Saving Millions in Container Storage Charges Through Delivery Management
In 2012, a retail customer approached us with a significant problem. They had paid over half a million dollars in storage charges for ocean containers, but the third-party software they hired to manage the process was ineffective and costly. The software required constant management, provided late and unreliable data, and failed to reduce expenses.
The Beginnings
At the request of our customer, we took on the task of managing their container storage, despite it not being a service we offered at the time. Their only requirement was to keep the cost at or below what they were paying to the third-party software provider. With our existing Order Management records, we had valuable shipment information, allowing us to create container records at the destination. We also had a proprietary Transportation Management System (TMS) that we could enhance for this purpose. Plus, our dedicated team was eager to tackle process challenges.
"Dray Management"
In 2012, we visited the office where the concept of "Dray Management" was born. The team tackled complex tracking of ocean container drayage moves, realizing software alone couldn't solve the problem. They needed scalable methods to manage information from various sources. Technology played a crucial role by leveraging multiple data sources. The tracking process involved monitoring containers from origin to delivery, and collaborating with distribution centers to ensure timely handling. Automation became vital over time, starting as a manual endeavor.
Half a Million Saved
Our "Dray Management" program yielded significant savings for the customer in its first year, reducing detention and demurrage fees by over half a million dollars. Our active management approach, combined with technology, delivered exceptional results at a lower cost than their previous software-only solution. Recognizing its broader application, we rebranded it as "Delivery Management" and successfully addressed similar issues faced by other large customers purchasing inbound direct ocean freight.
Delivery Management
Expeditors' Delivery Management solution tracks and manages over 200,000 containers annually. Our updated solution includes a customer-facing platform, improved ETA tracking, and machine-learning technology for real-time information. We've also incorporated LCL shipments, export container deliveries, match-backs, and multi-modal moves. The new platform allows direct interaction with data, providing a single source of information for customers and service providers.
Our solution has greatly benefited Expeditors employees and customers. It remains agile, with continuous addition of functionality based on feedback. We have saved millions in detention and demurrage charges while relieving the burden of delivery management.
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1 年Hi Expeditors, I'm so impressed by the story of how you created a Delivery Management program for one of your customers. It's incredible to see how you leveraged existing technology and resources to create such an effective solution, helping them save over half a million dollars in the first year! ?? I especially appreciate how your team has continued to build upon the success of this system, adding new features and incorporating customer feedback along the way. It's clear that your team is dedicated to providing the best service possible and maximizing business potential with customs data. Your effort to stay agile and innovative is inspiring! Thanks so much for sharing this story with us - it was an insightful read! ??