Customer Need/Problem

A global retailer and Travel/Entertainment operator imports shipments of plush toys and novelties supporting these operations from multiple vendor locations in South China for delivery to locations in the UK and Europe. These import movements, though relatively simple in routing structure, are complex in nature because of the following factors:

• A very large number of SKU’s (Stock Keeping Units)
• The complex number of vendors utilized in South China
• he necessary scheduling to meet demand dates; especially problematic was the timing of deliveries to meet changing film production rollouts and promotions

Service Solution

To support a more disciplined shipment planning process with the flexibility to manage rapidly changing delivery dates while providing greater visibility of purchase order movement, OOCL Logistic proposed a South China consolidation/warehousing Pre-Distribution program with a Podium Suite IT system-based solution capable of accepting and providing information at the SKU level to the client and providing an load building capability.  Key program elements include:

• Conversion by client to FCA/Ex-works (EXW) terms and creation of new purchase orders under FCA/EXW terms
• Vendor management and training to meet new purchasing terms and operational elements
• OOCL Logistics arranged multi-factory cargo pickups from vendors under the EXW terms
• OOCL Logistics (origin) CFS managed cargo receipt and storage
• Customer issuance of “pick orders” to OOCL Logistics through InventoryPodium
• OOCL Logistics “pick order” management by specific destination DC/store requirements
• OOCL Logistics container loading, booking with carriers and drayage of containers to vessel loading
• MyPodium/DocumentPodium shipment visibility, exception and document management

Customer Benefits

• FCA/EXW terms give client maximum control over shipment elements at the vendor factory door
• Use of InventoryPodium to provide load management provides responsive flexibility to eliminate over and under stock situations to meet film production and premier schedules
• Origin storage and “order picking” reduces warehousing and load building costs over destination DC processing of orders
• Reduced administrative costs as OOCL Logistics fully coordinates and manages South China shipment preparation and provides MyPodium based shipment progress monitoring and exception management
• Reduced unloading and merchandise placement costs at destination as loads arrive ready for store shelf