The Transformative Potential of Accurate Vessel Movements in the Supply Chain

The shipping industry is the backbone of global trade, and the efficient management of vessel movements is crucial for a seamless supply chain. In this blog, we explore the challenges faced by the supply chain in Australia and New Zealand (ANZ) due to inaccurate vessel movements and the immense benefits that could be reaped by addressing these challenges.

Challenges Faced by the Supply Chain:

1. Uncertain Planning and Scheduling:

• Inaccurate vessel movement data leads to uncertainties in planning and scheduling for importers and exporters.
• Delays in vessel arrivals or departures disrupt inventory management, leading to stockouts and inefficiencies in the supply chain.
• It’s difficult top consider everything in planning, from weather, tidal impacts as well as an understanding of how the vessel is worked on the port.

2. Inefficient Port Operations:

• Ports and terminal operators struggle to optimise their operations without reliable vessel movement predictions.
• Resources need to be synchronized and there can be wasted when there are delays which is costly.

3. Increased Costs and Dwell Time:

• There is an people cost overhead in the calls, emails and meeting around accurate vessel timing that is both costly and frustrating, they resources could eb working on higher value activities and often these are out of normal hours.
• Freight forwarders and logistics providers face higher costs and dwell times at ports due to mismatched cargo movements with vessel schedules. Demurrage costs and operational inefficiencies add to the financial burden.

4. Subpar Customer Experience:

• The lack of accurate vessel movement data affects customer experience adversely.
• Importers and exporters find it challenging to manage customer expectations and provide reliable delivery estimates.

The Value of Accurate Vessel Movement Predictions:

Real-time and precise vessel movement predictions, offering significant value to the entire supply chain ecosystem.

1. Time and Cost Savings:

Optimised logistics processes through accurate vessel movement predictions result in reduced lead times and operational costs. Businesses can achieve substantial cost savings and gain a competitive edge in the market.

2. Increased Operational Efficiency:

Real-time vessel movement predictions enable stakeholders to streamline operations and reduce bottlenecks across the supply chain. Enhanced resource allocation leads to improved operational efficiency.

3. Informed Decision-Making:

Reliable vessel movement data empowers stakeholders to make informed decisions promptly. With real-time insights, businesses can adjust their plans, mitigate risks, and seize opportunities effectively.

4. Sustainability and Environmental Impact:

Optimised vessel movements contribute to reduced fuel consumption and emissions, promoting a more sustainable supply chain. Predictive Shipping aligns with environmental goals and fosters responsible business practices.

A case study: Revolutionising the Maritime Supply Chain in the Baltic Region

The Problem

Actors in the maritime supply chain in the Baltic region did not have up-to-date shared knowledge of current and future vessel schedules. This led to unnecessary manual work and makes operational planning less efficient.

 Solution

A machine learning system that monitors incoming traffic for all ports in the Baltic region, providing current schedule predictions and up-to-date traffic events. The system integrates global vessel data with regional port call plans, weather information, and other relevant factors.

The benefits effected everyone from port operations planners and coordinators (e.g. terminal operators, agents, port authorities), port service providers (e.g. towage, pilotage), cargo owners.

By aggregating port call plans from all ports in the region and combining these with vessel-specific voyage predictions, advance visibility of short sea arrivals is significantly extended.

This solution by Awake.ai utilises machine learning to remember past events and how various factors have affected a ship’s arrival time. This enables the system to learn the normal deviations for a particular locality and adjust its calculations accordingly, reducing data fragmentation and generating more accurate schedules.

The challenges posed by inaccurate vessel movements in the supply chain are significant and require attention.

Real-time and accurate vessel movement predictions will revolutionise supply chain operations in Australia and New Zealand, bringing about enhanced planning, efficient port operations, reduced costs, improved customer experience, and a more sustainable approach to trade.

About Platform8

Platform8 enables the future of sustainable supply chains. We believe that by connecting digital communities and enabling them to make decisions beyond just economics, they could drive lasting change in the way we do business. This belief led to the creation of Platform8.