The future of supply chain optimization
All you need to know about ocean supply chain visibility 2021
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Ocean Insights’ Report Warns of More Supply Chain Delays
The Chinese New Year is exacerbating COVID-19-related shipping delays outbound China. A new report from shipping technology firm Ocean Insights warns that a breakdown in intermodal connectivity between factories and ports could worsen global supply chain woes.
Metrics such as carriers’ schedule reliability are worsening and cargo rollover rates are still on the rise. By the former metric, the average delay for containers increased from one day in January 2020, to more than five days in January 2021. Ocean Insights is cautioning that it may take several more months for supply chains to return to some semblance of normality.
Ocean Insights points to internal travel restrictions imposed by Chinese authorities, requiring domestic travelers to quarantine for 14 days after traveling, as a new bottleneck for global shipping and supply chains.
“The shipping lines have said that the backlog of cargo will be cleared after Chinese New Year, and that will likely occur as the levels of deliveries from factories drop off, but supply chains may take several more months to return to some semblance of normality as inventory, now trapped further up the supply chain will need to be cleared,”Josh Brazil, Chief Operations Officer, Ocean Insights GmbH
Chinese governments are calling for citizens to stay put and “celebrate in place,” keeping factories open to offset the seasonal decline in factory output during the Chinese New Year.
However, even with new measures in place, getting those products to market will be a challenge. Most truckers have opted to go home for New Year — making them subject to mandatory quarantines and unable to drive. In some regions, up to 95% of truckers will be unavailable, with the worst-hit regions in the south.
These conditions will choke factory-port connectivity starting in about two weeks, with inventory backups lasting for months.
At ports, overall rollover percentages continued to climb as well, reaching 39%, a two percentage point increase on December numbers and a 9% year-over-year.
While overall rollover rates have increased, the major Asian ports in Singapore and Tanjung Pelepas saw no increase in rollovers, from December 2020 to January 2021, while Shanghai, Hong Kong increased by just 1 percentage point and Busan decreased 1 percentage point
Ocean Insights calculates the rollover ratio for carriers as the percentage of cargo carried by each line globally that left a transshipment port on a different vessel than originally scheduled.
Port Klang in Malaysia remains an outlier with an 11 percentage point increase in rollover cargo from 55-66% month-on-month.
In Europe, Antwerp and Rotterdam saw increases of 4 and 5 percentage points respectively within the Hamburg-Le Havre range.
Carriers’ Schedule Reliability
In terms of the number of changes to delivery dates (ETA), the Asia to US West Coast trade lanes showed the largest increase from an average of 1.67 ETA changes per shipment in January 2020 to 3.93 by January this year.
While Asia to Europe cargo ETA changes per shipment averaged 1.41 in January 2020, they increased to 3.13 a year later.
By these metrics, the average delay for containers increased from about one day in January 2020, to more than five days in January 2021. —Carriers’ Schedule Reliability is a measurement of delay from port to port.
Rollovers by Carrier
Vessel operators have so far had a mixed month with Maersk seeing a 5 percentage point increase in rollovers, reaching 38% while its alliance partner, MSC, has been static at 29% since November of last year.
CMA CGM, by way of contrast, has steadily increased its rollovers from 44% in October 2020 to 52% in January this year. While the biggest decrease month-on-month goes to CMA CGM’s subsidiary ANL whose rollover figures improved from 56% in December to 49% in January.
Will 2021 bring about recovery for global supply chains?
Over the years, the evolution of supply chains has time and again stressed the importance of being agile and flexible. Black swan events are reality checks for supply chains and their degree of resilience and future-readiness. With the onset of a crisis, businesses are forced to shut shop while others keep wading through the uncertainties. The burning question remains, whether the current economic crisis will be the driving force behind transforming global supply chain visibility models for good?
The COVID crisis had an adverse effect on global trade and the maritime industry faced the biggest setback in years. Sadly, it took a global health and economic crisis for the world to take note of the significance of logistics to keep the world economy relevant. With ocean shipments slowing down ports were crammed with storage requests of stuffed containers. The sharp decline in import and export, reduced demand for containers, increased turnaround times at ports, unprecedented fall in crude oil prices, cargo rollover, and blank sailing became common occurrences.
Adjusting to the new normal
Amidst the pandemic’s deterring effects, the industry adjusted to the new normal and started innovating solutions to support the ecosystem. Businesses turned towards technology during these times of crisis for respite and to pave a path towards the desired recovery. Thus, the need for evolving freight technology and digitalization gained momentum, with more players agreeing to the importance of robust IT infrastructure to ensure supply chain resiliency. Additionally, a collaborative approach towards supply chains became a necessity. A manpower intensive industry, highly dependent on-field operations remarkably adapted to remote working norms while the frontline workers continued working hard to make essentials available to the masses. Technological innovation didn’t stop and increased investments in evolving tech platforms became a noticeable trend.
In a bid to support shippers and freight forwarders, Ocean Insights extended its dynamic database of blank sailings at no additional charges. This extensive database helped combat the challenges of matching the vessel supply to demand for shipments and was made available to all through email updates. Zim launched e-bills of lading to expedite freight during the crisis and Evergreen launched GreenX, a digital platform to offer instant quotes and eBookings. The DCSA consortium announced a partnership with Chain.io in an attempt to develop track and trace APIs that connect carriers, shippers, and forwarders. It also published guidelines on compliance with the IMO cybersecurity requirements. Meanwhile, Standard Chartered Bank became the first commercial entity to join TradeLens, the interconnected ecosystem of supply chain partners backed by blockchain technology and the members of CargoSmart-led Global Shipping Business Network signed a shareholders agreement.
Container lines received state financial aid and freight rates have remained relatively stable since the pandemic due to various other reasons such as blank sailings and reduced fuel prices. Maersk reported a 20-25% drop in lifting in the first quarter. BIMCO stated there has been a 16.9% decline in year-on-year volumes in April. According to reports from Drewry, June witnessed an increase in spot freight rates on the major trade lanes. Container shipping alliances played a major role in these unprecedented times through a disciplined approach and avoided cutting rates to fill ships and instead focussed on strategic blank sailings.
Top Reasons Global Supply Chain Managers Fail to Reduce Ocean Freight Costs
Proactive management of ocean freight costs remains a cloudy goal for shippers. Without a careful eye on the factors influencing freight rates, a supply chain manager will see a gradual, if not sudden, rise in ocean freight costs over the course of 2021 …
“The recession this year will likely be more severe, and recovery in 2021 will be slower than we anticipated”.Gita Gopinath, Chief Economists, International Monetary Fund
The Path to Recovery for supply chain management
While it’s not possible to make long-term forecasts given the uncertainty governing global trade at present. However, what is certain is the fact that the path to recovery is not going to be uniform with every industry adapting to the new regime differently at different paces. Healthcare and FMCG are the main industries facing evident challenges in logistics and in constant need for innovation to drive supply chains to meet demand. Therefore, the recovery in these sectors is expected sooner. Power generation, the automotive industry, aerospace manufacturing are a few sectors that may remain entirely immune. The automotive industry might even see a surge in demand for autonomous vehicles. In terms of logistics, road transportation has been at the forefront during the crisis whereas ocean or air freight have been more severely affected by the pandemic and may take longer to recover.
According to Lloyd’s list, there is an estimated positive growth in the dry bulk sector as capesize rates keep rising. However, container volumes are most unlikely to return to a normal level anytime before 2021. The crisis has accelerated the decline in the growth of demand for container shipping which reflected in how liners have effectively removed capacity to manage otherwise over-tonnage scenarios. The recovery trends for crude and product tankers are on the positive side owing to reduced fleet growth and low order book through 2021. As per Lloyd’s List Intelligence, the net fleet growth forecast for product tankers is estimated to be 1.9% while that of crude tankers is 2% in 2021. Meanwhile, the market for dry bulk trade is expected to decline to 2.1% CAGR till 2024. In another report by Drewry, it has been stated that charter rates for breakbulk and heavy lift vessels are unlikely to recover back to pre-COVID-19 levels until the end of 2021. It further states that as a base scenario if the global pandemic is contained in the coming months, dry cargo demand is expected to rebound in 2021.
On a global level, estimated year-on-year growth of 17.6% is expected for the logistics market at USD 3215 billion post-COVID-19. The major focus of this growth will remain on the continued supply of essentials and building supply chain stabilization initiatives. However, the factors that may hinder the recovery will be an acute shortage of labor, limited availability of COVID-19 testing kits, and ensuring that the available workforce adheres to safety protocols amidst a global pandemic.
Gita Gopinath, Chief Economists, International Monetary Fund said in a recent statement, “The recession this year will likely be more severe, and recovery in 2021 will be slower than we anticipated”. She further stated that the maritime industry will be severely impacted. Although most of the countries are in recovery mode with international border restrictions being eased, the chances of normalcy being restored in early 2021 are quite unlikely.
However, increased digitization and technology investment can be seen as an impetus towards building more robust and agile supply chains. Trends in adopting visibility solutions, robotics, artificial intelligence, machine learning, blockchain, and other advanced technologies in freight and shipping will dominate the path to recovery. While the bullwhip effect is going to govern the post-pandemic era of normalcy, businesses will have to resort to a collaborative approach towards the supply chain where visibility-data integration and standardization will play an important role. With the given industry standards there seems to be a lot of catching up to be done in adopting the technologies that we discuss at large. For now, addressing the very critical need for knowing where the cargo is at any given stage across the supply chain requires better visibility solutions for all stakeholders.
With advanced Track and Trace functionalities of Ocean Insights transparency can be induced into the system. With consolidated real-time shipment data available on a single platform that generates predictive analytical insights, a more resilient supply chain can be expected and delivered.
A Look at the Future of Global Supply Chains
Global Supply Chains are undoubtedly going through some of the most radical changes in decades. What once used to be the heart of globalization – the process by which raw materials, parts and components are moved across multiple national boundaries by land or by sea, before being made into finished goods – is facing an uncertain future! But first of all, the success story.
From 1990 to 2010 global trade boomed on the back of tariff cuts, cheaper communications and lower transport costs. The Organization for Economic Co-operation and Development (OECD) reckons that 70% of global trade is now tied up with increasingly complex global value chains. Retailers in Europe and North America built up networks of inexpensive suppliers, especially in China. Multinational corporations extended their supply chains in the search for cheap labor and globalized economies of scale. Lean inventory management and just-in-time deliveries were just two of the key concepts implemented to enhance efficiency and improve cost management. But there are now signs that the seemingly unstoppable pace of globalization is slowing down – or worse. According to OECD estimates, global trade growth has slowed from 5.5% in 2017 to 2.1% this year. Cross-border investment fell by a fifth in 2018. Global regulatory harmonization is giving way to national or regional approaches. And, China is no longer the cheap manufacturing country it once was, as wages have risen significantly and stricter environmental laws are biting.
Besides the political conflicts typified by President Trump’s tariff war with China or Brexit, the rise of e-commerce giants such as Amazon and Alibaba has radically changed consumers’ view of the market place and their buying habits. But the biggest revolution is undoubtedly on the technology front. Artificial intelligence (AI), Predictive Data Analysis and Robotics are already transforming manufacturing industry and its distribution and delivery chain. In the future, 3D-Printing, Blockchain technologies and Autonomous vehicles could have a similar far-reaching impact. Last but far from least, cyber-attacks from either private or state-sponsored hackers may well pose a serious threat to supply-chain security.
We’re safe today because we never had any data problems in the past …
Digitalization (or Digitization) is expected to have just as serious an impact on supply chains as the first and second industrial revolutions did on manufacturing. Although a relative latecomer to global supply chains, and particularly the seaborne ones, digitalization will make supply chains smarter by increasing their predictability, transparency and speed of delivery. Cognitive Analytics and AI are just two of the factors that will no doubt make supply chains more predictable.
In the surprisingly opaque world of seaborne supply chains, sensors and big data capabilities will enable increasingly sophisticated track & trace services so that multinational shippers actually know exactly where their goods are at any point in time. IBM and Maersk, for example, are using blockchain technology to digitalize shipping processes and make them more transparent.
In today’s riskier world of global supply-chain management, companies desperately need to become more data security-conscious and guard against cyber-risks. The mindset of “we’re safe today because we never had any data problems in the past” can open the door to an existential threat to a company’s business. But waiting for the current storms in global supply chains to pass is definitely not a sound strategy. The key to successful supply chain management now and in the future is a realistic assessment of existing strengths and weaknesses. Without a doubt, Data Transparency and Data Security are two areas where nearly every global supply-chain player can improve its performance.
At Ocean Insights, we consolidate and evaluate data from multiple sources to help logistics teams all around the globe to stay on top of things, whether for day-to-day operations or for strategic decisions. Our primary aim is to help our customers to succeed by enabling full inventory visibility through outstanding container tracking web service and software.
To know more about our solutions, get in touch with us, today.
Supply-chain visibility in the time of COVID-19
The worst economic crash of all times – greater than the Great Depression! What took three years from 1929-32 has happened in three weeks. It’s still too early to quantify the depth of the upcoming global recession but leading economists are sure of one thing: the coronavirus has sent the global economy spiraling downwards.
Lowest oil prices for decades
The price of crude oil has plummeted to its lowest level for nearly 20 years. The dispute between Saudi Arabia and Russia, Saudi plans to up its oil production, and the worldwide fall in demand – noticed how quiet roads are? – have hammered the global oil market. The dramatic fall in fossil fuel consumption is undoubtedly good for our climate in the short term, but the longer-term impact of the many enforced oil rig closures could prove negative for ocean shipping. After all, oil wells cannot simply restart production as, for example, an automotive or mechanical engineering plant can. According to Goldman Sachs the shutdown of oil wells has already taken nearly 1 m barrels a day from global production levels, and this figure is expected to rise as producers run out of storage space for unused oil. Yet once the global economy starts to recover from the corona crisis – and economists are predicting a sharp upswing either this year or next – the current drop in oil production capacity would result in a very fast trend reversal to oil shortages and a related price hike.
The operational necessity for advocating end-to-end visibility within chemical supply chains
Chemical supply chains had enjoyed a period of relatively stable growth for nearly a decade, ever since the economy picked up after the ‘08 financial crisis. Last year saw global supply chains screeching to a halt, as cities went into lockdown and fleets were forced to ground on account of the pandemic.
Global supply chains badly hit
The socio-economic disruption caused by the coronavirus pandemic is also having far-reaching impacts on global supply chains – especially, but no longer solely, those originating in China. Seaborne trade, which is responsible for the lion’s share of global trading volume, has been badly hit, as blank sailings statistics reveal. Ocean Insights counted 386 blank sailing announcements between mid-March and the end of April, an unusually high figure. Ocean carriers have responded by replacing large-volume vessels with smaller ones to adjust to these lower trade volumes. The measured vessel capacity (in TEU) across major carriers has seen a decline of 23% from mid-January to mid-March in Asian trade lanes alone.
Another disruptive influence on global seaborne trade has come from the widespread firm closures triggered by governments’ lockdown policies. The Port of Hamburg, for example, was recently reported to be running out of space to store incoming containers due to recipient company closures. Container logjams in seaports are yet another complicating factor for global supply chains.
Supply Chain Software – a competitive advantage
In a recent YouTube blog, Christian Titze, Research Vice-President, Gartner Supply Chain Technology, pointed out that supply chain visibility is more essential than ever. It is, he says, the basis for better and more robust decision-making as it enables companies to respond more quickly to disruptive bottlenecks, such as those caused by the corona crisis, and possibly even to avoid them.
But how do you achieve supply chain visibility? Ocean Insights’ Container Track & Trace (CTT) tool enables customers to know where exactly their container is and when it is likely to reach its port of destination. If that seaport were Hamburg with its current container logjam, the kind of real-time information CTT provides would allow a shipper to consider rerouting a container to a different port where it could be transshipped without delay. In these disruptive days reliability and punctuality in the supply chain are much-appreciated factors. If you’re a supplier, visibility adds up to a key competitive advantage in the corona crisis.
We’re also having a 30-day FREE trial of our new Schedule Visibility Package which includes an all-in-one blank sailings, service network explorer, vessel schedules and port-to-port schedules planning tool.
Survey: 42% of Shipping and Freight Professionals want to Change Their Supply Chain Strategies Post COVID-19
A recent survey that was answered by over 300 Shipping and Freight Professionals across the world, brought out some key indicators that will inform the future course of global supply chains. One of the most important trends unearthed was the readiness to change supply chain strategies (42.5%). Additionally, answers and a large number of comments on the survey questions point to the overall adaptability of the industry and that we can expect a renewed surge in the demand for technology solutions, with 67.6% of the survey takers indicating they will invest in technology.
Global supply chains and shipping as we know them will be different from how they worked for decades. Navigating around and through the COVID-19 situation has left us all in uncharted waters, with 59.2% of responders indicating their operations were significantly affected, rocking the foundation of even the most stable businesses. However, sharing information and understanding best practices will enable the industry to come together and combat this as a whole. If there was ever a time for collective efforts, it is now.
With this intent, the survey, conducted by Shipping and Freight Resource and sponsored by Ocean Insights, the Ocean Freight Tracking System provider, was designed to measure the effect of the coronavirus pandemic on global supply chains. It collected and analyzed data on three key aspects – Impact, Preparedness, and Recovery.
The survey was answered by Carriers, Logistics Providers, Freight Forwarders/NVOs, Consultants, Shippers/BCOs (95.7%) and other (4.3%) industry professionals across job levels – C-Level, Director/Top Management, Middle Management, and Operations.
This is what the industry said –
59% of survey takers said that their operations had been significantly affected. 25% were moderately affected while 14% were ‘somewhat affected’. Only 1% maintained they were not affected while a negligible number stated they were unsure.
Survey participants were asked to check multiple options with respect to affected operations. 70% experienced volume decline, 61% were hit with transit delays, 50% with delays from port to customers and 40% with lack of capacity.
Furthermore, based on additional comments, operations suffered from other factors such as, “late or non-payment from clients, cancelled credit lines from physical carriers”, “inconsistent volume demand” and “increased costs”.
With respect to communications with their shipping and supply chain partner, 35% experienced delayed communications while 10% stated they received scarce communications, while 4% were unsure. The majority (51%) were receiving real-time, ongoing communications.
54% stated they were somewhat prepared, 35% were not prepared at all, 7% were completely prepared and 3% were unsure.
When quizzed about adaptability, 37% stated that they experienced a partial supply chain shut down with significant freight delays. 36% had a few glitches that delayed freight by a few days, 14% stated the supply chain was able to adapt with no problem, 4% were unsure and 9% experienced a complete supply chain shut down.
Through this data, it is established that the supply chain has had to adapt to the ongoing crisis. 92% of survey takers experienced some disruption but managed to adjust to it in varying degrees. This points to the fact that there was some flexibility built into global supply chains and shipping operations. However, it might be imperative to look at the best practices of those (14%) that seamlessly adjusted to this unprecedented situation.
About their shipping and supply chain partners, 55% stated their partners were somewhat prepared, 32% said they were not prepared, 9% stated their partners were fully prepared and 4% were unsure.
A whopping 42% of survey takers said they would change their shipping and supply chain strategy based on their experience with the Coronavirus pandemic, 29% said they may change their strategy, and 29% said they would not.
Survey takers expressed they would invest in technology (67%), employees (33%), assets (26%), acquisitions (13%) and other aspects (12%) as part of their recovery efforts post the pandemic.
The felt need for technology solutions was echoed by a large number of survey takers who said:
- “Need improvement in terms of transparency and flexible supply chain to allow change based on realtime events/impacts”
- “Logistics still needs to undergo a technological transformation (long queues at the European borders this month highlighted again the lack of visibility during transport and lack of reliable ETA).”
- “Even though we are already online in most of [the] activities, we will still need to enhance our IT capabilities.”
- “More online remote procedures to be included. manual processes to be seriously looked into for alternatives.”
- “Integrate more digitized workflows”
- “Technology upgrades, work from home capability and preparedness are needed”
- “We hope [after the pandemic] to invest in technology to deliver and match our customers’ requirements”
As the present indication for the future, a majority of the survey takers expect to recover from the hit they have taken due to the pandemic. They were given multiple options to gauge how the recovery from this would be. Only 2% expect not to recover. 43% expect a slow recovery, 38% a moderate recovery, 19% a fast recovery and 3% were unsure.
It is realistic to expect a slow recovery from this pandemic, considering the major hit that the global economy has taken. However, we expect technologies to play a crucial part. The unusually high number of comments (over 200) by the survey takers strongly reinforced this.
There is a call for –
- “more online remote procedures to be included”
- “improvements in terms of transparency and flexible supply chains to allow change based on real-time events/impacts”
- “better manpower management systems”
- “development of the greater route and mode options for ocean and hinterland transport”
- “better forecast predictions”
- “enhancement of IT capabilities”
- “integration of more digitized and paperless workflows”
- “implementing eBL”
- “creation of tools to anticipate disruptions”
- “the introduction of automation”
These were just some of the opinions, expectations, and new world views the participants had. While the new normal is something that we will all have to get used to, it is refreshing to see that the industry is not down and out but accepting of the hit that it has taken and ready to take the required actions to bounce back stronger and more secure than ever before!
About Shipping and Freight Resource: Shipping and Freight Resource started in 2008 as an educational resource for industry professionals. In time it has become the definitive online resource for Shipping and Freight information providing educational and marketing solutions to the freight industry along with industry news and executive insights about Shipping, Freight, Logistics and Supply Chain.
About Ocean Insights: Founded in 2012, with offices in Europe and Asia, Ocean Insights is a leading ocean supply chain visibility provider that supplies real-time tracking data and market intelligence for the logistics industry to improve supply chain visibility and transparency in ocean freight.
How Ocean Insights Helped Goody See Their Supply Chain
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 Supply Chain Visibility
“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, … 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.”Mohammed I. Ismail, Corporate Logistics Manager and Dubai Site Leader for Goody Corporation
“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.
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.”
How Does Ocean Insights Help to Manage Costs?
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.
Learn more about this topic and how to reduce costs
Why Companies Need Supply Chain 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.
“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.
Ocean Insights and Pernod Ricard: A Success Story
Ocean Insights and Pernod Ricard recently presented their Albatross Ocean Freight Visibility Project at the ROI 2020 in Paris where it was one of the finalists in the Kings of the Supply Chain competition. The Albatross project based on Ocean Insights’ Container Track & Trace (CTT) tool is helping to optimize Pernod Ricard’s global supply chain involving 202 users and 25,000 containers transiting the world’s oceans to serve customers in more than 80 countries.
Until now, our customers had no visibility of their containers until they were contacted by the shipping company.Mats Eriksson, Supply Chain Manager – The Absolut Company
Besides offering real-time monitoring of all Pernod Ricard’s shipments (regardless of the carrier), the CTT tool centralizes all the relevant information on a single dashboard, facilitates flow control to optimize transport and stock management, and makes analysis of KPIs possible for ongoing process improvement. Thanks to this new level of visibility, Pernod Ricard is also laying the groundwork for more sustainable ocean freight transportation as the available data enables the carbon footprint to be measured and emissions on the various routes taken compared.
Mats Eriksson, Supply Chain Manager of The Absolut Company, one of the Pernod Ricard Group’s main brands, explains what he gets out of Ocean Insights’ CTT solution: “Until now, our customers had no visibility of their containers until they were contacted by the shipping company. This was not satisfactory. Now we have a good overview of what is in transit. We receive alerts if a container is stuck or late, and can contact the shipping company to inform our client before delivery.”