Case Study: How a Multinational Organization Reduced Shipping Costs and Improved Supply Chain Visibility
The multinational organization, which manufactures hearing devices, diagnostic equipment, and interactive communication devices, faced several challenges in meeting customer requirements. With branches in countries such as Denmark, US, Australia, Switzerland, and France, the organization struggled with limited and expensive air freight from Asia to the EU, slow ocean freight transit times to maintain US demands, and restrictions on air travel and delays in port entry. Additionally, the company had to focus on speed to market, lower costs per unit, keeping stocks low, and improving coordination and visibility around the value chain.
To address these challenges, the organization turned to UPS’s Less-Than-Container-Load (LCL) rail freight solutions via China Rail from China to Poland. This solution offered a low-cost alternative to the customer, balancing cost with transit time, which was less than ocean freight. With regular shipments from APAC to the EU, the company was able to build a long-term relationship with the customer.
As a result of this solution, the multinational organization was able to achieve significant customer results. The low-cost alternative provided by UPS LCL Rail Freight helped the organization reduce shipping costs, making it a more attractive option for customers. The cost balancing with transit time also ensured that the organization could maintain US demands, despite slow ocean freight transit times. With regular shipments from APAC to the EU, the company was able to maintain an efficient and reliable supply chain, improving coordination and visibility around the value chain. Overall, the organization was able to build a long-term relationship with the customer by providing an innovative solution that addressed their unique shipping challenges.
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