Using Upstream Visibility to Optimize Ocean Shipments

The retail market is dynamic, requiring accurate forecasting and efficient management of ocean freight capacity. Responding to consumer demand and handling disruptions is complex. Carrier Allocation is an online platform that connects shippers and carriers, empowering retailers with visibility and agility to optimize their ocean supply chains and ensure the timely delivery of goods.

Navigating Treacherous Waters

When disruptions occur in ocean shipping, such as blockages in major waterways like the Suez Canal or capacity constraints caused by events like the pandemic or port strikes, it becomes challenging for retailers to ensure the timely delivery of freight. In such situations, how can retailers respond effectively and promptly?

Problem-Solving for the World’s Largest Retailer

Carrier Allocation was created to address the gaps and misalignments in the ocean market for retail shippers. The world’s largest retailer, Walmart, wanted to find a better way to manage their contracts and work more efficiently with their direct ocean carriers. Carrier Allocation was designed to be a platform that allows shippers and carriers to collaboratively plan for the capacity of their goods weeks in advance of sailings, avoiding miscommunications, delays, and other disruptions.?

Since then, Carrier Allocation has evolved to help shippers of all sizes and across industries manage their Minimum Quantity Commitments week over week:

• Meet their annual contract agreements with their carriers
• Secure commitments from their carriers for forecasted capacity
• Manage freight spend
• Plan the optimal sailing to ensure their products arrive on their scheduled delivery dates.

A Platform for All Parties

Carrier Allocation is an efficient online platform that fosters transparency and collaboration. It eliminates the need for extensive email exchanges and spreadsheet maintenance by facilitating communication and planning within a centralized system. The platform's visibility enables swift identification of capacity allocation issues, which can be promptly addressed through seamless communication channels.

Agility and Flexibility

Carrier Allocation empowers retailers to swiftly adapt to changing consumer demand and ocean shipping conditions. Through dynamic operating rules, shippers can proactively plan responses to common disruptions like port congestion or severe weather. Moreover, the platform enables shippers to secure additional capacity when sales demand rises.

Knowledge is Power

Meeting annual commitments in direct ocean contracts is crucial for shippers to avoid penalties. Carrier Allocation allows shippers to utilize shipping and carrier performance data, enabling more accurate forecasting and selection of carriers based on their past performance. This optimization of the supply chain ensures that shippers do not incur unnecessary costs for undelivered shipments.

Want to learn more about Carrier Allocation? Read the full article.

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