Shipping Container Optimisation

Aug 2021, Sydney

Eamonn Barrett

Finding the balance between container usage and meeting customer expectations on delivery time

Challenge

International supply chains, long lead times, and bulky products

Solution

Container load and logistics optimisation by Remi

Context

Remi AI was engaged to optimise the decisions made around shipping, and the Remi platform was deployed to help in the following areas:

  • Container construction: Also known as the ‘Tetris’ factor, the arrangement of the container contents can be optimised to have the minimum amount of wasted space.

  • Container profitability: The contents of a container can be highly variable depending on the supplier, with each product potentially varying on margin. Product selection for the container can be optimised so that the most profitable container is created.

  • Virtual allocation: When inventory spends several months on the water, the demand indicated by the forecast that was used at the time that the purchase order was released may be different from the demand that is forecast while the container makes its way across the water.

 

The project progressed from a pilot to production during 2021

The Solution

A furniture wholesale client with supply lines tracking into several parts of Asia experienced extreme challenges during the 2020/21 COVID-19 years. Like many businesses around the world, access to and the cost of shipping containers had both moved in the wrong direction, that is, access had reduced and costs had increased. The client experienced a 3-4x increase in the cost of a shipping container, meaning that efficiency gains in surrounding activities were essential to the success of the business.

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Want to know more?

A furniture wholesale client with supply lines tracking into several parts of Asia experienced extreme challenges during the 2020/21 COVID-19 years. Like many businesses around the world, access to and the cost of shipping containers had both moved in the wrong direction, that is, access had reduced and costs had increased. The client experienced a 3-4x increase in the cost of a shipping container, meaning that efficiency gains in surrounding activities were essential to the success of the business.