Weaving lifestyle logistics solutions into Jay Jay Textiles’ supply chain management to advance their business expansion.
Background
Starting their business over 50 years ago as a vertically integrated manufacturer of cotton knitwear for children’s apparel, Jay Jay Textiles set up their manufacturing units in India, Sri Lanka and Bangladesh. Recently they have branched out to Ethiopia to cater to reputed retailers in the US and EU, with three factories in the Bole Lemi Industrial Park, Addis Ababa.
Challenge
Uncoordinated handovers and unmissable gaps in communication, among other challenges disrupted their operations and supply chain. This was especially because Jay Jay Textiles were working with multiple forwarding agents for their imports and exports.
Add to this were high costs due to cargo rolling in the congested Salalah Port, continued delays of up to two to three weeks on their import leg from Tuticorin, and the cumbersome customs clearance processes.
To seal the struggle was the start of the fertiliser season in Ethiopia when the local truckers were diverted to transport fertilisers and progress the agricultural industry in the country. This led to the difficulty of securing truckers to transport goods out of Ethiopia to Djibouti, for shipping to the US.
Solution
Jay Jay Textiles needed a singular reliable source to smoothen out their roadblocks throughout their trade journey. Maersk stepped up to be this source for them. For starters, we introduced them to our Hot Box Connection solution. This assured equipment availability and vessel space allocation for their raw material imports into Ethiopia – thereby eliminating their cargo-rolling challenge once and for all.
To get their goods back on the road, we assisted them with 70 dedicated trucks which handled Jay Jay’s entire inland transport requirement with ease, without disruption. Being their single point of contact for coordinating everything behind the scenes, we eliminated the risks of delays that previously occurred when they worked with multiple providers.
Result
With Maersk covering the smaller gaps and stitching in simplified logistics solutions into their supply chain, Jay Jay Textiles was able to focus on the bigger picture of expanding their operations. Their 2021 half-year volumes are at 69% of 2020, indicating that their growth curve will continue till the end of this year.
A single logistics provider for inland requirements and customs clearance cut down both operational costs and time for Jay Jay Textiles. The switch from multiple handovers was essential to minimise delays and optimise their supply chain.
Charting a more connected future
With an intent to help European and North American buyers with their purchase orders from Jay Jay Textiles, the Ethiopia team is making consolidation facilities operational in the region.
This will help them spearhead a simplified end-to-end supply chain solution for apparel manufacturers in Ethiopia
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