Scheduling and Logistics

Global procurement inevitably has a component of scheduling and logistics involved in the supply chain. Frequently the cost of logistics can consume the benefit of sourcing low cost products and materials. In an era that is progressively more affected by increasing fuel prices (Fuel Surcharges and Bunker Adjustment Factor - BAF) and adverse affects of currency (Currency Adjustment Factor – CAF), managing the cost of logistics is very important.

3o's clients rely on us being able to manage this part of the supply chain for them too, and delivering increased value from our activities.

Our clients have varying logistics requirements that extend from small volume shipments from multiple suppliers to large volume shipments from single suppliers. There are various difficulties that can be faced at each stage of the process.

Managing the scheduling of orders with suppliers in different time zones that speak different languages and have different values and cultures can prove difficult within an extended supply chain. To address this, 3o has an international team of employees that operate in the regions we source from. This team is able to consolidate the shipments for multiple clients and from multiple suppliers into the lowest common freight denominator. We manage COTD (Complete On Time Delivery) for our clients ensuring suppliers' production schedules fulfil the delivery requirements of our customers and consolidate these deliveries into freight movements.

In this way we are able to ensure all our freight movements minimise the cost of logistics, in a way that individually our clients would be unable to do by themselves. In some instances, the cost of logistics can be in excess of 20% of the total DDP (Delivered Duty Paid) cost. Therefore, if containers are dispatched only half full this cost escalates significantly and becomes a major cost driver that can make global procurement cost-ineffective.

Processes

  • Scheduling
  • Air freight
  • LCL – loose container loads
  • FCL – full container loads
  • De-stuffing containers
  • Break bulk
  • Tariff classification / customs clearance
  • Trucking

3o works with the supply market and logistics operators to ensure we minimise our customers' logistics costs and maximise the benefit of sourcing from Asia.