The company has taken this bold step of streamlining their supply operation by embracing the real-time digital platform offered by Source2Sea. An added benefit of going digital is the ability to chart a path to transparent, streamlined procurement leading to accurate, time efficient deliveries. In addition, the regular supply categories are covered including provisions, stores, spare parts, chemicals, paints, and lubes.
MSC’s direction has been clear from the start of discussions: make a digital transformation of their procurement and supply processes that substantially improves efficient working ashore and at sea, “easy-to-use” assisting with crew welfare onboard. “The first and most important step in this transformation journey has been to acknowledge that, until now, the industry has not been ready to an extent necessary to drive the transformation.
“Our close collaboration with Source2Sea and key suppliers of ours has accelerated this journey that has been pivotal for MSC and is poised to be so for the marine supply industry as well. “We are now rapidly expanding to other suppliers who are either already on the platform or coming on the platform in the coming period,” says Luigi Staccoli, Chief Procurement Officer, MSC. Luigi Staccoli continues “We needed to create a common framework with suppliers and move from generic items to specific items through a digital platform.” Sharing data is critical to the new supply arrangements. This, Source2Sea willingly provides.
With this shared data, there is only one source of truth for both the shipping companies and their suppliers, thereby preventing misunderstandings and mis-deliveries. Now, MSC Procurement, MSC Technical Management, MSC Fleet and the suppliers know exactly what is being ordered and delivered and the price. “In essence, we have seen a development where the Source2Sea platform has made provisions ordering and delivery as well as controlling vessel spend a much easier process across our procurement and fleet management functions as well as the fleet itself. Errors have been almost eliminated. “I am particularly pleased about this transformation,” Luigi Staccoli concludes.
Despite its small share of Operating Expenditure (OPEX), having the right provisions, stores and consumables onboard has an outsized impact on seafarers’ wellbeing and safety. Mikael Weis, CEO Source2Sea explains: “The shipping and ship supply industries have been slow to join the digital transformation, but now that broadband satellite connectivity has become available onboard all vessels, things are changing fast. “Our digitalisation of marine procurement and supply reduces complexity, enables reduced cost through greater efficiency and transparency, and will finally benefit all stakeholders in the supply chain, including the vessel crews.” The shared data is accessible in real-time on the Source2Sea platform. It is seamlessly integrated with shipping companies’ Fleet Management Systems and the ship suppliers’ ordering and ERP systems.
“We needed to create a common framework with suppliers and move from generic items to specific items through a digital platform.”
Mikael Weis continued “On the supplier side, the processes have also become much more efficient and effective. The former analog ordering – and at times unintentional communication disconnect – was inefficient, time consuming and costly for both MSC and the provisions, stores and consumables suppliers. “In place is now an efficient process eliminating endless Requests-for-Quotation and orders that have to be more or less interpreted by suppliers. “Instead: hassle free delivery of the right products in the right quality onboard the vessels reducing returns to almost zero and – most importantly – strong customer satisfaction at all levels”. It is a vital feature for MSC that they are now able to ensure that the items meet their ESG demands.
This information is made accessible for the crew, which helps MSC manage their waste on board – mitigating overspends and food waste. Source2Sea aims to empower crews and purchasers as well as incentivise suppliers, all the while reducing costs and increasing transparency. The marketplace is developed in close collaboration with and for leading industry players on both the supply and demand sides. Source2Sea is already serving leading shipping companies and suppliers globally with solutions at scale – and growing rapidly.
