Special Projects Case Study
Designing a Solution Post-Entry into the US
An Italian multinational renewable energy company, headquartered in Rome, faced the challenge of importing containers for a new production location at a remote job site on the United States' West Coast. The project required strategic planning, operational excellence, and the utilization of technology to overcome the unique obstacles presented by a live construction site with no dock or building, dirt roads, and a complex receiving schedule.
The import process involved sourcing materials from manufacturing facilities overseas. The project was strategically booked across multiple ocean carriers, utilizing a combination of Door-to-Door and Door-to-CY contracts to secure optimal rates and access points at entry ports throughout the US West Coast, including OAK, LAX, and SEATAC. The overarching need was for ITS to design a solution post-entry into the US.
Design
Prior to execution, the design phase focused on identifying containers and their contents, involving the extraction of materials from terminals, subsequent storage, and staging. Strict delivery appointments based on commodity types were scheduled, utilizing the ITS tech stack for West Coast container location visibility. In the discovery phase, ITS identified an opportunity for street turning containers to an export Line of Business (LOB), eliminating the need to return containers empty and saving on line haul, chassis, and storage costs.
The delivery location, situated in a dynamic construction setting without structures or existing infrastructure, presented unique challenges. Drivers navigated freshly cut roads in a remote central Nevada region, requiring specialized training and certification for site access. ITS sent managers to review on-site operations and establish Standard Operating Procedures (SOPs).
SOPs were developed based on the design work with client approval, ensuring that all ITS operations team members, drivers, and management underwent training and certification before executing business operations. The 1500-container project’s schedule was finalized, featuring a 24/7 operational support team and a dedicated driver pool to ensure containers were delivered every 1.5 hours, seven days a week, 24 hours a day.
Additionally, a comprehensive solution was implemented before execution to address the renewable energy company’s project challenges. Collaborating with ITS Logistics, the company engaged in network planning, supply chain design, and invested in operational excellence. This strategic approach contributed to the successful execution of the solar panel import project, demonstrating the effectiveness of comprehensive solutions and operational partnerships in overcoming complex supply chain obstacles.
Execution
During the operation, the ITS team assigned an operations team consisting of eight people and a manager with a Director and VP executive sponsor for escalation. Additionally, there were 20 dedicated drivers specifically designated for on-site delivery, including a pre-pull driver pool and a long-haul driver pool.
Leveraging ITS’ established commercial relationships with ocean carriers, the client secured ITS on door contracts as a Customer Nominated Trucker (CNT), allowing them to employ a single final mile drayage provider irrespective of ocean contract or port of entry. The integration of ITS’ technology stack provided comprehensive end-to-end visibility throughout the entire container lifecycle, from origin to delivery and container turn/termination.
To facilitate the operations, four yards were onboarded—one at each port and one at the destination—to marshal drivers. The execution was enhanced using a tech stack, including a custom Transportation Management System (TMS) and a visibility platform UI for real-time updates and reporting.
During the execution phase, the renewable energy company and ITS Logistics collaborated closely, pre-sorting and staging containers based on SKU for efficient unloading at the construction site. Maintaining ongoing communication and coordination was crucial to meeting the detailed receiving schedule. Technology played a significant role as containers were strategically called based on construction progress, and local authorities were engaged to ensure smooth operations on the dirt roads.
Upon destuffing, the containers were street turned to a major exporter in the region that utilized 30-day free time export bookings, which significantly reduced the need for empty return deadhead and box detention, resulting in cost savings for the renewable energy company. The execution of the project required a substantial investment in on-the-ground personnel to ensure seamless supply chain operations. The renewable energy company’s team collaborated closely with the onsite construction team, implementing the developed SOPs. They managed the complexities of a live construction site, demonstrating meticulous planning, coordination, and operational excellence in the absence of traditional infrastructure.
Results
The renewable energy company’s strategic approach and operational excellence resulted in remarkable outcomes. Successfully executing the solar panel import project and collaborating with relevant partners led to a notable 50% reduction in export rates for all involved parties. In contrast, those not utilizing ITS faced challenges such as DEMU/PD (Demurrage/Per Diem) issues.
This success was attributed to the preparedness of the pre-pull driver base and strategically located yards, which prevented DEMU concerns. Additionally, the practice of street turning for export helped stop the clock on the import contract, avoiding PD charges. The 50% reduction in long-haul rates applied to both the importer and exporter, showcasing the effectiveness of the employed strategies. These statistics highlight the advantages of utilizing ITS in contrast to other providers, whose challenges were reported in news coverage or industry indexes.
The project also underscores the importance of investing in people and operational excellence to navigate a dynamic supply chain environment.
Achieve your most ambitious supply chain projects with ITS.
ITS specializes in developing custom methodologies to deliver distinct and tailored solutions, ensuring your unique project requirements are met with precision and innovation.