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Through innovative supply logistics optimization, a major global marine transport company prepares to weather shifting market demand and come out on top.
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Business impact Goal is to achieve yield optimization in global logistics and container operations. Anticipated benefits include reducing positioning cost for the container fleet.
Issue To help insulate its bottom line from fluctuations in demand, the company sought to keep pace with changing market conditions by significantly improving business performance in yield management and network optimization.
Executive summary The client wanted to optimize its complex container shipping logistics to boost performance and meet growing customer demands. A global container logistics optimization strategy was developed by IBM Global Business Services that relies on IBM Research's previous work with a carrier that reduced container logistics costs by about 15 percent.
What IBM did A global economy requires a worldwide transport and delivery system capable of efficiently managing the shipping and logistics requirements of businesses around the world. This marine transport company operates well over a hundred vessels, covering major ports in 35 countries, as well as about a dozen dedicated terminal facilities. The company has staked its reputation on its ability to satisfy even the most demanding customers, and its strategic investments to establish main trunk routes, dedicated terminals and a robust infrastructure have provided a solid foundation for future growth.
Acknowledging its need for internal process transformation to meet future demand, the client hired IBM to manage its Process Innovation Master Plan project, which involved almost all key areas of the company's container shipping business.
With the extensive industry expertise of IBM Transport & Logistics, IBM is working with the client to develop new global front- and back-end systems, while reengineering and improving its business processes. Included in the Process Innovation Master Plan are transformational solutions for networking management, yield management, customer relationship management and human resource management. The final result will be an end-to-end shipping logistics system implementation.
Capabilities applied IBM was able to pull together the combined expertise of its Center for Business Optimization, IBM Research, IBM Global Business Services and IBM Transport & Logistics to create significant value through global container logistics optimization for the client. The solution relied upon IBM Research's previous work with a global carrier and IBM Transport & Logistics' deep knowledge of the global shipping industry. Combined with the resources of IBM Global Business Services and the Center for Business Optimization, the IBM team used its technological and business capabilities to help guide the client through the transformation.
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