Chemical/Lubricant Client

Client Background:

Global manufacturer and exporter of lubricants and chemicals.

Global Footprint:

Client serves their customers in 50+ countries.

Challenge:

Client was experiencing 5-7 day delays in obtaining ocean equipment for exports. Additionally, there were 24-48 hour delays in rail acceptance of hazardous shipments which caused delay in rail and ocean sailing connections. These failures were creating an imbalance in inventory, delayed invoicing and lost sales.

Procyon Solution:

• Negotiate 2 ocean contracts covering 95% of client’s port pairs.
• Create a strategically located equipment “pool” for exclusive use by the client.
• Introduce logistics company to manage all shipment.

Results:

• Equipment waiting time reduced to 1 hour.
• Rail approval for hazardous shipment in 30 minutes
• Increased invoicing time by 5 days
• Increased inventory turns
• Reduced transportation costs and improved shipment visibility and reporting.