Case Studies
When sourcing from multiple suppliers across China, fragmented LCL shipments can quietly erode margins and create operational chaos. Read more to see how Yamato’s Buyer’s Consolidation Program helped a Singapore-based importer streamline ten separate supplier shipments into a single FCL container, reducing freight costs, improving inventory predictability, and simplifying the entire import process from Shanghai to Singapore.
Background
Our client was sourcing from 10 different suppliers across China, with each supplier independently shipping goods as separate LCL (Less-than-Container Load) cargo. This fragmented approach created a cascade of operational inefficiencies: multiple shipping arrangements and arrival notices led to redundant administrative work; individual LCL shipments inflated logistics costs; inconsistent shipping schedules made inventory management unpredictable. Collectively, total shipping costs were eroding 15–20% of the client’s product margins.
Solution
Yamato implemented a Buyer’s Consolidation Program to bring order to the client’s supply chain. All 10 vendors were required to deliver goods to Yamato’s Shanghai consolidation centre within a defined 5-day window. Upon arrival, goods were inspected and tallied before loading to ensure accuracy and quality.
Yamato then consolidated all cargo into a single 20ft or 40ft container. One Master Bill of Lading was issued for the entire shipment ensuring that title of goods remained with the client and that GST input tax claims with IRAS were fully compliant. The consolidated container cleared Singapore Customs in a single process and was delivered directly to the client’s appointed warehouse. In order to remain updated on the parcel’s status, both the 10 vendors and the client utilised Yamato’s tracking platform to monitor shipping milestone completions (from vendor gate-in at Shanghai, China to final milestone clearance in Singapore).
Results
The Buyer’s Consolidation Program delivered measurable improvements across the client’s operations. Centralising multiple supplier orders into a single FCL (Full Container Load) shipment eliminated the inefficiencies of fragmented logistics. The substantial freight costs, which previously eroded 15–20% of product margins were significantly reduced and the premium per-volume costs of smaller LCL shipments were removed. Synchronised deliveries meant all inventory arrived simultaneously, removing the unpredictability of staggered schedules and enabling more reliable stock planning. Finally, moving goods in a sealed, dedicated container reduced handling touchpoints significantly, resulting in a notable decrease in cargo damage.
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