TEOZ
TEOZ is a multinational company dealing in construction equipment manufacturing and distribution and it has production affiliates across the globe. They also have a good spare parts product segment which guarantees continuous service to the company’s products.
| At Elicit Technology, the skills they have brought in terms of implementing CargoWise integration have made a fantastic impact in changing the overall way in which my organization handles its import and export regime; it is financially rewarding because we cut considerable costs tremendously, and logistically, how our supply chain has been impacted is fantastic. Geodrin CEO, TEOZ |
Challenges Faced
Market Volatility: TEOZ was affected mainly by varying tariffs and conditions of the market whereby approximately 40-50 percent of their products involved re-exportation. This requirement was unpredictable, putting pressure on the necessity for timeliness and organization when it came to both incoming and outgoing shipments.
Competitive Pressure: Market demand continued to call for shorter delivery cycles to which TEOZ also had to adapt to remain relevant.
Custom Shipping Solutions: The products that TEOZ developed were quite unconventional in shape, which posed the need for a solution to minimize the cost of shipping as well as provide for protection of their products during shipment.
Solution
Elicit Technology, applying CargoWise integration services, providing a holistic approach to address TEOZ’s complex challenges:
- CargoWise integration built a full solution improving the firm’s import and export business using risk mitigation, cost avoidance, and improving the firm’s supply chain.
- Offered services for packing and construction at the client’s facility to create and design specific containers meant to transport TEOZ’s industrial products.
- Applied its own custom and trade services experience and saved TEOZ a lot of money on consultants while lowering the company’s prices in the marketplace.
Results
Significant Cost Savings: Reduced selling processing fees by $400K per annum from a previously unknown amount; reduced brokers’ fees by $600K.
Export Efficiency: Achieved an average of $47K of export duty per eight containers while getting an exemption of duty on scrap materials.
Long-Term Partnership: The seven-year contract with TEOZ was renewed, proving the appendix of cooperation.
Conclusion
TEOZ managed to resolve various supply chain issues, improve functionality, and cut costs by leveraging the functions of CargoWise integrated with the help of Elicit Technology. Such partnership benefitted them also in enhancing the efficiency of their distribution chain and the overall firm’s performance in a highly unpredictable context.
