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NATPET Boosts Supply Chain with Maersk

Strategic partnership reduces lead times by nearly 50%

by Huda Marshad
October 9, 2024
in Supply chain
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National Petrochemical Industrial Co. (NATPET), a prominent Saudi polypropylene resin producer, has notably enhanced its supply chain efficiency through a strategic alliance with A.P. Moller – Maersk. This partnership has significantly reduced lead times, boosting NATPET’s competitiveness in the global market.

The collaboration has cut lead times by approximately 44%, from 15-18 days to under 10 days. This improvement is achieved through optimized storage and inventory management, ensuring continuous production and substantial cost savings. Additionally, NATPET gains improved shipment visibility and control, aiding in informed decision-making and better supply chain management.

NATPET, operating in over 60 countries and producing 400,000 metric tons of polypropylene annually, faced logistical challenges in moving products efficiently. Maersk’s Integrated Logistics Hub at King Abdullah Port has provided a solution, addressing these issues effectively.

“Our partnership with Maersk has revolutionized our supply chain operations,” stated Hisham Jamal, NATPET’s Director of Marketing & Sales. “The nearly 50% reduction in lead times has enhanced our production flow and strengthened our market standing by enabling quicker deliveries to our global customers.”

Maersk’s solution includes strategic warehousing, advanced inventory monitoring, and seamless transportation coordination, minimizing delays and reducing lead times. This comprehensive approach has resulted in competitive pricing and significant cost savings for NATPET.

“We are proud to assist NATPET in optimizing their petrochemical supply chain,” said Mohammad Shihab, Managing Director, Maersk Saudi Arabia. “Our logistics solutions and real-time visibility tools have allowed NATPET to exceed industry standards.”

This successful partnership highlights the importance of integrated logistics solutions in the petrochemical sector. As NATPET continues to utilize Maersk’s global network, both companies aim to explore new opportunities and set new benchmarks in supply chain efficiency.

About A.P. Moller – Maersk

A.P. Moller – Maersk is a leader in global logistics, connecting and simplifying supply chains across more than 130 countries. With a workforce exceeding 100,000, Maersk aims for net zero emissions by 2040 through innovative technologies, new vessels, and green fuels.

Tags: lead time reductionlogistics efficiencyMaerskNATPETpetrochemical supply
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