The customer is a global lifestyle apparel company, with a portfolio of some of the world's most iconic denim brands. The company has been designing, manufacturing, sourcing and distributing high-quality products for more than a century.
In early 2020, they selected Maersk as their sole Supply Chain Management (SCM) provider for all inbound finished goods flows from production to distribution, across their global markets. However, during the first quarter of the year, the company faced an unexpected setback. They had to suspend finished goods production at their facilities in Bangladesh, Egypt and Kenya because most of their raw material fabric is sourced from China.
The challenge
Due to interrupted finished goods production, the customer's ability to accurately predict their order fulfillment schedules were impacted. As a result, their sales suffered greatly. They needed a concrete solution to manage their upstream raw material supply chain.
The solution
Maersk worked in tandem with its network of partner brands to deliver a truly integrated solution Maersk’s Lifestyle team in Greater China sprang into action straight away. They presented the customer with an integrated solution that not only delivered better visibility and control of the raw material flows but also enabled cost savings through consolidation.
Since Maersk is already the Supply Chain Management (SCM) provider for their finished goods, the teams adapted existing processes to accommodate raw material flows. To execute the new system as planned, Maersk worked in tandem with its network of partner brands to deliver a truly integrated solution.
- At origin, Maersk handles consolidation and order management, and issues multiple Bill of Lading for each consignee at the destination
- Full containers are carried by either Sealand - A Maersk Company or Maersk vessels
- At the destination, Maersk handles deconsolidation and Customs House Brokerage, wherever needed
Authority comment
“Maersk team worked closely with the customer to understand their challenges. After that our internal teams collaborated harmoniously to present the most meaningful possible solution. Since the problem was multi-functional, our approach was too, where at least 7 different Maersk teams - program management, product, sales, and more - worked together to coin an effective solution for our customer,” said James Savagar, Head of Retail and Lifestyle, Greater China, A.P. Moller – Maersk.
The result
Maersk's quick response during COVID-19 has strengthened the partnership further The finished solution was a truly integrated service that was made possible through united efforts from all fronts. The customer was finally able to revive their production operations and fulfill promises to their customers.
During challenging environments such as the recent COVID-19 pandemic, Maersk remained customer-focused, providing value through insights, data, analysis and the hands-on approach of its global teams.
Even though Maersk was already associated with the customer for the Supply Chain solution, quick response during COVID-19 has strengthened the partnership further. The customer has awarded a new contract to Maersk to handle all their raw material flows, covering additional annual volume, which is expected to grow in the coming years.