The client is Taiwan’s largest producer of rice crackers and flavoured drinks, that aims to become one of the top brands in this category in Vietnam as well, by 2024. Since the client saw great success on expansion into Greater China, they had set up their factory there. The company also plans to build a factory in Vietnam as well in the future, to accelerate their growth in the South East Asian market. But presently, their products are manufactured at their factory in China, and then imported into South East Asia.
To import their cargo from China into Vietnam, the client had ten multiple vendors for their logistics business:
- Two warehouse vendors
- Two import trucking & CHB vendors at North Vietnam
- Two import trucking & CHB vendors at South Vietnam
- Two distribution vendors at North Vietnam
- and two distribution vendors at South Vietnam
Essentially, they had to coordinate with these warehouse, CHB & trucking suppliers to get updates related to estimated times of arrival, departure, completion of customs procedures, delivery of trucking, etc.
However, the client’s supply chain department in Vietnam only has 3 staff. Besides managing daily logistics business, the staff also place orders with the client’s factories (manufacturing unit) in China. Since the client’s supply chain department outsources everything to their vendors, they were quite overloaded with the amount of coordination required to simply get updates on their cargo (such as ETD/ETA/Arrival Notice/Completion of CHB/Delivery of trucking, etc.).
As a result, planning based on these updates was difficult. The client’s supply chain department was looking to reduce the number of vendors they engage with.
The Sealand Solution
When we at Sealand - A Maersk Company heard of this, we suggested that we enable the client with better forecasts, and a plan to manage their supply chain.
The plan was to offer the client warehouses in both North Vietnam & South Vietnam.
The client saw a lot of promise in the partnership on warehousing. In the words of the client’s Supply Chain Department Manager, “after cooperating with Sealand for warehousing in both North Vietnam & South Vietnam, we’re quite impressed by the professional solution and dedicated service.”
As a result, the client also partnered with us for L&S capabilities such as import CHB and inland trucking as well, to help them get better forecasts over the entire supply chain. This way, they would be guaranteed efficient planning in
the logistics part of their supply chain.
Since moving to Sealand’s warehouse in North Vietnam, the client’s monthly expenditure has reduced by 17%.
This reduction in expenditure has also covered the total migration cost of their cargo, from their previous provider’s warehouse to ours, within 3 months of operation.
Thanks to Sealand’s expertise on ocean, the client’s ocean supply chain efficiency has improved, simply by pro-actively forecasting on their import shipments’ ETA & inland delivery.
This is the main reason the client chose to partner with us, and we could coordinate their import CHB & delivery.
We knew that Maersk was the biggest shipping line in the world, but we didn’t know that Sealand could provide other logistics service as well. We do believe your team will provide us a high-quality integrated logistics service and will contribute to our business’ growth in Vietnam!