Carrier Attempts to Boost Revenue by Achieving 95% On-Time Arrival | International Transportation Management Best Practices

Carrier Attempts to Boost Revenue by Achieving 95% On-Time Arrivals

Posted on June 21, 2010, 1:40 pm, by Emily, under TMS For Logistics Providers, Transportation Management.

Danish carrier Maersk has announced a new strategy they’ll be attempting this year, in order to boost revenue: 95% on-time arrivals. The company estimates that this could boost their revenue by as much as $250 million. According to an article in American Shipper, this is mainly because:

“At present, many customers use several carrier lines to spread out their transport risks. But a survey of 30 of Maersk Line’s largest customers found that if Maersk Line could deliver their cargo on time with 95 percent consistency, the additional volumes they would consider shipping with Maersk Line would be equivalent to a 17 percent boost in revenue.”

This initiative will save Maersk’s customers money as well. The article further states that a 95% on-time delivery rate equals $150 in savings per container to one customer that ships high-value cars from Asia to the US.

Maersk will also be implementing a bottle-neck prevention software tool on its Asia/Europe services. This type of software solution can be very useful for logistics providers, allowing them to provide comprehensive and timely data on purchase orders and shipments across all modes and trade lanes, enabling customers to analyze and improve their supply chain efficiency.

To learn more about Maersk’s new initiatives, please read the full American Shipper article here: Maersk: On-time focus could boost revenue 17%

Now if we could only get commercial airlines to follow suit…