Cost-Effective Shipping With The Power Of Supply Chain Freight Optimization
Introducing The Client
Our esteemed client stands is a global pharmaceutical manufacturing leader, renowned for its exceptional contributions to the healthcare industry. With an extensive international presence, they export a substantial volume of pharmaceutical products to the United States and the European Union.
To ensure the efficient distribution of their life-saving products, our client employs two primary modes of freight transportation – aircraft and ships. This dual approach allows them to meet the diverse needs of their global custo
Problem:
Our pharmaceutical client, a major exporter to the US and EU, lacked a standardized process for selecting freight modes (air and sea) in India. Decisions were subjective, resulting in logistics inefficiencies and high costs.
Solution:
To minimize logistics expenses, the client sought a data-driven Decision Model to standardize freight mode selection and enhance efficiency. Such a model would eliminate inefficiencies by introducing data-driven logic to optimally choose the freight mode for any consignment, thereby streamlining their logistics operations.
Hesitations:
Client concerns included adopting the new model, process disruptions, and staff training. However, they recognized the potential for substantial cost savings and improved operations.
Data-Driven Optimization To Construct an ML-Based Decision Model for Streamlined Logistics
We conducted a comprehensive analysis by examining freight and inventory data from the previous year, utilizing this information to construct a Machine Learning (ML)-based Decision Model. Additionally, we closely evaluated the client’s existing systems and processes for freight mode selection to identify areas for improvement.
As part of our solution, we also conducted a retrospective study to assess the missed opportunities and inefficiencies that had arisen in the past. This study provided valuable insights into areas where optimization could enhance the client’s logistics operations and reduce costs.
Revolutionizing Logistics Through Data-Driven Freight Mode Selection and Real-Time Dashboards
By replacing judgment-based decision-making with a meticulous data-driven approach, we’ve minimized inefficiencies in the critical process of freight mode selection. The impact is nothing short of extraordinary – a substantial 6% reduction in logistics costs achieved through the strategic selection of the most optimum freight for each consignment. Furthermore, our tailored dashboards have bestowed senior management with unprecedented visibility, enabling real-time tracking of logistics costs and triggering exception alerts across all major dimensions.
Understand the significant reduction in logistics costs, achieved through the adoption of our Decision Model, and cater to the tangible benefits of a well-informed approach to freight mode selection with us!
