Streamlined supply chains help NATPET improve production continuity and cost savings
National Petrochemical Industrial Co. (NATPET), a leading Saudi Arabian polypropylene resin producer, has significantly improved its supply chain efficiency through a strategic partnership with A.P. 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% from 15-18 days to less than 10 days.
Significant improvement
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.
Transformation
“Our partnership with Maersk has transformed our post-production supply chain operations,” stressed NATPET’s Hisham Jamal, Director of Marketing & Sales. He added, “The nearly 50% 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,” he added.
“Our integrated logistics solutions and real-time visibility tools have enabled NATPET to surpass industry standards while making informed decisions about cargo movement,” remarked Mohammad Shihab, Managing Director, Maersk Saudi Arabia.
