Egypt is a growing sourcing and procurement market for textiles. Egyptian cotton, garments like trousers, and carpets are sought after by some of the biggest Fashion and Lifestyle brands. In addition to its high-quality textile and clothing products, what makes Egypt such an attractive sourcing destination is its strategic location – close to both Europe and North America.
More than 10% of world trade passes through the Suez Canal, making Egypt an important Transhipment Hub for supply chains around the world. As a result, demand for logistics and warehousing capabilities in the country has witnessed steady growth over the past few years. Since 2017, the Egyptian Government has also been promoting exports with a special focus on investments in infrastructure, attracting Foreign Direct Investments (FDI), and the expansion of the Suez Canal.
Logistics: Not as smooth as Egyptian cotton
Fashion and Lifestyle companies are always in a race against time. Their goods need to be in stores on time, every time. For that reason, they require the correct quantity of goods to be loaded at source, in good condition, with accurate labelling and documentation. What’s more, businesses selling products with low margins must optimise logistics costs.
Errors result in delays and unforeseen supply chain costs. For instance, if a fast-selling product misses a vessel, businesses may have to fly the product to the destination rather than use an ocean solution.
Goods can get damaged in transit if the rules and regulations of loading are not strictly followed. Further, if an incorrect number of cartons is loaded on the vessel, or the customs documentation is inaccurate, the movement of goods gets interrupted at the destination.
Adding value to Fashion and Lifestyle supply chains
For some years now, Maersk has been simplifying and integrating logistics for customers in Egypt with Supply Chain Management (SCM) services. Growing exports, however, have highlighted a growing need for services such as vendor and purchase order (PO) management and consolidation to ensure smooth processes from manufacturing in Egypt to the final destination. To address the challenges customers are facing, Maersk has invested in a state-of-the-art warehouse facility in the region, covering an area of 5,550 sq. m.
Cost benefits of reliability and consolidation
Fashion and Lifestyle supply chains need to run like well-oiled machines. They cannot afford the cost of uncertainty that comes along with damages, discrepancies and delays. Our customers in Egypt rely on us to address all their challenges. They use our warehouse not just to keep supply chain inefficiencies in check, but also to enable savings through better container utilisation.
Consolidation at the Maersk warehouse reduces the total number of containers used and optimises the utilisation of 40-foot containers.
This can result in substantial savings as the cost per container or customs clearance and trucking is not that different for 20- and 40-foot containers. Additionally, multiple shippers can share one container, paying only for the space they occupy.
That’s not all.
Integrating our SCM services, including our warehouse in Ismailia, with other Maersk solutions such as Ocean, Trucking, Rail, and Customs Services can take operational efficiencies to a whole new level.
We visited the Platform at the end of October, and I have been impressed by the high standard in terms of construction and strategic location. Safety and security rules were respected during our visit, which confirmed our choice of Maersk for our warehouse. We have started shipping from this warehouse facility and are applying the processes agreed upon, which will undoubtedly increase the efficiency and attractiveness of the services we provide to our clients.
- 3,900 sq. m storage space
- 7 dock doors
- C-TPAT compliant
- Full security camera coverage
- Security guards
Value added services
- Quality control and inspection
- Ticketing / Labeling
- Carton bar code labeling
- Barcode scanning
- Repair of pallets and packaging