To build on this proposition further, they need to strengthen their existing transload programme in their two largest markets of Southern California and the Northeast US.
The challenge
The current situation is that of a traditional transload programme without any scope for optimisation of lead time and labour costs.
The solution
Maersk started with its Warehousing and Distribution facilities in South Gate and Summer in 2012. By 2019, it launched an Integrator Project with a focus on the expansion of efficiencies throughout each segment of the supply chain.
To achieve this, Maersk did the following:
- Weekly block stow/peel-off process
- Established best practice for communicating empty container return and shut out
- Summer yard management system PINC in process
- Automation of South Gate scheduled for deployment in 2020
- Proposed transload expansion to New Jersey (including automation)
- Backhaul proposal to move the customer’s domestic product on our empty ocean containers
Optimisation of manual processes
The customer saw merit in Maersk's solutions and made it their lead partner through their ocean services. This resulted in optimisation of manual processes and upstream management and scalable solution for volume growth with potential for expansion of Free Trade Zone services.
Maersk also saw more than 8% through its proposed transload programme by 2019. With the 2020 deployment of automation of South Gate, it forecasts long-term growth in revenues through further reduction in inventory and labour costs.
