A client in the petrochemical industry had a Vietnam based receiver who required delivery in IBC’s. This was due mainly to space constraints at the receiving plant, but had considerable cost and operational implications.
The cost of shipping in IBCs from Europe to Vietnam was extremely high approximately ($3,000 per container more than a flexitank). In addition, the IBC’s accumulated at the receiving plant, requiring costly disposal fees after discharging.
After analyzing the supply chain problems, it was proposed that the customer switch the main element of the transit from IBC’s to flexitanks, before reloading into IBC’s for the final delivery. This would lower the shipping costs and times as higher volumes could be transported.
As an added value service, a weight-in weight-out mechanism was included to determine if the delivered quantity was correct.
The receiver was pleased with the new system which allowed for Just in Time delivery and ample supply of product at destination. There was no longer any need for them to source IBC’s at origin or loading point, thanks to the full service solution provided.
The switch generated a cost saving of $54,000 per year to the client.
