Ocean Freight Buyers Consolidation Program

Customer Challenge

OIA Global’s customer, a multinational oil and gas company, relied heavily on air freight from specific suppliers in China, leading to numerous supply chain issues and excessive freight costs. The company needed consolidation, and quickly!

Extremely high air freight costs
Unnecessary expenses related to customs clearances
An excessive number of shipments led to a burdensome amount of track and trace monitoring, wasting considerable time and resources.
Lack of control due to multiple weekly deliveries

Solutions

Coordination of suppliers (30+ different entities)
Cargo consolidation at origin and destination with weekly pickups and deliveries
Logistics analysis and strategic implementation
Leadtime management and subsequent customer communication

Benefits

Weekly FCL space allotments without commitment.
No negative impacts or delays amidst a heavily congested market.
Increased accuracy for lead time analysis.

OIA’s customized services improved port-to-port (P2P) and port-to-door (P2D) reliability by 95% and reduced freight costs by 60% as compared to air freight.

Important context: The key performance indicators (KPIs) typically used for origin pick-ups are not salient during an ocean consolidation because different suppliers can send materials on different days. Metrics for P2P and P2D transit times are better at showing how a logistics partner delivers value.

Need consolidation?

OIA’s solutions can reduce freight costs and improve lead time analysis.

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