Port Congestion and Container Prioritization

In recent times, Port Gridlocks have become a common issue in the country. There has been significant disruptions over the past months. See “Retailers’ frustration with West Coast gridlock hits the boiling point”. The Pacific Maritime Association, is still in contract talks and negotiation with International Longshore and Warehouse Union. Such negotiations have reduced the speed of five largest ports on the West Coast. It is reported that the productivity had dropped by 30% to 50%, in recent times. Every industry is affected by this complete gridlock of West Coast Ports, especially the automotive and the retail sector. A recent blog on Asian supply lines hit by U.S West Coast ports explains about the impact of this gridlock on the automotive sector. Companies started complaining that they do not have sufficient supply to run the production lines. While we are now headed towards an apparent settlement, it is not clear how long the settlement will last. Many believe that it is just a Matter of Time Before West Coast Port Labor Issues Recur.

Today’s businesses are impacted by multiple variables such as these gridlocks. The supply chain teams have to consider all of these variables, on a regular basis, to serve business needs. With organizations constantly seeking to optimize supply chain, the most efficient way to get visibility into all supply chain entities or disparate processes is by continuous monitoring of transactions, supply chain events, trends and disruptions.

Inbound shipments and containers are the backbone of an extended supply chain. Unfortunately, when the containers get stuck at ports, it affects production lines, inventory management, sourcing, transportation and distribution. Above all, companies need to worry about meeting committed customer demands, replenishing shelves, and making revenue targets. Due to such gridlocks “On-time” delivery becomes a big concern, ultimately affecting fulfillment and customer relationships.

With constrained ability to clear containers and shipments at the ports, comes the need for the ability to PRIORITIZE which containers needs to be cleared first. This requires having a holistic, real time view, into customer plans, orders, date commitments, customer priority, past misses, overall procurement situation, on hand inventory, and in transit information. This is a complex problem.

OpsVeda Operational Intelligence platform alleviates this fundamental need for Container Prioritization by integrating data across Sales, Supply, Inventory, Allocations – and serves visibility in the form of continuously monitored, end user focused, “workbenches”.

OpsVeda’s automated solution eliminates the traditional process of extracting supply chain data by querying multiple data sources via an army of people working on massive excel spreadsheets. Thereby, eliminating manual errors and large labor cost. With real-time visibility into all open transactions, customer priorities and revenue targets, vis a vis the location of inbound inventory in containers, stock quantity, rack numbers, pallets etc. companies can manage and minimize disruptions, and make smarter decisions that maximize profits with agility and responsive towards such gridlock situations.

OpsVeda Operational Intelligence, powered by SAP HANA, fits exactly into today’s dynamic business model – providing 360⁰ supply chain visibility into your operations, to make intelligent decisions proactively. “Being proactive means being reactive, ahead of time!”… Anonymous.

To learn more visit OpsVeda.com.