follow their shipping containers and know where they are and how long they’ve been there. Ismail uses this feature and creates alerts to let him know if a container has been sitting somewhere for longer than it should. That level of visibility allows him to keep track of all the moving inventory in his supply chain and intervene when necessary to avoid Demurrage and Detention charges.
Ismail adds, “The best thing is that it drives actionable data. It’s not just about sharing data or, or creating numbers. It’s about actionable data, and it couldn’t be more actionable than it is today.”
Why Companies Need Visibility Now
Although the global pandemic will eventually burn out, business and political environments will keep changing. To be more prepared for future-disruptions, companies need to get visibility on board now and have their solutions and practices in place.
For Goody, that Visibility Solution was Ocean Insights. Ismail offered a few reasons why he knew that Ocean Insights would be a good fit for Goody.
“So first of all, I knew right away that the ROI would be great.”Mohammed I. Ismail, Corporate Logistics Manager and Dubai Site Leader for Goody Corporation
Ismail was able to calculate that Goody could net significant (“7,225%”) ROI from Ocean Insights in just a few months, mostly by avoiding detention and demurrage charges.” This estimated ROI is based on both direct and indirect cost savings arising from supply chain interventions as well as savings accrued from reduction of both detention and demurrage charges and fees.
What’s the ROI of an Ocean Freight Tracking System?
As a shipper, forwarder, or beneficial cargo owner (BCO), you know you need reliable visibility of your shipments. With so many different data sources, having an Ocean Freight Tracking System (OFTS) is vital.
How to effectively manage demurrage and detention costs through free time optimization
To many customers around the world, demurrage and detention represent some of the most expensive costs that they will incur in the process of a trade transaction. Do you know the benefits of an Ocean Freight Tracking System?
“The second thing was the features of Ocean Insights – like the automated reports, which saves us a lot of time.” Ocean Insights allows Goody to set alerts in three stages, a general alert, high alert, and critical alert. There are also convenient real-time tracking tools that allow Goody to see where containers are and quickly report that information to where it’s needed.
“And finally, it’s the only platform that I saw that is integrated across different sources, which made me very confident about the data I’m getting in.”Mohammed I. Ismail, Corporate Logistics Manager and Dubai Site Leader for Goody Corporation
Ocean Insights offers benchmark data, which lets Goody compare historical data to present data which can help Goody see if a particular sailing is going to be blanked, leaving them enough time to find an alternative.
Would you like to know how Ocean Insights can help increase your visibility? Want to know about how Goody saw a massive 7,225% ROI in just a few months after implementing Ocean Insights into their daily operations? Want to know how you can set customized alerts to help you avoid detention and demurrage fees, or how you can better predict freight volumes so you can lower your inventory levels? Please visit us here to watch the Webinar and read the Ocean Insights White Paper on Visibility.