Best Practice of Electronics

"Container load optimization reduces the number of shipping containers and lowers the logistics cost"

Operations Fields: Digital Appliance, LG Electronics
Application:
CubeMaster.NET, DevPack

Overview

  • 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
 

For more information about this project, contact Dr. Andrew Chang by sending an email.

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