How Maersk simplified a complex supply chain through an end-to-end solution.
The customer
Started in 2002, Braskem is the largest petrochemical company in Latin America. The Brazilian-based company plays a significant role in production chains essential to economic development, focusing on sustainable solutions that improve people’s lives in areas such as housing, food and transportation. The push was made possible with their comprehensive solutions such as plastic resins and chemical products for these diverse industries.
The company operates 40 industrial units in Brazil, the United States (US), Mexico and Germany and have their clients in over 70 countries.
The challenge
In 2011, Braskem opened its Singapore office to better support clients in the country and China, India, Indonesia, Korea and Japan. The company has since been growing its market share in distributing basic chemicals and petrochemicals in the region. However, orders were fulfilled directly from Brazil to their final destinations in Asia. It would take at least a month for shipments from the port of Aratu in Brazil to reach the port of Shanghai, China.
As their customer base grew, they understood that shorter lead times and outsourcing logistics management were necessary to improve their clients' productivity and increase sales. Braskem began to scout for a reliable and experienced logistics provider who could help them manage their shipment and logistics in Asia.
“Shipment and delivery to customers is not our core business,” shared Roger Marchioni, Director at Braskem Asia. “It was key to find a dependable logistics partner who could provide agility and adaptability in this volatile market.”
The Maersk solution
Braskem approached Maersk at the end of 2019, and we proposed a hub management solution to be set up in Singapore. The hub-in-transit (HIT) solution fit Braskem perfectly. The petrochemicals company had many clients in the region who required shorter lead times, and Singapore's proximity made that possible. The solution also helped Braskem save on costs. The HIT facility stores inventory for short cycles, eliminates expenses like import and export fees, and trucking and handles charges for moving pallets in and out of storage.
Braskem awarded Maersk a two-year deal in the second half of 2020, and operations went live in the last quarter of the year. We were able to bring our reliability and experience as a global integrator to the table. More importantly, we offered an extensive network that came with neutrality - a crucial element when sourcing for a dependable partner.
Under the partnership with Maersk, Braskem's first container arrived in Singapore in February 2021. Maersk will manage the end-to-end supply chain for Braskem, including complete visibility of its shipments, Maersk customs services and carrier bookings. Furthermore, Maersk will be working with other partners in Braskem's supply chain across multiple modes as their 4PL partner.
Considering the complexity in our supply chain, it’s important to have a reliable service provider who could adapt to this complexity and bring agile and innovative solutions to us. That is why we have chosen Maersk for this.
The result
As a direct result of the Maersk solution, Braskem saw several immediate successes in their logistics procedure. These included:- Shipments from Singapore to China now takes just five days, eliminating the lengthy journey from Brazil.
- Maersk handles all documentation, giving Braskem more time to focus on their customers and expanding their market share.
- The HIT service made it easier to store and service Braskem's clients in Asia after they close a deal and move cargo directly to final consumers.
- Overall, shipment speeds are now 80% faster, with complete visibility all the way.
Getting closer to customers in Asia was a critical step to support them. Our collaboration with Maersk finally made this possible.
Take the next step with Maersk
Integrated logistics has some of the most untapped potential in business today. To know how our logistics solutions can seamlessly fit your requirements, please contact your Maersk sales representative.
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