Reduce Shipping Costs and Transit Times with LCL Express Platinum
"The outcome has made a significant difference to Entrust. We have seen improvements in our supply chain efficiency and significant cost savings. In terms of benefits, Entrust has seen a reduction in delivery times by more than half of FCL Ocean containers from Asia Pacific origins."
Kirenia Mesa
Transportation Manager, Entrust
Minnesota-based company Entrust is a global leader in identity and security solutions. The company is headquartered in Minneapolis with offices in other locations worldwide, including Hong Kong, Australia, and the Czech Republic. Expeditors has been a strategic partner of Entrust for several years as the company has grown through multiple acquisitions.
Stemming from the COVID-19 disruption to global transportation networks, Entrust faced challenges in managing its supply chain effectively during COVID-19, which led to delays and increased costs.
The Opportunity
Given the strong demand for air freight from the Asia Pacific region coupled with reduced capacity, Entrust's suppliers faced a choice between high per-kilo costs for air freight and long and unpredictable transit times for ocean freight. LCL and FCL shipments from Asia Pacific origins to the United States experienced unpredictable transit times of +50 days. Air freight per-kilo costs increased to more than $7/kilogram as air freight demand increased amid capacity bottlenecks from China and other Asia Pacific origins.
Our Solution: Time and Cost-Effective
Expeditors' LCL Express Platinum (LCX Platinum) solution presented a great transportation opportunity, with cost-effective options compared to air freight and very reliable and short transit times compared to FCL ocean shipments. Expeditors went above and beyond by providing a customized logistics solution tailored to Entrust's specific needs, ensuring timely deliveries from its suppliers, and minimizing supply chain disruptions. The LCX Platinum services also prioritizes security and traceability, with the shipments moving within the Expeditors network, managed directly from origin to door by Expeditors employees, and allowing monitoring in transit through our online tracking system.
The Results
LCX Platinum reduced delivery times for ocean containers from Asia Pacific origins from 52 to 58 days for FCL and LCL shipments to only 20 to 25 days with LCL Express Platinum. Entrust also realized significant cost savings of approximately $3.50/kilogram compared to air freight.
Our teams understood that through this successful partnership, the outcome improves visibility, control, and reduces costs for all parties in the supply chain.
