Challenge given in scope:
Identification of process lapses while importing huge quantity of bulk cargo approx. 6000 MT per month ofsteel plates, structures, and pipes coming in mixed condition in a single shipment.
The delays in the taking of deliveries from port resulted in exorbitant demurrages charges.
To find the root cause of the incurrence of port demurrage charges, we conducted a detailed analysis and identified some key reasons that caused delay.
- Internal processes of the customer
- The client’s coordination with the service provider
- Poor port infrastructure and procedures
After understanding the major loopholes, we deputed experienced team members and positioned them at the customers’ offices to ensure correct documentation and communication with our team. This initiative had the potential to take care of 40% delays, which were plugged in immediately by our experienced team members operating from customer offices.
We then mapped the challenges at the port and escalated it to higher authorities of the port. Further, we initiated availing special facilities operated by the port to ensure goods are discharged and kept in a sorted manner for smooth custom examination and forward dispatches.
We could reduce the demurrage by more than 70 % through our operational expertise, bringing our client a savings of INR 2.5 crs per month ( USD ).