Reducing Costs and Improving Efficiency in Apparel Supply Chain from China to UAE | Case Study
Summary
A leading apparel retailer in the UAE faced challenges managing its supply chain, especially in sourcing apparel from China. Al Sharqi Logistics provided a tailored solution that improved visibility, vendor management, and cost efficiency, helping the retailer streamline operations and reduce logistics expenses.
Customer Challenge
The apparel retailer encountered several obstacles in managing its global supply chain from China to the UAE:
- Limited Visibility: The lack of real-time tracking of purchase orders and shipments led to inefficiencies in decision-making and inventory management.
- Vendor Management Issues: Inconsistent communication and oversight of Chinese suppliers resulted in delays and errors in order processing and documentation.
- High Transportation Costs: The inability to consolidate multiple shipments at origin led to increased shipping expenses, affecting profitability.
Our Solution
Al Sharqi implemented a comprehensive logistics solution to address the retailer’s supply chain challenges:
- In-Country Vendor Management in China: Our team in China educated vendors on best practices on lead time and shipping cut off’s, ensured accurate documentation, and confirmed orders to improve the reliability of the supply chain.
- Advanced Purchase Order Management System: We deployed a technology platform that provided SKU-level visibility of purchase orders and shipments, integrating seamlessly with the retailer’s existing systems. This allowed real-time tracking and better decision-making just on container but what is inside the container on the SKU level.
- Consolidation Services at Origin: By consolidating shipments from various vendors into Full Container Loads (FCL) at the source, we optimized transportation, reduced shipping costs, and improved customs clearance efficiency right till the destination door step.
Customer’s Benefits
The retailer experienced several key benefits by partnering with Al Sharqi:
- Enhanced Supply Chain Control: Real-time tracking and visibility of purchase orders and shipments allowed for proactive decision-making and better inventory management.
- Improved Vendor Performance: Direct engagement with vendors ensured accurate documentation and timely order processing, reducing delays.
- Cost Savings: Consolidation of shipments and optimized transportation routes resulted in a 20% reduction in logistics costs.
Conclusion
Al Sharqi’s tailored logistics solution provided the apparel retailer with enhanced control, efficiency, and cost savings. Our approach to managing the supply chain from China to the UAE helped the retailer improve operational performance, streamline vendor management, and drive business growth.
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