What was the requirement?
Marks and Spencer procure products from suppliers on both and FOB and landed basis in international locations. M&S negotiate with the ocean shipping lines annually to secure the best possible tariffs for the movement of freight from origin to the UK. Despite a steady migration from Full Service Vendors (FSV) to a direct buy model (FOB), these annual negotiations covered both import models.
Before M&S began negotiations, all FSV suppliers used their own import partners to import to the UK. In 2007 M&S created a freight club to which all M&S suppliers were eligible. The creation of the freight club allowed M&S suppliers to enjoy the preferential tariffs M&S negotiated annually.
By allowing suppliers to use the M&S network or Nominated Carrier Scheme (NCS), M&S could be assured that suppliers buying their freight at a competitive rates with a degree of visibility.
Initially the uptake from a few of the larger M&S suppliers was slow and CML was approached by M&S and asked to assist with the conversion of the FSV operating outside of the scheme. CML where allocated in excess of 5000 TEU to offer to the converting FSV’s.
Why were CML approached?
Already having the extensive experience supporting some of M&S’s larger FSV’s, CML were approached to support other FSV suppliers that would transfer to the new rates.
CML possessed the capability in terms of systems and agent network to offer M&S’s FSV suppliers support to plan full origin to destination shipments using the M&S Freight club.
What did CML do?
CML approached all unconverted FSV to offer the NCS negotiated tariff supported by the CML import services.
What was the outcome?
In the first year CML managed to convert many of the none converted FSV, which amounted to in excess of 5000 TEU. This made CML one of the largest shippers under the NCS freight club scheme.
CML delivered a seamless service utilising their imports experience, agent network and freight systems. Although many of the FSV’s have converted to FOB, CML still manages the imports of in excess of 1000 TEU for M&S FSV. Many of the FSV suppliers still continue to direct their non-M&S import traffic through CML as they continue to deliver the very best imports service.