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Challenge: Client has 5 distribution centers throughout the U.S., being serviced by multiple Central China vendors. Each DC required specific amounts of product to be distributed from their respective locations. Client is buying full container volumes to one location, then re-distributing to the other DC's. By doing this, the domestic redistribution and transportation spend was significant. In addition, this customer had little Purchase Order visibility throughout the entire international supply chain.
The Laufer Solution: By working with client, we devised a program in which all Central China vendors deliver their products to our Shanghai Container Freight Station whereby the Warehouse Receipt data is reported through Laufer EDI. The client then has the ability through Laufer.com, to see in-gated inventory and create D.C.-specific orders to be loaded into containers. This DC bypass at origin allows the client to order and ship specific products direct to each facility. In addition, our Shanghai office works with each individual vendor to split the documentation as required by client to each destination in the US.
Results: The Laufer Group helped significantly reduce the domestic transportation spend for the international portion of their customer's supply chain. This custom solution also allows for enhanced product velocity to market, improved inventory management, and maximized loadability per container, further reducing overall transportation costs per unit.
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