GoComet > Case Studies > Tyre Manufacturer Overcomes Suez Canal Blockade with IoT Solution

Tyre Manufacturer Overcomes Suez Canal Blockade with IoT Solution

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Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Analytics & Modeling - Real Time Analytics
Applicable Industries
  • Automotive
  • Retail
Applicable Functions
  • Facility Management
Use Cases
  • Real-Time Location System (RTLS)
  • Supply Chain Visibility
About The Customer
The customer is a Mumbai-based global leader in tyre manufacturing, with production facilities spread across Israel, China, Europe, India, South Africa, the USA, and Mexico. The company specializes in application-specific tyres for the automotive industry and multi-purpose tyres for other sectors. The brand was significantly impacted by the Suez Canal blockade in March 2021, which halted both its westbound and eastbound shipments, affecting cargo worth $18.5 million. The blockade also caused delays in the delivery of finished goods to eight customers across Europe and the US and disrupted the supply of raw materials to its production facilities in India.
The Challenge
A leading tyre manufacturing company based in Mumbai, India, with production facilities across the globe, faced a significant challenge due to the Suez Canal blockade in March 2021. The blockade, caused by a skyscraper-sized container ship named Evergreen, left about 200 ships stranded at either end of the canal, severely impacting global trade. The financial implications were massive, with the blockade amounting to a loss of nearly £7 billion of goods a day, or approximately £290 million an hour. The tyre manufacturer's westbound and eastbound shipments were halted, impacting cargo worth $18.5 million. This resulted in delays in the delivery of finished goods, affecting eight customers across Europe and the US. Furthermore, the supply of raw materials to production facilities in India was severely disrupted, causing significant interruptions in the production cycle.
The Solution
In response to this crisis, the company sought a tool that would provide visibility into their shipments' locations, the duration they would remain stranded, and rich analytics to forecast future scenarios. GoComet's GoTrack Automated Shipment Tracking system was the chosen solution. GoTrack provided real-time visibility, offering accurate insights on vessels rerouting via South Africa and those waiting for the canal to reopen. The system also provided predictive and descriptive data, forecasting delays and updating ETAs based on on-ground developments and advanced data analytics. Additionally, GoTrack generated automated daily reports on the status of the ships carrying the company's cargo. This solution allowed the company to make data-driven decisions to navigate the crisis, reallocate resources, better manage production cycles, and enhance customer experience by sharing live tracking updates.
Operational Impact
  • The implementation of GoComet's GoTrack Automated Shipment Tracking system had a significant impact on the company's operations. With real-time data-driven insights, the company was able to make strategic decisions to weather the crisis. The visibility provided by the system allowed the company to reallocate their resources and better manage production cycles, leading to significant cost savings. Furthermore, the automated reports generated by the system enabled the company to share live tracking updates with their customers for their specific orders. This transparency not only enhanced the customer experience but also strengthened business ties, proving instrumental in maintaining customer relationships during a challenging period.
Quantitative Benefit
  • The company was able to manage a crisis impacting cargo worth $18.5 million
  • The solution helped in reallocation of resources and better management of production cycles, resulting in savings of $800K
  • The company was able to maintain customer relationships by providing live tracking updates for specific orders

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