A story of how an Early Life Nutrition brand overcame initial challenges and established a strong foothold in the new market
The Background
Entering a new venture isn’t simple for any brand. The sheer volume of legal formalities and documentation take months before a business can commence its operations. Our customer, a Danish dairy product manufacturer, had been operating in the Indonesian market through a network of distributors. In 2018, they decided to develop their footprints through a joint venture with an Indonesian conglomerate, officially joining the groups of companies in Early Life Nutrition (ELN) sector.
The Challenge
Before commencing operations the customer had several challenges to overcome.
- In order to conduct speedy custom clearance, some cash-related transactions are required with the customs offices (e.g. import duty payments). As a new company, it could take some time for the customer to arrange them.
- They had a small human resource pool in the initial days.
- The customer experienced inventory overflow at their existing storage facility due to many unexpected situations (economic slowdown, pandemic, etc.). They needed a solution that provided enough space and suitable storage conditions for their organic early-life nutrition products.
Considering these aspects, the customer needed an efficient partner. One who had the necessary supply chain expertise to hit the ground running.
The Maersk solution
As a first step, we set up a dedicated customer service to address the needs arising out of the new joint venture. According to their special status, we took care of all the outlay charges (without exception) to make their financial handling easier. Such advance payments helped in smoothening the clearance process, which otherwise takes several months.
Additionally, since the customer’s older storage facility had space shortage, our Cikarang warehouse fit their needs perfectly. It had a thousand pallets reserved for product storage and a robust arrangement to improve their distribution reliability. Before the partnership, they were dependent on a network of distributors. Maersk’s Warehouse and Distribution services offered options with stability and reliability so that they could focus better on formulating their local business strategy.
All in all, Maersk’s passion for going all the way for its customers shone through every service and support provided across customs, intermodal transport, warehouse, and domestic distribution.
The Result
Maersk’s teams worked with the customer at every stage to pave a smooth road for future growth. In the process, significant milestones emerged as proof of meticulous planning and successful partnership.
- We moved them from red-lane clearance to green-lane in just 4 months. The industry average is between 6 to 12 months.
- Coverage of outlay charges helped in faster customs clearances and substantial savings in demurrage, accounting for about 60% of potential unwanted costs.
- With the help of our Warehousing & Distribution setup, their product storage and distribution became organised and timely.
With a host of end-to-end supply chain solutions at their service, the customer is now focusing better on strategic decisions because they know that their intra-Indonesia supply chain is in the right hands.
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