As your trusted supply chain partner, Maersk is now taking another significant step to provide our customers with integrated logistics as we announce our intent to acquire LF Logistics, shifting the balance of our customer offering significantly towards global logistics and integrated end-to-end services and solutions.
LF Logistics, a Hong Kong-based omnichannel fulfilment company, will allow us to offer truly global door-to-door supply chain solutions to our customers, supported by their premium warehouse fulfilment services, omnichannel footprint and ecommerce and inland transport competences. Combined with our existing capabilities in origin consolidation, deconsolidation and distribution, after the completion of this acquisition, Maersk will be able to provide your business with a more holistic service across your logistics. With a vital, new omnichannel fulfilment product, the opportunities are almost endless with a fully integrated global supply chain.
Maersk’s origin consolidation, purchase order management and ocean services have long been highly acknowledged. The addition of LF Logistics’ excellent destination omnichannel fulfilment capabilities will help to close the loop, enabling fully integrated supply chains for our customers. There will be one homogeneous fulfilment mechanism across all geographies, with less contact points, more visibility, and more data, truly supporting our customers grow their business.
LF Logistics will significantly change our portfolio of business. They employ 10.000 people and in addition to those competencies, they bring with them an extensive warehousing network covering the Asia-Pacific markets and an attractive operational and technology platform with a proven capability to scale across multiple locations.
There are many systems in the market, but LF Logistics’ is one of the best-in-class. Having developed it themselves based on customer needs and feedback; their entire operation runs on this single, standardised ecosystem. Not only will implementing this system alongside our existing systems ease the data transfers between Maersk and your business, the standardised deployment methodology and technology will also allow us to implement a new warehouse in only three months, significantly reducing the time it takes today. Combined with our very ambitious growth strategy for our future warehouse footprint, where our ambitions are to expand to more than 800 warehouses by 2026, this will allow for new facilities every week, if needed - exactly where they benefit customers the most.
We recognize that for LF Logistics to be a global leader in the industry, achieving scale is of paramount importance. Maersk provides the ideal fit. Together we will deliver a compelling value proposition that will allow our people to attain their full potential and our customers to achieve sustainable growth.
In the past year, the need for supply chain resilience has never been more prominent. However, the key is that the resilience is scalable and agile – to be switched on and off as needed, not only from a supplier perspective, but on a company level. Our future offering that we will be able to present to you after completing this acquisition, will allow you to build end-to-end visibility with ease, seamlessly connecting supply with demand down to SKU level. Having all this flow in synergy will allow you to react quicker if disruptions happen and at the same time allow us to prioritise your most urgent cargo first. Seamless API access will support these efforts.
We look forward to sharing more details on our expanded capabilities and the added value to your logistics in due course. The transaction is expected to close in 2022, subject regulatory approvals, and until then, LF Logistics and Maersk will remain two separate, independent companies running their businesses in the ordinary course. Please visit our web advisory on Maersk.com, where you will find a more detailed Q&A prepared by our teams. Should you have any questions on how we can help you and your business please contact your local Maersk professional.