Enabling a flexible multi-mode solution that generated 61% in cost savings for a leading Indonesian steel maker.
The customer
Our customer is an Indonesian company producing international quality steel. Founded in 2004, the company strives to maintain high quality in their steel products at competitive prices. Their head office is located in Jakarta, and the company owns manufacturing facilities at Medan and Cilegon.
The customer was looking for a logistic partner who could support them at the most competitive cost, was always available to resolve supply chain queries and ensured efficiency in transporting their products. A lead logistics partner could also take a large chunk of the supply chain management responsibilities off their plate, enabling them to focus on their core steel-making operations.
The challenge
As part of their business, the customer had to ship an ISO (International Standards Organization) tank from Medan to Cilegon. The tank, measuring 8 feet by 20 feet, held Shell Catenex, a paraffinic process oil used as extender or carrier fluid. With nearly 1,800 kilometres of road and the Java Sea separating Medan from Cilegon, our customer faced several challenges in planning the journey.
Some of the hurdles included:
- Delicate nature of goods: Although a non-dangerous commodity, Catenex oil was sensitive and required careful handling to ensure there was no leakage.
- Inflated costs and distance: Completing the entire journey on trucks alone was expensive. Cilegon was 5-7 days away and it was difficult to find truck drivers for the long route.
- Multiple modes of transport: Along with trucking, the journey also included local barges with fluctuating schedules and irregular timings.
- Shortage of logistics personnel: The company had a limited team and required a partner to oversee their logistic process, end to end.
The customer also required additional services, including:
- Loading and unloading the ISO tanks onto the trucks and barges
- Overseeing loading of the oil from the factory to the ISO tank
- Supplying generators to pump the oil into the ISO tank
The solution
The unique nature of the shipment and the journey called for a highly customised and flexible solution. The Maersk team proposed an integrated service using trucks and local barge, along with additional offerings that fit the customer’s exact requirements.
The ISO tank was loaded at the customer’s Medan facility and trucked to Belawan port. A barge then shipped the cargo to the Tanjung Priok Port, where our teams were ready to reload it on a separate truck bound for the customer’s factory at Cilegon.
Here’s a detailed overview of the solution:
- A seamless connection: The combination of trucks and barge provided a smooth movement of the tank across land and sea. Our teams also ensured the customer had visibility at each stage.
- On-site services: Our teams provided the ISO tank for the Catenex oil and helped load and unload the tank at the pick-up and delivery sites. This step cut the need for an additional vendor and reduced expenses.
- A local, well-trained team: We ensured the driver for the journey was well-versed in the local terrain and routes. The team was also trained to follow all the necessary safety procedures related to the oil and the ISO tank.
- Flexibility and agility: The barge scheduled to move the cargo across the Java Sea arrived a day early. Despite the constraint, our teams successfully loaded the tank on time to meet the schedule.
- One point of contact: Maersk’s integrated services ensured the customer’s teams had a single point of contact and control throughout the journey.
The result
Our strategy ensured we met every requirement requested by the customer and successfully moved the tank with minimal bottlenecks. As a direct result of the truck and barge combination, we reduced costs for the customer by 61% from their total expected expenses if they had solely used trucks to move the cargo. A member of our customer’s team had this to say about the overall shipment process.
Maersk’s services and direct communication separate it from other service providers. Their logistics teams are always ready for any challenge that lies ahead.
If you’d like to learn more about our integrated logistics solutions, get in touch with your Maersk sales representative, or reach out to us directly at APACmarketing@maersk.com .
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