Increasing supply chain visibility to reduce logistics complexities and costs

The background

Today, most FMCG companies rely on multiple partners to fulfil the needs of their complex supply chain strategy. Each product might require the transportation of several components, from multiple locations, shipped across a vast, complex network.

Companies often see logistics as a huge challenge that restricts their output. Enhanced end-to-end (E2E) supply chain management is a solution that removes unnecessary logistics complexities and gives a company more time to focus on product quality and costs.

The customer is one of the world’s largest manufacturers of oleochemicals and a global leader in processing and merchandising of edible oils. In 2019, they were ranked 258th in the Fortune Global 500.

The challenge

The customer was experiencing a lack of visibility at the PO level, which impacted their product selection and quality analysis. Initially, their offices in Asia issued POs to the vendors under their Cost, Insurance and Freight (CIF) conditions. Each vendor had their own freight-forwarders or carriers; in turn, they had their own set of details and contracts to manage.

In these conditions, our customer had a hard time tracking shipments and arrival times. They were dependent on the vendors inputting the data manually. They needed an integrated digital solution.

The company was also struggling with equipment availability at origin pertaining to Flexitanks. These are special boxes that are required for transporting olive oil and can be fit inside any regular container. Flexitanks require a thorough review before and after installation to ensure that the quality can be retained throughout the journey.

Finally, the customer was losing control of their logistics costs and without visibility, they were unable to properly analyse the total cost to serve. The lack of real-time management of information between them and their vendors was proving troublesome to prevent any stockout situation.

Our solution

With the help of our team of expert analysts, we implemented an integrated digital solution with an end- to-end approach that alleviated all their issues surrounding logistics and supply chain management. Leveraging our years of supply chain expertise, a centralised platform was provided.

We focused on

• Providing end-to-end visibility through the MyMaersk digital portal so that vendors, along with those at the customer’s offices in Iberia and Asia, could all manage information at the same time.
• Reliable end-to-end services with full-time equipment availability (Flexitank and Thermal blanket installation) at origin.
• Providing one single point of contact to vendors and acting as an integrated partner of our customer’s supply chain.
• Coordinating the inland haulage so that vendors only needed to disclose availability of product and pick up date.

The results

Our extensive analysis and research of the customer’s supply chain management issues were critical when developing an appropriate supply chain strategy for them. They were quickly able to have total control of their upstream logistics with E2E visibility while keeping the overall logistics cost under control. They succeeded in reducing complexities and facilitated a seamless exchange of information with their vendors.

The customer benefited from

• Improved ease of doing business and 100% coverage – from plant to port.
• End to end visibility starting right at the PO level.
• The ability to efficiently handle day to day contingencies with minimal delays.
• Prevention of stockout situations through contingency plans for any registered exceptions.
• Reduction of logistics costs and complexities.
• A newfound focus on product selection and quality checking.