How we met a global electronics leader’s air freight needs on the first go, connecting the customer across 5 locations.
Trade has evolved over the last 18 months. Demand for certain goods have dropped, while other commodities like essentials and health products have seen a spike in consumption. Meanwhile, consumers, pressed with the need to shop faster and smarter, have demanded businesses bring places of origins and end destinations closer.
However, market uncertainties have still been weighing on value chains heavily reliant on ocean transport. That’s where an integrated logistics partner offering alternative solutions like air freight, comes into play.
Recently, a major global electronics company partnered with Maersk to move products from Asia to markets in the West using air freight. They needed a fast solution that met their performance indicators and fit seamlessly into their supply chain. Here’s the story about how our teams made it possible.
The customer
As a multinational electronics company, our customer manufactures a wide range of consumer electronics and home appliances, with sales networks in over 70 countries. Based in South Korea, the company is also a global leader in future technology, consistently setting benchmarks in the research and development of smartphones and personal computers.
The challenge
The customer had an established internal logistics process catered to servicing their production facilities and end markets. As a result, the Maersk Air Freight team had to work their way around several challenges, including:
Meeting local guidelines
The company had several factories at a production branch. Each factory was governed locally by its own performance indicators and operating procedures.
Fitting internal parameters
There was already an internal logistics system in place. Maersk did not only have to periodically update the system, but also meet the customer’s performance targets.
A dual-approval process
An internal team at the company’s headquarters oversaw all air freight operations. Maersk needed to coordinate with the customer’s local teams as well as internal stakeholders.
Providing cost-efficient plans
The customer was looking for a competitive pricing model. Since Covid-19 had driven up air freight rates, they had closed negotiations with small volume carriers.
The solution
The Maersk Air Freight team had to align the entire process to be tailored to the customer’s goals and needs. This is where Maersk’s integrated approach proved to be the trump card.
A thorough testing process
The Maersk team conducted 20 test shipments using air freight. Since April 2021 and over the next few months, we were able to maintain 100% of the customer’s key performance indicators (KPIs) – a testimony to Maersk Air Freight’s quality and the team’s capabilities.
Building a dedicated service team
The Maersk team across Asia-Pacific aligned to move key personnel to locations closer to the customer’s regional facilities. We also set up an open channel for direct communications with the customer’s global headquarters.
Pitching the benefits of integrated logistics
Leaders within the Maersk team were able to highlight the efficiency that an integrated logistics system could offer. The synergies created by air freight were enough to get the customer’s attention.
Offering flexible, competitive prices
The Maersk global charter team’s long-standing relations with core carriers helped provide the customer with timely quotations with flexible validities – in line with the targets set at the start of the project.
The result
Within the first few weeks of implementing the air freight solution, the Maersk team was able to meet and exceed the customer’s key performance indicators (KPIs). Our key successes to date include:
- Becoming the customer’s official air carrier for 5 different locations across Asia: Shanghai, Hanoi, Istanbul, India and Hong Kong
- Operating flights for 5 different types of the customer’s air freight operations
Collective efforts with various stakeholders have enabled us to seize the first air charter opportunity with one of the biggest companies in South Korea. This win proves that our tailor-made charter solutions are meeting customer expectations of Maersk being a true global integrator of container logistics and our push beyond ocean services.
Start your air freight journey with Maersk today, and find out how you can increase productivity, cut transit times and drive greater customer satisfaction.
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