CQM provides CARU with global insight into the supply chain

Paul continues: “A step in achieving our goals is the tool that CQM developed together with us. The algorithm gives us more insight into and control over our supply chain processes. For instance, we can see the optimal container movements, and the tool displays options to act proactively on expected shortages and surpluses of containers in specific locations. Previously, decisions were substantiated with static Excel files, and we made many assumptions based on knowledge and experience. We still have these in-house, but now they are supported by a dashboard and the ability to calculate exactly what impact a choice has. Additionally, we used to make calls back and forth to offices abroad and had to take the time difference into account. That is all a thing of the past now; we can make fact-based decisions and see at a glance what is needed to align supply and demand globally. This saves costs and ensures more efficient logistics.”

He continues: “The tool has been implemented on a small scale and the initial results are positive. We expect to start using the algorithm on a large scale by the end of 2023. From then on, all our employees will be able to see what is happening within our supply chain in the dashboard. Additionally, we can make smarter choices, because the tool optimizes and investigates the robustness of every choice through scenario planning. It also includes a forecasting component, and with these predictions, we try to look ahead a few weeks. For example, where we previously decided to sell containers locally, we now rent them out for one-way use (one-way lease) and sell the container at the destination. We can now see in advance that this decision leads to better results in the long term. The service towards our resale customers will improve significantly because we provide input for their inventory management. With the tool, we provide better insight into container numbers and their expected arrival.”