Jennifer Suing

Go for Sea Freight Cost Saving Project UGEC Goes Sea Freight Continuous growth of UGEC is inevitable. In November 2009, UGEC engaged in VMI Warehousing to strengthen our relationship with our valued client. We started to manage satellite fg warehouses from North to South Luzon and even in Visayas. We transported our shipment thru land and air to support the challenging client’s requirement. In early months of 2011, our Top Management posed a challenge to be cost effective. In collaboration with our stakeholders, Outbound Logistics responded to the challenge. Thus in May 2011, we started to transport our items thru Sea freight instead of Air freight. Sea freightage is not only the most cost effective way to transporting goods moving to another continent but it also supports the “Greening the Planet” Program as it consumes lesser fuel. Cost Comparison Covering May to July Destination: Cebu 530 boxes will cost P516, 750 P 975.00 per box Air Freight Destination: Cebu 530 boxes will cost P87, 980 P 166.00 per box Savings of P809.00 per box Sea Freight Challenges to effect the initiative: Late production of finished good items due to Inadequacy of Sales Projections Changing and rush client requirements Unavailability of production materials Ineffective operations planning Production capability What shall we do to improve? Effective understanding of client requirements and more frequent alignment of Sales Projections Proper planning of materials and machines Stronger collaboration within UGEC stakeholders Thank you