- MSC has digitized its marine supply ordering, moving away from traditional analog systems.
- The digital platform integrates procurement and supply across multiple categories.
- Collaboration with Source2Sea has resulted in streamlined and more efficient procurement processes.
- Errors and inefficiencies in procurement and delivery have been reduced significantly.
- The platform ensures better transparency, quality control, and sustainability, meeting MSC’s ESG demands.
MSC’s digital transformation began with discussions with Source2Sea, aiming to enhance procurement efficiency both ashore and at sea. Luigi Staccoli, MSC’s Chief Procurement Officer, stressed the need for a common framework with suppliers to ensure that specific, readily available products could be ordered without ambiguity. This new approach offers a seamless ordering experience similar to consumer-level online shopping, eliminating the confusion of generic items and ensuring precise deliveries.
Improved Efficiency and Reduced Errors
The digital shift has notably decreased procurement errors. MSC now experiences fewer issues like incorrect deliveries, product returns, and emergency supply needs. Vessels receive exactly what was ordered in the correct quantity, quality, and at the agreed price. This advancement has allowed MSC’s procurement and fleet management teams to focus on their core tasks, freeing up time and resources that were once spent on inefficient analog systems.
Addressing the Challenges of Analog Systems
Previously, procurement for provisions, stores, and consumables was a time-consuming process, with shipping companies investing considerable resources in managing RFQs and orders. This lack of real-time product availability and transparency often led to delayed deliveries and increased costs. Despite being a smaller portion of overall operational expenditure, the timely delivery of provisions is critical to seafarers’ wellbeing and safety.
Enhancing Supply Chain Efficiency
Mikael Weis, CEO of Source2Sea, noted that broadband satellite connectivity has accelerated the adoption of digital tools in the marine industry. The Source2Sea platform integrates seamlessly with Fleet Management Systems and suppliers’ ERP systems, allowing for a more efficient, cost-effective, and transparent supply chain. This shift has eliminated the need for RFQs and minimized communication errors, leading to more accurate deliveries and stronger customer satisfaction.
Commitment to Sustainability and Efficiency
MSC’s digital platform also ensures that its suppliers meet Environmental, Social, and Governance (ESG) criteria, enabling better waste management onboard and mitigating food waste. The platform allows for more effective cost control while enhancing fleet and catering management processes. By adopting a “what you click is what you get” approach, MSC is setting a benchmark for digital supply chain transformation in the marine industry.
Through these advancements, MSC is not only improving operational efficiency but also paving the way for more transparent, efficient, and sustainable procurement practices in the marine supply industry.
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Source: Source2Sea
