EXPORT CONSOLIDATION FOR SHIPPERS STRAIGHT FROM ORIGINAL MULTI BRAND PRODUCT WAREHOUSE
In EIMEA export locations (e.g. Saudi Arabia, Cyprus, Dubai) several European produced brands are often distributed by the same distributor. This means that local as well as multinational shippers each ship directly to the same distributor.
There are two main flows to these export markets: 1. The shipper ships directly from its local DC towards the distributor – In case that the distributor has sufficient volume this is ideal. But often this is not optimized and there are several losses. The distributor orders are consolidated as optimization but as a consequence the distributor has to wait longer for the product. If product becomes urgent half-empty containers are shipped.
2. The shippers ships via LCL consolidation towards the distributor – When shipping through LCL consolidation centres the product are handled more often than in a direct shipment. Each handling creates risks on damages and there is less regard for quality
ODTH First Class Logistics is currently handling cargo from several multinational A-brand manufacturers in different market segments.
Our export hub is located adjacent to the Hutchison Ports inland container terminal. The unique set-up with the ODTH warehouse ensures that you don’t need expensive road transport from the terminal to a regional warehouse as reach stackers drop containers directly onto the loading platform of the ODTH warehouse. The container terminal offers daily barge services to the port of Antwerp and the port of Rotterdam. As empty depot for most carriers, there is no need for return or empty logistics, again reducing costs.
This set-up would make the warehouse ideal to consolidate cargo directly towards these shared distributors. The combination of flexible warehousing possibilities and high standards in quality and safety could ensure an ideal set-up for both shippers and distributors.
Consolidation will fail our succeed based on the warehouse management system’s ability of optimizing cargo. It should therefore take volume, producttype, weight, handling requirements and more into account. On the other hand customers should have a clear view on added value and benefits from this new process.
Which tools would be required for developing this is as a supply chain strategy? How can we convince shippers to take part? Can you think of any showstoppers? And if so, how can they be tackled?