Helping to power BYD’s long-term success through an integrated and sustainable supply chain.
The customer
BYD is a leading technology company based in China, dedicated to creating better lives for people through technological innovation. Since being founded in 1995, the company has established over 30 industrial parks all around the world, playing a major role in industries related to electronics, automotive, new energy, and rail transit. BYD has built a global commercial network that extends far beyond China. They have established entities in Europe, North America and South America, spanning a wide range of business units and divisions.
Across all these different verticals, BYD is completely dedicated to providing zero-emission solutions to their customers. Through this strong focus on sustainable energy and end-to-end innovation, the company has established itself as one of the global market leaders for EV batteries, energy storage systems, solar photovoltaic batteries, and much more.
The Challenge
When managing a network of that size, there will naturally be various logistical challenges to contend with. Every regional BYD business unit has specific requests and requirements, and this has created certain complications when it comes to decision making, as well as implementation when it comes to service suppliers.
The products that the company manufactures also present additional shipping requirements. Cargo that contains batteries, such as e-vehicles, energy storage systems, and even EV batteries themselves, require specialised handling, and a certain level of expertise when being transported. Furthermore, suppliers need to be closely involved with the project planning and the designing of customised logistics solutions.
The Solution
When we started working on a solution for BYD, the priority was to simplify their working flow to help connect them more smoothly to the global market. Our team identified a long-term contract package, that would provide a more holistic approach to streamlining their supply chain network.
The package included global shipping, landside logistics, as well as a supply chain management service customised to suit their needs. The service footprint begins from BYD’s production plants in Asia, and extends to all their destination markets in Europe, North America and Latin America. Our SCM team essentially provided BYD with a one-stop-shop plan that would allow them to easily plan and manage their entire global supply chain.
Meanwhile, we also provided special shipping capabilities and end-to-end logistics services to better manage their out of gauge (OOG) cargo, and support their long-term ESS growth target in the UK and US markets. Finally, in line with their vision for renewable energy, we are also implementing Maersk Eco Delivery across BYD’s logistics network, which will help mitigate their emissions, and greatly reduce their overall carbon footprint.
The result
One of the biggest gains for BYD since the start of the agreement has been in efficiency. By having to spend less time sourcing logistics solutions, they have been able to focus more on R&D and new projects, allowing Maersk to take over the streamlining and strengthening of their supply chain. With our Eco Delivery service, they are also expected to save around 80% CO2 in shipping to Europe.
We are excited that BYD has chosen Maersk as their logistics partner for integrated supply chain solutions worldwide. With the Maersk team’s extensive experience, we can enhance the resilience and reduce the complexity of BYD’s supply chain. We’re also very glad to provide ECO delivery for BYD, through which we can play an active role in helping our customer to achieve its decarbonization target.
Global logistics are undergoing a major mindset change. More and more businesses are working hard to decarbonise their supply chains and mitigate their impact on the environment. This aligns perfectly with Maersk’s vision of net zero emissions by the year 2040, and we believe we have a significant role and responsibility in helping companies achieve this great transformation with ease.
If you’d like more information on how to sustainably build resilience and efficiency in your supply chain, please feel free to contact your Maersk sales representative or reach out to us directly.
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