Savi supports supply chain risk management efforts to help you proactively prepare for contingency management.
Today supply chain professionals use modern software tools to optimize performance. You manage warehouse inventory with 99% accuracy for millions of SKUs, optimize labor to get a 10–30% improvement in utilization and save 5–10% of freight costs with preferred carriers or best modes. Yet, once the goods are in-transit, the variability of delivery time is routinely up to 200%. Savi can help you optimize the one part of your supply chain that remains highly variable and subject to expensive disruptions.
Featured Case Study
For more than 90 years, Coles has had a rich history in Australia. The company can trace its origins to the founders of Australia’s retail industry. Today Coles is a leader in Australian food retailing, with more than 100,000 employees and over 11 million customer transactions a week. Coles is owned by Westfarmers Ltd.
What was needed
The logistical processes behind the Coles operation are staggering. For example, Coles employs more than 3.5 million reusable shipping assets to keep produce and other goods moving from supplier to warehouse to store. Some of these assets are reusable plastic containers (RPCs) owned by Coles and rented to providers. Others are reusable shipping pallets, which are rented by Coles from a third party. Clearly, Coles has a lot riding on their accurate understanding of the movements and locations of these reusable assets.
After evaluating possible in-house solutions for asset and logistics tracking, Coles asked Savi for a technology solution that would allow them to increase tracking efficiency and reporting accuracy for the 3.5 million reusable shipping assets that circulate throughout the Coles supply chain. The Savi platform proved to be a great fit for this customer need. Savi deployed the platform and integrated with Coles’ existing back-office software and business processes.
Now Coles is able to use the Savi platform to manage all of their reusable shipping assets. RPCs are tracked when they are issued and returned, and the reports from the Savi system help Coles better understand the dynamics of their RPC cycle. Data and reports from the Savi platform are passed to in-house systems to generate more accurate bills, in less time, with less effort. In addition, Coles uses the Savi platform to better control the rental expenses they incur from their use of third-party shipping pallets. In summary, by using the Savi platform, Coles maximizes revenues and minimized expenses associated with reusable shipping assets. For Coles, Savi delivers results directly to the bottom line.
Additional Case Studies
This global Company employs tens of thousands of people in dozens of countries around the world. They deliver advanced chemicals to customers by truck, rail and sea, to customers using state-of-the art ISO intermodal tanks, valued at more than $600K each.
What was needed
An international provider of liquid and gaseous chemicals maintained an inventory of over 200 reusable intermodal ISO tanks to fulfill customer orders. These containers, each valued at $600K-$700K, were heavily used assets, and were often critical path items when evaluating shipping and supply chain issues. Utilization rates of these containers drive profitability. Company executives knew that to achieve the best results, they needed real-time understanding of container idle times and deviations from movement plans. Knowing container location was essential for business success.
Savi delivered a complete platform, designed to meet the specific tracking and reporting requirements of the Company. The solution collected and consolidated real-time tracking data for the customer’s entire inventory of reusable containers. The solution also enabled complete route management and monitoring of containers to and from customer locations. Savi presented the information to the Company via dynamic real-time mapping reports and through tight integration with legacy reporting systems, providing an enterprise-wide understanding of overall shipping and business dynamics. The platform also generates real-time alerts to inform decision-makers when containers experience any deviations from the shipment or movement plan. In addition, the Savi solution facilitates the presentation of cargo and shipment data to the Company’s clients through externally facing reporting.
With access to actionable sensor data and reports in real time, the Company was able to achieve many business improvements, including better load balancing and container utilization; cost reductions better understanding of shipment status, reduced exposure to costly expedited shipments and demurrage fees and more accurate predictions of future container needs, reducing the need for expensive short term rentals of additional container capacity. Externally facing reports improved customer satisfaction and helped customers make better decision and use of reserve stocks while waiting for deliveries. By implementing the Savi solution, the customer achieved greater profitability.