New Exchange Import Contract Promises Efficiency, Savings
From LG, IT, PZ and MD: Dung Huynh, Eugene Cheng, Sheila Pyle, Gwen Grant, Tracy Killingsworth, Renee Clark, Brenda Hester, Thomas Sanders, Demeshia Booker, Karen Skinner, Lisa Solis, Lt. Col, Alicia Jackson; APL Logistics: Nicole Hackman, Ashley Payne; APL Liner: Will Martin.
To pursue efficiency and save money, the Exchange has awarded an import contract to APL Logistics (APLL). The Logistics, Merchandising, Information Technology, Procurement, Finance & Accounting and Human Resources directorates worked together on the contract.
The Exchange solicited a new contract because APLL’s previous contract was set to expire Feb. 24. To secure the new deal, APLL offered lower rates and bundled extra service fees into the base ocean freight cost.
Savings from the deal will strengthen the Exchange’s support for critical Quality-of-Life programs through increased dividends. The figures are estimated at $2.5 million annually and potentially $12.5 million over five years based on the amount spent for ocean freight in the 50 heaviest sea lanes used by the Exchange.
“The Exchange is committed to continued internal and external partnerships that meet dynamic demands of the retail market,” said Morgan Meeks, vice president, transportation operations.
From furniture to toys
APLL uses American President Lines, a global ocean carrier, to prioritize Exchange shipments with a “no roll” guaranteed import service. Cargo that cannot be loaded because of vessel capacity is rolled to another ship. The contract with APLL guarantees Exchange cargo will make sail on schedule.
“The Exchange is committed to continued internal and external partnerships that meet dynamic demands of the retail market.”
-Morgan Meeks, vice president, transportation operations
All imported products—from furniture to apparel to toys—will ship under this new contract.
5 features of new contract
The contract includes:
- Landed cost analysis: This involves costs related to importing purchased goods. The total cost of a landed shipment includes purchase price, freight, insurance, custom duties and other costs up to the port of destination. This will allow the Exchange to review profitability margins and make decisions on imported goods to include associated costs.
- Transportation cost management: Utilize APLL’s ocean freight business intelligence that details market trends and helps the Exchange track rate performance with cost-effective shipment management.
- Automated booking process: Eliminates the Exchange’s manual labor in reviewing line level shipment details with systemic rules. This will allow suppliers to book faster and support on time delivery.
- Improved forecasting: A pre-determined quantity of products ensures capacity is allocated during seasonality and other trends. Shipment volumes also support planning for least-cost routing.
- Container load optimization: APLL to provide origin consolidation capabilities to aggregate small orders coming from multiple locations optimizing full containers loads.
