In late 2014, the Ministry of Commerce of the People's Republic of China officially announced the fully operational “National Trade Logistic Standardisation Specialisation Project”. As Loscam is one of the project's first focus units, we've accelerated the pace in our national pallet pooling construction.
Exploring with new customers the benefits of pallet standardisation. Studying the shift from self-purchase to rental mode operation. Actively promoting the interrelationship, cooperation and palletisations between enterprises. These are all initiatives adopted by Loscam which could help companies cut operational costs, raise efficiency and develop a seamless pallet pooling system which promotes logistic standardisation, and the company is very proud to have applied these practices successfully in close collaboration with a number of leading companies who have massive influence over national commerce, helping to extend their system across upstream and downstream logistic operations.
Meet Suning, a highly valued Loscam retail enterprise partner.
In cooperation with Loscam, Suning actively promotes and participates in palletization with upstream suppliers to facilitate increased efficiency and decreased operational costs, substantially supporting rapid business development.
The background. Challenges that come with rapid growth.
Suning is a leading business enterprise in China, with a huge range of offerings including traditional household appliances, consumer electronics, department store items, daily utilities, books and virtual products. With more than 1,600 below-the-line retail stores and suning.com above-the-line, Suning sits comfortably in the three big B2Cs in the country.
With the business experiencing rocket growth, the company's SKU quantity and scale are increasing tremendously. These products are mostly easily damaged items with a short lifespan but low value, fast moving consumer goods, so speeding up product turnover has become Suning's priority.
The solution. Because working together, we can do anything.
Suning started to strategically push forward with pallet pooling construction. On one hand, Suning started supply chain standardisation across large scale facilities and equipment such as rackings, pallets, forklifts, building and infrastructure for palletisation. On the other hand, Suning lined up with Loscam, joining hands to promote seamless palletisation application.
They selected beverage, personal care products, oil and foodstuff suppliers for massive data collection and analysis in order to compare stocking quantity, product origin, ordering frequency and TIHI information on each individual supplier. In August 2015, Suning commenced palletisation with Yihai Kerry Investment Co. Ltd. (known as YHK Group) in partnership with Loscam.
A special working group was set up by Loscam to facilitate discussions regarding process re-engineering. It was unanimously agreed that palletisation was the perfect solution.
As a result of adopting Loscam's pooling palletisation model, the loading time for a 9.6m truck has decreased from 1.5 hours to 30 minutes - and the truck can perform immediate racking. In addition to the prominent benefit of raising operational efficiency, product damage is reduced by 30% and the decrease of quantity mismatch due to reduced labour maneuver leads to a total cost saving of 50%.
It is through collaboration among all supply chain stakeholders that we can truly enhance the benefits of palletisation. On the basis of the proven success with the implementation of palletisation for Suning clients, they will continue to work with Loscam to participate and promote collaboration opportunities with both upstream and downstream suppliers.
This is the definitive way forward to realise efficiencies across the whole supply chain and reduce logistic costs, all of which leads to increased enterprise competitiveness.
BIGGER AND UNIVERSAL MUTURAL BENEFITS ACROSS THE WHOLE SUPPLY CHAIN:
- Increases transparency of information flow, allowing ease of stock control
- Reduces reserves and associated costs, minimising product supply time
- Increases supply capability
- Reduces cost from product damage and quantity mismatch
- Reduces the need and therefore costs in transporting empty pallets
- Strengthens retailer competitiveness
- Enhances suppliers' experiences
- Increases customer satisfaction and approval
- Dramatic decrease in logistics costs
