Neptune Orient Lines' (NOL) CIO Wu Choy Peng observed that markets were getting increasingly volatile with changing consumer demands and supply shifts, while manufacturing bases were adding greater complexity to shipment planning and order fulfillment for its subsidiary APL Logistics.

APL Logistics, NOL's supply chain business, provides international, end-to-end logistics services and solutions, employing the latest IT and data connectivity for maximum supply chain visibility and control.

Complex chains

Wu said its customers' suppliers, manufacturers and consumers operate in different time zones, currencies and under diverse types of infrastructure. They are often connected by a complex and dynamic maze of possible trade lanes through road, rail, air and sea.

NOL understood that optimizing a complex supply chain network is vital in a rapidly changing global marketplace. Attempts to optimize international shipments have previously relied on linear models, which were not sophisticated enough to handle the numerous variations inherent in today's complex supply chains, said Wu.

"In December 2010, to meet customer expectations for greater cost efficiency, APL Logistics implemented ShipmentOptimizer, a technology platform that automates the planning process, supports critical decision making and ensures that shipment planning is optimized at all times according to the customers' requirements."

ShipmentOptimizer, she revealed, is the first product of its kind in the global supply chain management systems market for planning international freight transportation. The Web-based technology platform uses algorithms to help customers achieve the best ocean route and lead times; maximize container load utilization; and optimize shipment costs.