Case Study: Global Freight Forwarding

CHALLENGE.

A global producer of renewable fiber-based packaging, pulp, and paper products with operations in more than 24 countries approached us with several challenges they were experiencing with their export logistics operations.

Relying heavily on manual processes to manage export shipments from booking through sailing, errors and delays were all too common due to limited visibility and access to real-time shipment information. Listed below are some of the challenges and complexities that the company was facing:

  1. Compliance and Regulations: There are various regulations and compliance requirements that must be met when exporting goods, including customs, trade, and security regulations. Failing to comply with these regulations can result in penalties and delays in the shipment process.

  2. Documentation: Export shipping requires a significant amount of documentation, such as export declarations, bills of lading, and commercial invoices. Preparing these documents can be time-consuming and require specialized knowledge, and any errors or omissions can result in delays or even the rejection of the shipment.

  3. Logistics and Transportation: Export shipments often involve multiple modes of transportation, such as road, air, and sea, and coordinating these different modes can be challenging. Additionally, export shipments may require specialized equipment, such as refrigerated containers, which can add to the complexity and cost of the shipment.

  4. Financing, Insurance and Freight: Export shipments often require payment in advance or payment terms that are different from domestic shipments. Additionally, financing may be required to cover the costs of the shipment, such as transportation and insurance, which can be challenging to obtain.

SOLUTION.

Working with freight forwarders, supply chain managers and export compliance experts, we designed and built an end-to-end solution that started with entering make-to-order sales orders and scheduling them with freight forwarders using a first of its kind custom booking application that seamlessly transacted with freight forwarders via EDI technoloigies to book steamship space.,

The solution included several key components, including:

  1. Shipment Booking and Processing: The system allowed International Paper to book and process export shipments directly from SAP, streamlining the process and reducing errors.

  2. Freight Forwarder Integration: The system was integrated with International Paper's freight forwarders, enabling real-time communication and data exchange.

  3. Port Authority Integration: The system was integrated with the port authority, allowing International Paper to submit all necessary documentation and receive approvals electronically.

  4. Real-Time Shipment Tracking: The system provided International Paper with real-time visibility into the status of their shipments, enabling them to track their shipments from origin to destination.

IMPACT.

After several years over which multiple iterative improvements were delivered to satisfy evolving requirements from booking through sailing, the project was deemed a huge success. By integrating the various stages of the export supply chain with freight forwarders, steamship lines and port authorities, the company was able to quickly realize cost savings through improved workflow, visibility, collaboration and reduced risk exposure that is inherent in all export trade.

Having the ability to create, split and otherwise manage export bookings in real time provided many advantages over competitors at a time when shippers capacity was highly constrained. This level of visibility enabled the identification of potential bottlenecks and adjust quickly to a fast-changing environment subject to daily exceptions.

Integrations also provided a significant reduction in risk as a result of improved ability to achieve and maintain compliance through streamlined document generation and communication. This not only allowed for a smoother process and less waste, it greatly improved shipment throughput such that the number of shipments held in customs were significantly reduced improving on time delivery and eliminating drayage.

In the end, it was calculated that the project delivered approximately $400M in aggregate annual savings.