SCG-L Practice: why information sharing is more important than you think

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A real world example of what happened in SCG-L when information sharing became a zero-budget solution.

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          It is well known that information that evolves in the supply chain is crucial for effective logistics management. Similarly, the sharing of customer information helps SCG-L put in place strategies that lead to efficient-effective management with optimized asset utilization and retain customer satisfaction with faster deliveries.

A real world scenario happened with SCG-L this year when the volume of goods to be transported from Sichang island off the coast of Chonburi province to the destination port in Songkhla in the far south increased by 50% from the previous year, causing bottleneck congestion around the southern port and at clients’ facilities.

The bottleneck resulted in a low utilization rate of the ships that were stuck waiting for high tides to unload the cargo and nowhere to go along with idled trucks waiting for the incoming loads to be delivered to the recipient destinations. All idled activity caused a cost increase in management and loss of invaluable time endured by the customers. Monsoon periods further complicate logistics efficiency with prolonged shipments.

After holding a meeting with customers, common solutions were discussed:

1. SCG Logistics and customers have collaborated to set KPIs for daily transports to and from the customer’s and port facility. The KPIs were agreed upon after both parties analyzed past records from existing data and found it to be realistic and suitable in terms of implementation.

2. Discussions of daily operational problems and consequential impacts for both parties to find solutions together. The discussion received great cooperation by the management team.

3. Clients to reserve backup inventory space, or buffer stocks, in the event of monsoons that may affect shipping in order to maintain a continued flow of raw material input for uninterrupted production output.

Such collaboration has resulted in faster deliveries for customers and eliminated problems from bottleneck congestions. From SCG-L’s stand point, the utilization rate of vessels and trucks has also improved, resulting a direct reduction in transportation costs. Thus, SCG-L has learned to focus on sharing information with customers in the areas of warehouse management, order quantity, daily transportation volume as well as operational problems that may affect the customer in order to arrive at appropriate solutions that mutually benefits both parties and enables everyone to progress and grow together.

Compiled by BLOG.SCGLogistics

References and photos freepik.com

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