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DSV India Consolidation DSV India Consolidation DSV’s Consolidation Concept Definition of DSV’s Buyers Consolidation Concept in Asia “Loading a container with multiple shipments from various suppliers for direct delivery to a single buyer overseas” Traditional Shipping Concept from India Order purchase per container basis Insufficient supplier communication Poor timing of order arrivals Poor match between supply demand Expensive cargo flow Risk for leftovers Container utilization not optimized Higher number of containers than necessary Overflow shipped as LCL Too many resources Common Challenges DSV’s Buyers Consolidation Concept Optimized container utilization Faster delivery at destination Visibility though DSV P.O. Management Reduced risk for damage and delay Reduced customs inspections Bonded and non-bonded CFS solution in Asia Order purchase per stock basis Better supplier control through DSV in Asia Significant transport cost savings Eliminate number of LCL shipments Multiple suppliers / one consignee Lower distribution costs at destination DSV’s Buyer’s Consolidation concept Scenario: A company is acting as a central purchase organization for several different brands. Logistically they have various warehouses in Europe Currently 80 suppliers from India are shipping their shipments into to one of the EU warehouses. Upon arrival in EU, the warehouse will split up and distribute the cargo to various warehouses depending on end user location Benefits: Cost savings Better container utilization Lower Warehouse cost in China No/less distribution costs in Europe Supplier control Minimize cargo handling DSV Proposal: All suppliers send their cargo into DSV Warehouse in India. DSV monitor and arrange the shipments depending on end user location. DSV plan according to total CBM to load FCL to the dedicated warehouse for the end user. DSV offer the client full visibility from the time cargo is received at our warehouse till it’
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