Strategic Route Optimisation for Faster Market Entry
Non-obvious logistics decision that reduced transit time by over 30 days and improved capital turnover
Client Request & Challenge
To deliver client's containerised cargo with the most cost-effective transportation option.
The major difficulty was in finding out if the lowest initial transportation cost really provided the best financial outcome for the client.
Key Challenges
Solution & Route Selection
Rather than going the traditional route, we suggested an alternative solution that seemed considerably more expensive in the form of the Trans-Caspian Transport Corridor. The freight cost also seemed higher at first glance. But a closer look at operations and financial numbers revealed that this corridor had faster processing and more predictable timeframes for the trips. This decision was not only based on nominal freight cost, but the overall business impact.
Implementation
The shipment was redirected through the Trans-Caspian corridor in accordance with the port activities and transit phases of the container transport pipeline. By choosing a mode of transport that was less congested and optimizing handling stages, we guaranteed a better flow of cargo with very low delays in intermediate hubs.
Results & Outcome
Measurable impact and successful delivery metrics
Key Achievements
Project Scope
Shipment Details
Route & Timeline
Key Takeaways
- If a transport price is elevated, then delivery time is likely to be shortened, and capital can be turned around faster than it usually would be if transportation were costlier than it is
- The shortest route is not always the smartest route
- Strategic logistics planning needs to evaluate the full economic impact — not just freight cost
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