Download PDF version
A multi-channel specialty lifestyle retailer was growing into one of the largest e-commerce retailers in the US. They had more than 50% of total revenue streaming through their online channels. As operations scaled up, the company needed to scale up its warehousing and distribution as well.

The Challenge

This growing American lifestyle goods company was facing challenges in its current supply chain setup. Their vendor-load consolidation was sub-optimal, the service levels were unsatisfactory, and their transportation costs were increasing. Moreover, 20% of their containers were holding less than 7CBM of goods.

The Solution

Maersk devised a planning solution that would analyse vendor shipments

After an assessment of the supply chain setup, Maersk devised a planning solution that would analyse vendor shipments. This plan applied bespoke algorithms to identify the minimum level of cargo per shipment to minimise the total number of containers used.

The solution implemented:

  • A consolidated guide to supply chain planners to help meet the agreed minimum levels of cargo via the development of a ‘decision tree’.
  • A host of rules that vendors could use to decide when to ship cargo directly to the final distribution centre, or to do the same to a transload facility.
  • A container freight station solution stationed at the origin where smaller cargo could now be consolidated easily with other freight.

Benefits of planning solution

The solution transformed the supply chain setup of the company instantly. By minimising transload activities in the US from 20% to 5% of the volume, Maersk was able to save annual costs of US$ 2.4 million and lead-time by 1 day.

The solution also delivered:

  • Improved handling in the warehouses
  • Optimised flow of cargo at the point of destination
  • More clarity to vendors to make decisions on where and when to ship their cargo
  • Weekly reports that ensured that all processes are followed through effectively
  • Minimised storage requirements Speeded up access to back-orders
Download PDF version Download PDF version

In case you missed it

Strategies to achieve FuelEU Maritime compliance
Strategies to achieve FuelEU Maritime compliance

FuelEU Maritime came into effect on Jan. 1, 2025. It is part of the European Union’s Fit for 55 package and applies to commercial vessels of 5000GT (gross tonnage) and over u...

VIKING sea trials prove LifeCraft™ resilience
VIKING sea trials prove LifeCraft™ resilience

Sea trials are performed in northern waters – typically at depths of 200-300 metres off the coasts of Norway, the Shetland Islands, the Faroe Islands, and...

ClassNK ZETA enhances FuelEU Maritime Tools
ClassNK ZETA enhances FuelEU Maritime Tools

ClassNK has released new features related to FuelEU Maritime and EU-ETS for its GHG emissions management tool, ‘ClassNK ZETA’. Additionally, with the integration with N...

vfd