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NATPET achieves a 50 per cent reduction in lead times with Maersk's integrated logistics solutions

Streamlined supply chains help NATPET improve production continuity and cost savings and enhance shipment visibility and control

Published: Fri 27 Sep 2024, 12:13 PM

Updated: Fri 27 Sep 2024, 12:17 PM

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National Petrochemical Industrial Co. (NATPET), a leading Saudi Arabian polypropylene resin producer, has significantly improved its supply chain efficiency through a strategic partnership with AP Moller - Maersk (Maersk). The collaboration has resulted in a remarkable reduction in lead times and enhanced operational efficiency, positioning NATPET for stronger competitiveness in the global market.

The partnership between NATPET and Maersk has yielded impressive results, with the most notable achievement being the reduction of lead time by around 44 per cent from 15-18 days to less than 10 days. This significant improvement is underpinned by streamlined storage and inventory management processes, which have enhanced production continuity and resulted in substantial cost savings. Moreover, the collaboration has provided NATPET with enhanced visibility and control over shipments, allowing for more informed decision-making and improved overall supply chain management.

NATPET, which operates in over 60 countries and produces 400,000 metric tons of polypropylene annually, faced challenges in efficiently moving products from its manufacturing unit to storage facilities and then to ports for loading onto vessels. Maersk's tailored solution addressed these pain points through its Integrated Logistics Hub at King Abdullah Port.

"Our partnership with Maersk has transformed our post-production supply chain operations," said NATPET’s Hisham Jamal, director of marketing and sales. He added: "The nearly 50 per cent reduction in lead times has not only improved our production flow but also strengthened our market position by enabling faster deliveries to our global customers."

Maersk's comprehensive solution encompasses a range of integrated services designed to optimise NATPET's supply chain. At the core of this solution is strategic warehousing utilising Maersk's state-of-the-art facility, which is complemented by technology for monitoring and managing inventory levels. The seamless coordination of land and sea transportation ensures the smooth movement of goods throughout the supply chain, while expedited customs processing minimises delays. Furthermore, proximity to port, and thus vessels, contributes to the overall reduction in lead times.

This integrated approach has yielded multiple benefits for NATPET, including shorter lead time, competitive pricing and significant cost savings.

"We're proud to support NATPET in optimising their petrochemical supply chain," stated Mohammad Shihab, managing director, Maersk Saudi Arabia. "Our integrated logistics solutions and real-time visibility tools have enabled NATPET to surpass industry standards while making informed decisions about cargo movement."

The success of this partnership demonstrates the value of integrated logistics solutions in the petrochemical industry. As NATPET continues to leverage Maersk's global logistics network, both companies look forward to unlocking new opportunities and setting new benchmarks in supply chain efficiency.



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