Introduction

Our firm partnered with a global leader in spices and flavorings that faced significant challenges in managing their ocean freight operations across multiple regions. With annual ocean freight spend of $70M and approximately 11,000 TEU volumes, the company lacked company-wide coordination and oversight of their ocean freight activities. Individual departments, country managers, and business units were controlling ocean freight in a fragmented fashion, leading to inefficiencies and rising costs. In the midst of unprecedented global supply chain disruptions, the company needed a strategic partner to transform their ocean freight operations and implement best-in-class processes and systems.

At A Glance

Our veteran team conducted a comprehensive assessment of the client’s ocean freight operations and developed a strategic roadmap for transformation. Our deep supply chain expertise and proven methodology helped identify over $1M in potential savings while building a foundation for long-term operational excellence.

Key Requirements:

  • Develop unified approach across global operations to leverage scale and capabilities
  • Implement robust systems and processes for visibility and control
  • Create standardized KPIs and performance metrics

The Challenge

The client was struggling with fragmented ocean freight management that impacted both costs and service levels. Despite significant annual volumes, the company was managing ocean freight without company-wide coordination or oversight. They were using multiple carriers and NVOCCs without leveraging their total spend effectively. Service levels were maintained only through enormous effort and cost, with limited visibility into container movement and location. The lack of standardized processes and systems meant no KPIs were in place to track supplier quality of service or cost performance. Manual processes for tracking and intervention created inefficiencies, while poor data quality and availability hampered decision-making. These challenges were especially acute given the difficult global freight market conditions, with container rollover rates near 40% and unprecedented port congestion.

PraxiChain Solution

  • Implemented center-led operating model with clear roles and responsibilities
  • Developed standardized processes for sourcing, execution and performance management
  • Created robust freight audit and payment capability with automated data capture
  • Established KPIs and dashboards for monitoring service levels and costs
  • Designed organizational structure to support new operating model

Results

Through our systematic approach and deep supply chain expertise, the client achieved significant operational and financial benefits. The implementation of standardized processes and systems enabled $525K-$1M in annual savings opportunities through improved carrier management and network optimization. The new center-led operating model created clear accountability and improved collaboration across regions. Automated data capture and reporting provided unprecedented visibility into performance metrics and costs. Most importantly, the transformation established a foundation for continuous improvement and long-term operational excellence. The company now has the capabilities, processes and systems needed to effectively manage their ocean freight operations at scale while maintaining service levels and controlling costs. This successful transformation demonstrates our firm’s ability to deliver measurable results through our proven methodology and deep supply chain expertise.