Case of Problem Solving

Reduce transportation costs by proposing integrated transportation using local partners overseas.

Industry Manufacturing
Type of cargo Raw materials for products
Purpose Cost reduction
Transportation area Southeast Asia

The recent rise in global transportation costs has affected many manufacturers in Japan. Reducing transportation costs is also an essential issue for customers manufacturing products at factories overseas and delivering them to end users around the world.

Problem
  • A factory overseas manufactures products and transports them to end users globally.
  • Reducing transportation costs is an essential issue.
Proposed solution
  • We surveyed the field and verified several transport patterns.
  • Using a different port to the arrival port currently being used would be effective.
Results and effects
  • We were able to start handling with the new transportation process.
  • We were highly regarded for our ability to conduct surveys and take action to establish the new transportation process.
Manufacturing costs are rising due to increased marine transportation costs.
Problem

Manufacturing costs are rising due to increased marine transportation costs.

The customer’s overseas factory manufactures products and delivers them to end users globally. We were consulted about the transportation of raw materials from Japan to the factories overseas.

Due to the recent increases in global transportation costs, manufacturing costs were unprofitable with the previous transportation process.

To solve this, reducing transportation costs was an essential issue. So, we were asked to consider alternative means and methods, and propose services able to reduce costs.

Integrated transportation with local transportation after arrival at the port could reduce overall costs.
Proposed solution

Integrated transportation with local transportation after arrival at the port could reduce overall costs.

Using our local office and local partners, we surveyed the costs of integrated transportation, both the cost of marine transportation and the cost of transportation after arrival at the port, at the port the customer was using and nearby ports.

After the survey, we verified several transport patterns. As a result, we judged that using a different port to the one the customer was using would be effective.

Although the port is a long way from the factory, the total cost can be reduced by integrated transportation. We explained the merits of this process and made our proposal.

We were able to reduce transportation costs to about 70% of their conventional method.
Results and effects

We were able to reduce transportation costs to about 70% of their conventional method.

The customer adopted the proposal and we were able to start handling with the new transportation process.

The customer was able to reduce transportation costs to about 70% of the conventional process.

With the current soaring marine freight rates, we received high praise and appreciation for our services and efforts, including being able to conduct various on-site and other surveys, our ability to establish the new transportation process, and ultimately, our ability to make a proposal leading to cost reductions.

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