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Successful shift in business model through efficient e-commerce fulfilment.
The Background
Our customer is a leading U.S. based global manufacturer of office products and marketing office business supplies. They have subsidiaries in more than 20 countries and sales in over 120 countries.
Their latest plan was to start selling products directly to consumers by adapting their existing B2B supply chain in China to a B2C model.
The Challenge
The change in their existing model required a much broader shift in mindset as well as capabilities that lacked within their current staff.
The need of the hour was a partner experienced in omni-channel fulfilment and developing solutions for businesses similar to theirs. This required major structural changes to successfully incorporate a B2C model in their capabilities.
The Solution
The first step in achieving this was to identify an efficient business model that did justice to both B2B and B2C in China. After extended strategic discussions and analyses, the decision was to focus on one warehouse in Shanghai, operated by Maersk. This would bring speed by allowing them to get their products to market faster across different sales channels. This would also improve their margins by eliminating the need for a middleman.
Our international credibility and local market knowledge differentiated us from others since we could provide the manufacturer with solutions tailored for both their existing and potential customers.
The Result
The customer saw promise in our solution and outsourced their warehousing operations to Maersk by dissolving their self-operated warehouse. Today, they have an e-tailer as an additional sales channel fulfilled by the Maersk Shanghai Warehouse.
For their next phase of expansion plans into other countries, the customer has started discussions with Maersk. The strategic insights we provided to expand their business made it possible for them to view us as a one-stop logistics partner.
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