05/24/24
The Ukraine-Russia conflict has many within the Department of Defense re-evaluating combat operations between near-peer combatants. A key focal point is the demand for and capability to produce large-caliber munitions in far greater quantities than previously anticipated.
Responding to this increased demand, a large defense contractor was charged with the responsibility to increase production as quickly as possible. Having selected both the U.S. production facility site and product manufacturers, the contractor needed to develop a logistics plan for the rapid, efficient transport of heavy and oversized equipment from multiple international and domestic points of origin to the U.S. production site.
THE CHALLENGE:
Sensitive equipment by way of a mandated schedule required a concerted effort by all project stakeholders.
Among the numerous logistical challenges were:
- Establishing a shipping schedule to coordinate the manufacturing equipment from three international locations to one domestic production site.
- Ocean transportation must adhere to the U.S. Cargo Preference Act, which governs the percentages of cargoes procured, furnished, or financed by the U.S. government which must be transported by privately owned U.S. commercial vessels.
- Door-to-door movement of approximately 200 ocean containers and/or special equipment:
- Navigating limited equipment availability within smaller port terminal locations.
- Identifying equipment types based upon conveyance in-gauge specifications.
- Meeting ocean carrier data and document cut-off requirements for cargo classification, to include in-gating equipment within the port of embarkation terminal.
- Presenting customs declaration documents to U.S. brokers in advance of cargo arrival to ensure seamless pre-clearance.
- Coordinating inland transportation to meet required delivery timelines while managing destination site off-loading capabilities to remain within ocean carrier free time allowances, thus reducing detention and demurrage penalties.
THE SOLUTION:
Interstate established an innovative and transparent project plan for the client by incorporating the expertise of trusted partners from the beginning. Throughout the project, we maintain concise management and overall transparency based on the established plan.
- Strategic Planning: In our eight decades of logistics experience, we have developed a strong network of global partnerships. With this network already in place, we assemble the most experienced geographic expertise in developing and executing the shipping of multiple cargo types on time and damage-free.
- Transparency: Our client and partners are always active participants in the development and execution of the logistics plan. They receive designation within our pricing proposals.
- Visibility: We allow real-time cargo visibility through daily and weekly summary distribution of transit
progression and participation in regularly scheduled conference calls. The client remains aware of the cargo’s whereabouts to readily execute changes and contingencies that often occur during a large-caliber construction project.
APPROACH:
Interstate’s all-encompassing approach served as the foundation of this project. Examples of our approach include:
- Regular meetings with essential participants—i.e. agent partners, clients, government agencies. This real-time transparency facilitated agile response times for seamless execution.
- Active reports and summaries which fostered ongoing supply chain improvements and allowed for greater depth of understanding.
- Ongoing reports to regulatory agencies to ensure overall compliance.
- Creating a culture of trust and confidence amongst all team members to allow for honest, open dialogue, which naturally leads to a more team-oriented approach.
OUTCOME:
Over a seven-month period in 2023, all manufactured equipment intended for the destination production site was delivered on time. The project met the client’s commitments to their own overarching contractual client. Production output is now the focus of the newly delivered manufactured goods, thus sealing Interstate’s support of the U.S. Army’s efforts to deliver on the demand for greater quantities of large-caliber munitions.
