Optimizing Container Loading for Ocean Freight Cost Reduction
JAS’s client is a multinational automotive manufacturing corporation. With a strong international presence, the company operates across various markets and manages a complex supply chain involving numerous suppliers and distribution channels.
The client faced a significant challenge optimizing its ocean freight costs associated with shipments from a critical strategic Tier 1 supplier. High sea freight costs were impacting the client’s bottom line, warranting a solution to streamline the container loading process to lower shipping costs.
Through an in-depth review of existing container loading procedures and analyzing several potential solutions, the JAS team identified an opportunity to increase the number of layers of parts per pallet. By optimizing space utilization within each container, the goal was to enhance container utilization and improve overall supply chain efficiency.
Implementing increased layers of parts per pallet resulted in a 20% improvement in container utilization and a 20% reduction in the number of containers required monthly. Consequently, the client saved over $300,000, bolstering both its bottom line and overall supply chain efficiency.