Working with one retail customer, Agility was able to measurably reduce the quantity of TEUs shipped from China to the West Coast of the United States. Through a solution that involved Container Freight Stations to consolidate cargo, we were able to reduce monthly TEUs shipped by 356. This reduction resulted in emissions reduction of an estimated 56%, or about 652 tons of carbon-equivalent emissions per year. At the same time, the customer achieved significant cost savings while enjoying the same high level of service.
One of our chemical customers in Europe challenged us to help organize their distribution network spanning 16 warehouses, packing and filling operations across one country. Agility rationalized the distribution network, reducing the total distance travelled by 22% while maintain the existing structure and adhering to the existing level of service requirements. The improvements resulted in cost reductions of 13%, a 7% increase in the volume delivered within 400 kilometers, as well as savings of 1,000 tons of CO2-equivalent emissions.
A global telecommunications customer challenged Agility to reduce the cargo weight, transport cost and emissions of its air shipments originating in 3 different countries. Agility modified air freight information management systems to better match the unique characteristics and requirements of each consignment, assigning a dedicated team to manage the consolidation. The changes resulted in 9% reduction of cargo weight and emissions for over 1,000 tons of air freight per year with no subsequent increase in transport times or disruption to manufacturing processes.
One of our retail customers wanted to decrease supply chain waste in order to mitigate consumer pressure and prepare for impending regulations. Over a period of 5 years, Agility implemented a solution to increase rates of carton reuse in order to reduce waste and save costs in the Philippines and Indonesia. In the Philippines, we were able to double carton reuse, leading to over $50,000 in packaging cost savings. In Indonesia, we increased the average reuse rate from 47% to 72%, leading to new total savings of $78,000.
A global electronics leader challenged Agility with how to address reduce the carbon footprint of their shipments while managing growth in the dynamic Middle East market. Agility analyzed the shipments and products to see which were well-suited to switch from air freight to ocean freight. Switching from air to ocean increased shipment time significantly, but can reduce costs and emissions by over 90%, depending on the trade lane. Agility’s proposed solution for one trade lane would increase travel time from one day to 22 days, but reduce cost and emissions by more than 98%. For a second trade lane, the Agility solution increased travel time from 1 to 24 days, but reduced cost by 65% and emissions by 78%
A global automotive customer needed help improving the reliability and environmental impact of its supply chains from China to the West Coast of the US. A careful analysis of the customer’s supply chain revealed a few key opportunities for improvement. In a multi-faceted optimization project, Agility’s supply chain solution team proposed buyer consolidation in China to reduce the total number of consolidation points, which would also facilitate load optimization. Shipments were re-routed away from less efficient ports, allowing for better consolidation at destination and creating opportunities to double stack containers for inland rail transport. The comprehensive solution saved the customer 24% on logistics costs, reduced total shipment time by at least one day, and as much as 17 days, with shipments arriving four days faster on average. The solution also reduced emissions by 9% overall.
A technology company tasked Agility with reducing its carbon footprint for intra-Europe transport. It’s existing shipments were performed by truck. Based on the existing distribution network, Agility was able to propose multiple routing options on key trade lanes that would utilize lower-emissions modes of rail and barge, with only small increases in travel times. Switching to rail reduced emissions by 58%, and costs by 19%, while increasing travel time from 1 to 3 days. Switching from truck to barge reduced emissions by 68%, and costs by 30%, while increasing travel times from 1 to 5 days.
For a retail customer sending goods from Asia to North America, Agility introduced a range of improvements to their supply chain, including buyer consolidation at point of origin as well as load optimization. Improvements to the purchase order process and the vendor management systems were also part of this project, which reduced emissions by 9%, costs by 18% and average transport time by 11%.