INCREASED OPERATIONAL EFFICIENCEY
REDUCED LEAD TIMES
IMPROVED INVENTORY MANAGEMENT
Smoother Customs clearance by aggregating goods flows
Europris is the largest discount variety retailer in Norway, with annual revenue of approximately EUR 900 million. High inventory turnover is everything, and it is crucial to continuously work to reduce the risks of potential disruptions in the supply chain. This places a heavy burden on the flow of goods, requiring customs handling that is efficient and timely.
By selecting a logistics partner with both shipping and customs expertise, Europris were able to streamline their cross-border supply chain. Whilst Maersk manages their air and ocean shipments, KGH, a Maersk Company, automated Europris’ customs handling with direct customs clearance at the border and ongoing tariff classification of goods. The collaboration has resulted in better control, more efficient handling, and shorter lead times in the flow of goods.
Europris handles thousands of items in its diverse product line each year, with its two critical success factors being secure deliveries and high inventory turnover. Europris sought to reduce the number of supply chain partners they were working with to improve their visibility and efficiency. Operating with a broad range of goods provided by a vast network of suppliers in different countries, they required a partner that could facilitate their capacity size with the expertise to handle their complex customs declarations.
Another deciding factor in choosing Maersk was the company’s ability to provide both logistics and customs services, with the ability to offer direct customs clearance at the border being a prerequisite. The reason why specialist knowledge of customs was important, was the desire to develop improved customs processes and reduce their reliance on individual colleagues.
The KGH Solution
Based on the needs and requirements Europris had, an integrated solution was chosen where customs management was added to the existing logistics solution. Being a Maersk company, KGH together with Maersk created a digitally-based solution that ensures efficient, secure flows of goods. As soon as the information about future goods is in the system, the information is verified and prepared for further handling. All parties involved have direct access to all necessary information, which facilitates coordination and reduces the number of process steps. The digital platform ensures correct, efficient customs clearance and a smooth flow of goods so that the goods reach the stores in good time. This is especially important for Europris, as sales are extensively campaign driven. KGH clearing the goods directly at the border was a requirement from Europris to reduce any potential risks from goods being stored in a warehouse before they go through customs.
Another significant aspect concerns the classification of goods, to determine which commodity codes to use. KGH continuously assists with classification support to optimise customs duties and ensure compliance. Each new item is handled by KGH to establish the correct HS code, where reconciliations with the customs authority are critical before the commodity code is finally determined in consultation with Europris.
Improved control: Thanks to the increased degree of automation and the use of an integrated solution including both logistics and customs services, Europris now has a better overview and control of the goods flow. This strengthens the company’s ability to deliver while ensuring compliance.
Increased operational efficiency: The digital platform increases the opportunities to ensure efficient handling through better opportunities to monitor operations and identify any risks and bottlenecks that may affect the process negatively.
Reduced lead times: Greater overview, automated processes and direct customs clearance at the border also contribute to shorter lead times. This creates better conditions for the goods to reach the shelves as planned and contributes to better inventory turnover and lower capital tied up.
Improved inventory management: Direct customs clearance and a fast, efficient process to help Europris to reduce inventory costs while reducing capital tied up.