Challenge: A major chemicals company manufactures product in Brazil and ships globally, with its largest market in China. It takes 27 days on ship to deliver to China. Customers in China didn't want to wait 27 days to receive goods. The company didn't want to set up a DC in Asia.
Solution: The chemicals company developed a “floating warehouse” and goods are shipped prior to the order.
Results: Ten days after the shipment is on the water, they start to sell product. When the shipment hits the port the goods are dynamically allocated. The key to enabling this floating warehouse is certainty of in-transit materials. The concept of the floating warehouse is not new but a granular view of specific inventory combined with the ability to know exactly when the shipment will arrive creates a huge advantage.
About the Solution Provider: GT Nexus operates the world’s largest cloud-based business network and execution platform for global trade and supply chain management. More than $100 billion in trade flows through the GT Nexus network annually. Over 25,000 businesses across industry verticals share GT Nexus as their standard, multi-enterprise collaboration platform.