"Container load
optimization reduces the number of shipping containers and lowers the
logistics cost"
Operations Fields: Digital Appliance, LG Electronics
Application: CubeMaster.NET,
DevPackOverview
- Build a logistics information system to standardize the packaging and automate
the load planning
- Use CubeMasterâ„¢ to enable the load optimization of electronics goods such as
refrigerator, air-conditioner, washing machine and vacuum cleaner
- Generate instruction reports including the packing list and loading map to
help the shipping
- Share the reports over World Wide Web with logistics, sales and R&D
departments
Background
Increasing demand for standardization of packaging and loading
- Demand for solution of loading containers with multi-products
- Claims for poor quality of packaging and loading
- Hardness for determination of the package design
Lack of communication channel within the related departments for specification
changes
- Increasing demand for cost reduction of over-seas logistics area
- Increased transport cost decreases the profit of the company
- Always more number of containers are used than the actual amounts
Demand for increasing the customers satisfaction
- Customers complain for the empty containers
- Unstable stacking and low volume utilization increases the cost of delivery
Objective
Three main goals should be implemented;
- Package design for the R&D department
- Automatic FCL (Full Container Load) calculation for the sales department
- Container load plan of mixed products for the logistics department
Features
Three main features should be implemented;
Package Design
- Finding the best measurement of new product and carton
Container Load Plan
- Order Size Optimization
- Simulation of loading containers with customer’s order
- Finding the minimum number of containers required for the orders
- Finding new order quantities for making FCL
Container Load Optimization
- Simulation of loading containers with delivery orders
- Finding the minimum number of containers and the layout of loaded
containers
- Generating the easy-to-follow reports for the shipping
Benefits
- Reduced number of shipping containers by the increasing volume
utilization by 13.5%
- Reduced average shipping cost by 9.2%
- Reduced time by 2 hours to process loading and shipping
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