CSAVAssignment Final

8/9/2019 CSAVAssignment Final

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Logistic Optimization in a Major

Shipping Company (CSAV)

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1. Cost savings for CSAV

From the case study analysis it is clear that, most of the business operations of CSAV are

dependent on container fleet, as it is proved to be second optimized company in terms of cost

savings and vessel fuel. It is given over the review that, empty container logistics will save the

cost for CSAV and this due to the fact that, operational costs are reduced due to the impact of

cargo container cycle management strategies. As a general process if the container is filled with

the respective products at the destination, it is again sent bac for the procurement routines and

thus the overall transshipment are charged along with the move of the container till it reaches the

respective destination. !ow the container is transported to the consignee and once it is emptied it

is again sent to nearest CSAV port, where the respective maintenance activities are held. "hus

from the entire process it is clear that, the container is moved couple of time with the vessel and

thus the operational costs are more when compared to the scenario, when it is moved as an empty

vessel and thus the overall costs can be saved and optimized as well. #ven the ris of imbalance,

uncertainty and information sharing is also reduced and thus this can be considered as the

optimized solution for CSAV.

2. Quality benets with empty container movement

Apart from the cost benefits and optimization, there are few $uality benefits for CSAV while

moving the empty container over the general logistics management. Information sharing and

banding with the third parties will be reduced and thus the logistic accountancy aspects can be

done in a more secure manner. As CSAV processes include %&&&&& containers maintain the

information sharing in a secure manner is always re$uired as a part of $uality control over the

company. 'ecision maing strategies can be well coordinated that were made at local level rather

than involving third party suppliers or logistics as with the empty container the corresponding

problems associated can be resolved at this level. (y moving the empty container over multiple

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locations will enhance the coordination in decision maing and thus enhances the $uality control

over shipment and logistics management of CSAV.

3. enets with forecasting mo!el

Forecasting model implemented by CSAV in the process of adopting the re$uired solution for the

empty container problem is proved to be beneficial in many aspects. #mpty Container )ogistic

*ptimization +#C* is the methodology adopted by CSAV to compromise the forecasting mode,

where the re$uired data is gathered and analyzed over the respective regional offices via the web

interface and thus the ease of access is achieved in this conte-t, where maintenance has also

become simple with the multi commodity +C networ flow as well. (ased on the actual

container demand, re$uired space can be created with the respective methodology based on the

information available against the implementation of forecasting models. C networ flow model

also contributes to the safety stocs and feeds movement and is one of the ey benefits with the

forecasting model implemented by CSAV.

". #mpty Container problem solution a!opte! by other

companies

#mpty containers are one of the substantial problems for most of the companies and the solution

adopted by them varies based on the operational capabilities. /hen the case with 0otterdam port

is considered, it followed the data driven approaches based on the level of information gathered

from multiple sources, where the top priority in this conte-t is given to the data accuracy and

guarantee by the company. #mpty container reposition strategies adopted are estimated on the

current day logistics and support from third party vendors, where CSAV never strived on the data

of third party and thus proved to be the secured and $uality measure followed by it.

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$. Cost re!uction system

Cost reduction is always important to optimize the resource utilization and improve the revenues

for any organization. Apart from the shipping logistics issues, similar problem can be considered

over software development and deployment level. /hen the software is ready for release and

about to deploy, all the $uality issues are pre1estimated and thus with the proper feedbac

control, most of the bugs can be resolved prior to the installation on production server. If the

similar problems arise once the software is deployed on the application server, changing a minor

aspect of the software will cost a lost and in some cases it leads to entire system crash. "hus theempty container problem with logistics can be applied to this scenario, where the direct

interaction clients will be reduced and based on the internal audit, all the possible post

production bugs can fi-ed before deploying the software at production site. /ith this

methodology, overall performance of the software can be optimized, while the cost of

maintenance is also reduced a lot.

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CSAVAssignment Final