NATPET Cuts Lead Times by 50% with Maersk’s Integrated Logistics

Dubai/Jeddah – In a major leap towards operational efficiency, National Petrochemical Industrial Co. (NATPET), one of Saudi Arabia’s leading polypropylene resin producers, has successfully reduced its lead times by nearly 50% through a strategic partnership with A.P. Moller – Maersk (Maersk). This collaboration is setting new standards in the petrochemical sector, with significant improvements in supply chain management, production continuity, and cost savings.

The Impact of Integrated Logistics: A Game Changer for NATPET

Through Maersk’s innovative integrated logistics solutions, NATPET has cut its lead time from 15-18 days to under 10 days, a remarkable achievement that strengthens the company’s position in the global market. By enhancing storage and inventory management processes, the partnership has streamlined operations and provided NATPET with greater visibility and control over shipments, allowing for more efficient decision-making.

“We are excited about the dramatic reduction in lead times, which has not only improved our production flow but also boosted our ability to deliver faster to customers worldwide,” said Hisham Jamal, Director of Marketing & Sales at NATPET.

Strategic Logistics Hub: The Backbone of the Partnership

At the heart of this success is Maersk’s Integrated Logistics Hub at King Abdullah Port. The tailored solution addresses key pain points in NATPET’s supply chain—specifically, the challenges associated with moving products from production to storage facilities and ultimately to shipping ports. Maersk’s cutting-edge warehousing technology and real-time inventory management tools have played a crucial role in enhancing operational efficiency.

By ensuring smooth coordination between land and sea transportation and minimizing delays with expedited customs processing, the partnership has substantially shortened delivery times. Proximity to port facilities has also been a key factor in reducing lead times.

The Benefits: Cost Savings, Improved Market Competitiveness, and Operational Efficiency

The collaboration has delivered multiple benefits for NATPET, including:

• Lead-time reduction: Nearly 50% decrease in time from production to delivery.
• Cost savings: Streamlined processes and reduced inventory holding costs.
• Improved supply chain visibility: Real-time monitoring and enhanced decision-making.

This efficiency boost is vital as NATPET operates in over 60 countries and produces 400,000 metric tons of polypropylene annually. The ability to streamline the supply chain has positioned the company for greater competitiveness in a fast-paced global market.

Maersk’s Role: Enabling Informed Decision-Making

“We are proud to support NATPET in optimising their petrochemical supply chain,” said Mohammad Shihab, Managing Director of Maersk Saudi Arabia. “Our integrated logistics solutions and real-time visibility tools have helped NATPET not only meet but exceed industry standards.”

The success of this partnership highlights the transformative power of integrated logistics in the petrochemical industry. With Maersk’s global network and sophisticated technology, NATPET is well-equipped to set new benchmarks for supply chain excellence.

Looking Ahead: Unlocking New Opportunities for Growth

As NATPET continues to leverage Maersk’s robust logistics network, both companies are optimistic about the future. The partnership is poised to open new avenues for growth, with further enhancements expected in supply chain operations and a stronger competitive edge in international markets.

By pushing the boundaries of efficiency and innovation, NATPET and Maersk are setting the stage for a new era in petrochemical supply chain management.