A proposed framework to improve containerization from Asia to North America

Abstract

The constant market change and the critical role of the logistics process in the supply chain need to have special attention because it is an essential piece for the global business strategy. This paper presents an assessment of the processes of handling material from Asia suppliers to North America. The data utilized for the analysis is of 12 months of 2019, valuable input to support the proposal to the company to approve the changes to get a financial gain. The proposal aims to create a complete analysis starting on how the containers are loaded currently in Asia (floor loaded) and the complexity that this strategy creates for the whole supply chain. The analysis of the overall process aims how the proposed change (pallet loaded) will reduce demurrage cost annually (USD 147,000), lead time (from 6 days to 3 days), space utilization in the facility (reduce space by 6364 sqrt/ft), reduce operational cost annually (USD 210,000), improve safety (Risk factor savings annually of USD 61,100), and on-time delivery to the customer (Increase 4%).