Businesses that deal with cargo shipping are caught in a perfect storm of rising container expenses, with freight rates experiencing significant fluctuations in recent years.
Both the container shipping industry, regardless of whether it is land-based or water-based, has grappled with challenges that impacted multiple areas of the shipping sector, such as warehouse storage capacity, labor availability, lead times, and supply chain schedules.
These challenges have increased the cost of shipping transportation. For example, in March 2023, shipping for a 40-foot container cost roughly USD 3,162, close to double when compared to 2022. Then, in January 2024, the cost increased to an average of USD 3,964*, an additional 25% increase from 2023.
In today’s logistics environment, planning for the “worst case scenario” is key to saving as much money as possible. But, how do you plan for the unplanned? Well, by proactively planning ahead. Thankfully we, at Jade Global, have a container planning solution to support you.
Let’s find out how you can manage the rising costs in container shipping and how Jade’s solution, i.e. Cargo Planning Controls can help you.
How to manage the rising costs of cargo shipping?
The concerning upward trend of container shipping costs is affecting the bottom line of many businesses.
For example, manufacturing and retail companies have to deal with significant amounts of intercompany transfers. These transfers, while not incurring revenue, they incur a cost. While it would be easier to pass the total cost down to consumers, with the current economic environment, price elasticity is at a significant low. Furthermore, depending on the industry, the room for these adjustments may be extremely narrow. An alternative is to seek where money can be saved by becoming more efficient. Companies have to be agile and precise in their supply chain planning.
Addressing efficiency in the following areas is key to this optimization:
- Shipping and transportation rates
- Up-to-date supplier vendor list
- Agreement between vendor supply plans and company manufacturing plans
- Container Utilization rates
- Accurate production and delivery plans
How can Cargo Planning Controls help you with supply chain planning?
Jade Cargo Planning Controls is a cloud-based container planning solution built on Oracles PaaS technology enhancing Oracle Supply Chain planning solutions. It integrates seamlessly with Oracle Product Management, Oracle Supply Planning, and Oracle Procurement, enabling you to manage your entire supply chain from a single, unified platform.
Features Designed to Enhance Your Oracle Supply Chain Planning
While other shipping container storage solutions might leave you wanting more, Jade Cargo Planning Controls Tower offers a unique set of features:
- Automatic Data Gathering: Jade Cargo Planning Controls Tower automatically gathers planning data from Oracle’s Cloud Supply Planning tool
- Automated Suggestions for Container Load Optimization: It automatically suggests optimized container loads based on your plans, product characteristics, and shipping requirements every time.
- Shipment Consolidation that reduces shipping costs: By consolidating shipments into full containers, it enables you to avoid repetitive and expensive, less-than-truckload (LTL) shipping fees.
- Insightful Dashboards for strategic decision-making: The industry-standard dashboards in Jade Cargo Planning Planning Controls Tower extract valuable insights from your international and domestic container shipping activities.
- Consolidated Purchase Orders for Simplified Procurement: it automatically suggests optimized container loads based on your specific needs.
- Location-Based Inventory Management: It reduces order volume by grouping planned orders into a single comprehensive purchase order.
*Cargo Planning Controls’ Detailed view of orders assignments by selected group, in this case supplier, supplier site, and need date.
*Cargo Planning Controls sample view of planned orders with optimization details and merged into a purchase order
Container Planning Solutions with Jade Cargo Planning Controls - Benefits to Your Business
Cargo Planning Controls is the best container planning solution in Oracle PaaS as it offers incredible benefits to your business:
- Up to 30% Lower Transportation Costs: Consolidate shipment orders and optimize container loads based on products for significant cost
- Up to 20% Production Efficiency Boost: Align your production planning to your shipments with real-time visibility and optimized loading.
- Faster Turnaround Times: Accelerate your supply chain deliveries with streamlined planning and consolidated orders.
- Robust Oracle Integration: Seamlessly integrates with Oracle's Product Management, Supply Planning, and Procurement modules.
Take the Next Step: leverage Jade Cargo Planning Control
Unforeseen changes in the logistics environment can make your container planning activities very costly. It can lead to missed opportunities for cost savings, inefficient use of resources, and ultimately, a strain on your bottom line. Jade Cargo Planning Controls empowers your business to proactively manage these challenges by optimizing container utilization, reducing transportation costs, and aligning your supply chain operations with real-time data. Seamlessly integrated with Oracle's supply chain solutions, our platform ensures that you can navigate the complexities of modern logistics with confidence.
Jade's Oracle-certified experts have built Jade Cargo Planning Controls by leveraging 20+ years of industry experience and a team of 600+ Oracle Consultants. We have delivered 650+ ERP Projects and built 20+ Solutions and accelerators. With over 1,000 ERP projects delivered, we’ve earned the trust of Oracle customers, who have consistently rated our services with a Customer Satisfaction Score of 4.8+.
Discover how Jade Cargo Planning Controls can transform your containerized planning. Book a free demo.