How Maersk’s supplier compliance program helped a global lifestyle brand standardise their processes to monitor, evaluate and assess their suppliers.
The customer
Our customer is one of the world's largest apparel companies. The company designs and markets jeans, casual wear and related accessories for men, women and children. They sell their products in over 110 countries with a global footprint of more than 3,000 retail stores and shop-in-shops.
The challenge
In an increasingly competitive lifestyle and fashion market, the customer continued to face concerns in its sourcing process. With multiple moving parts involved in sourcing from several international vendors, the lifestyle company was facing several challenges, including
- The lack of an effective management process to keep track of their suppliers’ performances
- Distance, language barriers and culture differences causing issues for the customer’s supply chain
- Multiple touchpoints in their sourcing process that gave rise to sub-optimal consolidation, creating additional costs
The company was looking to tie-up with an experienced and well-connected partner to help keep suppliers’ activities under control and aid in global expansion ambitions.
The Maersk solution
Maersk’s Supply Chain Management (SCM) experts were roped in to find a solution. Using its global reach and local expertise, the team set about providing visibility, designing, implementing and administering a vendor compliance program.
The key areas the solution focused on were
- Implementing a supplier compliance program to manage vendors and their invoices on the customer’s behalf at the places of origin.
- Mitigate the supply chain risks caused by supplier non-compliance from the get-go.
- Continuously trace and drive supplier performance to meet target levels.
The result
As a direct result of the Maersk SCM services, the customer’s supplier performance improved significantly after just one year of having the program in place. The new process also showed multiple benefits to the customer, such as
- Exceeding the 90% target set for on-time documentation, booking and delivery
- Reducing variability across the supply chain
- Reduced expedited freight costs paid by the customer or suppliers
- Improving origin dwell time and promoting on-time departure
- Improving product availability performance
- Driving positive vendor behaviour in the long run
Flexibility to shape your lifestyle supply chain
Maersk’s integrated approach to ocean and logistics services provides us with a unique advantage - the ability to tailor logistics solutions according to your business requirements. It includes our expertise to handle your entire supply chain end-to-end, along with every disruption if needed.
To know how to get the most out of your business with our supply chain solutions, contact us.
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