Use Case – Optimizing shipment planning and SO release

[Audio] Good afternoon everyone, Today we'll be taking a look at the case study of Five Below and their successful optimization of shipment planning and SO release. We'll begin by examining the original problem, then delve into the solutions we found to resolve the issue. By the end, we hope you have a better understanding of how our team of experts can help you navigate through difficult situations..

[Audio] Allen OVERSEAS, an international shipment organization, was in a dilemma while shipping to their customer Five Below. As Five Below was cost sensitive, Allen OVERSEAS could not sustain the extra charges incurred. Damco demanded Allen OVERSEAS to pay Inland haulage as per Carrier Tariff, which was not in consensus with the prevalent industry practice of CONCOR tariff. This made a huge difference of US$ 222/container for Allen OVERSEAS, as it posed a significant additional burden..

[Audio] Our service offering had to evolve with the changing logistics needs of the customer. Despite Damco refusing to consider our request, our team went beyond expectations and connected the import team and Damco team from Five Below. Our proactive attitude and adaptability aided us in guiding the client to the best solution. We put in over 30 man-hours ensuring high quality customer service in all aspects. Therefore, our solution was to switch to CMA CGM instead of Maersk Line and include shipper Inland haulage charges in the SO. This resulted in Five Below saving a tremendous amount of US$222 per container..

[Audio] Five Below was faced with a Carrier Haulage Cost of 81,632 Indian Rupees, or US$995, and a Shipper Haulage Cost of 59,300 Indian Rupees, or US$773. Absorbing the cost would mean a loss of US$222 per container. To prevent this, shipment planning and SO release were optimized to balance the costs and keep margins low. Fast forward to June 2023, the number of containers shipped and under planning is on the rise..

[Audio] Five Below was able to save $4,884 by proactively assessing their current shipment planning and SO release. This included $888 savings for a 4*40 ft. shipment, and an additional $3,996 for an 18*40 ft. shipment. This showcases how our solutions can provide significant benefits to customers..