Case study 2 : Optimized Supply cost solutions for a key infrastructure project
AZKA re-engineered the logistics solutions with optimized costs for a key infrastructure project
Project included: Transportation of 104 Caravans, Steel Plates, Prefab Structures and Structural Steel from Door UAE, India and China to Door Basra
Opportunity for Solutions:
Reduced budget by International bank required for managing the logistics cost by almost 30% reduced budgets
Finding effective logistics solutions to minimise the losses despite reduced budget
Strategic Solutions offered:
AZKA reengineered total logistics cost with innovative approach and assisted client with optimized logistics cost
Considered various alternative markets to procure material, as a result the challenge of possible loses was overcome with thin profit margin
AZKA team worked on optimising the Logistics cost of Caravans with change in transport mode from low bed trucks to flat bed and from flat-rack cntrs to RORO on Mafi
The choice of Carvans brought the cost down by almost 25%
Change of procurement origin with merge-in-transit benefitted with further cost reduction of 20% for major project materials
Increased lot size for break bulk further enhanced cost of logistics by 30%
Outcome:
Client was able to start the project secured from Ministry of Iraq with costs reduced as desired
Achievements:
AZKA won client’s trust and became their alliance partner for all future business in Iraq
