Streamlined Logistics for Home Improvement Products from Turkey to UAE | Case Study
Summary
A leading home improvement retailer in the UAE faced significant challenges with limited visibility into their inbound shipments from Turkey, leading to high demurrage charges and inventory management issues. Al Sharqi Logistics implemented a comprehensive solution, including shifting purchasing terms, deploying an advanced purchase order management system, and enhancing supplier collaboration, resulting in improved supply chain efficiency and cost reductions.
Customer Challenge
The retailer encountered several obstacles in managing their supply chain from Turkey to the UAE:
- Limited Shipment Visibility: Operating under Cost, Insurance, and Freight (CIF) terms restricted the retailer’s ability to track shipments until arrival at UAE ports, leading to reactive supply chain management.
- High Demurrage Charges: Delays in clearing goods due to lack of proactive shipment tracking led to significant demurrage fees.
- Inventory Management Issues: Without real-time shipment data, planning for inbound inventory and stock control at the distribution center was inefficient.
Our Solution
Al Sharqi designed a tailored logistics strategy to address the retailer’s challenges:
- Transition to FOB Terms: Collaborated with the retailer to shift purchasing terms from CIF to Free on Board (FOB), providing the retailer with greater control and visibility over shipments from Turkish ports.
- Implementation of a Purchase Order Management System: Deployed a web-based system offering real-time visibility of shipment information, allowing planners to track inventory throughout the supply chain.
- Supplier Management & KPI Analysis: Conducted joint analyses of the purchasing system to capture critical order data, manage suppliers effectively, and establish detailed Key Performance Indicator (KPI) analyses for consistent business reviews.
Customer’s Benefits
The retailer experienced several key benefits from Al Sharqi’s logistics solutions:
- Enhanced Shipment Visibility: Gained real-time insights into shipments, enabling proactive management of the supply chain.
- Reduced Demurrage Charges: Improved tracking and management of shipments led to a substantial reduction in demurrage costs.
- Improved Inventory Control: Timely access to shipment data improved inbound inventory planning and stock management at the distribution center.
Conclusion
Al Sharqi’s strategic interventions transformed the retailer’s supply chain operations from Turkey to the UAE, enhancing visibility, reducing costs, and improving overall efficiency. This partnership highlights how tailored logistics solutions can address specific challenges, driving operational excellence and supporting business growth.
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