Outsourcing adds value, reduces costs

The Solution

That is when PSA BDP came into the picture said Mr. Fred Enter, Manager of Logistics for Cerexagri BV. Located in the Port of Rotterdam, Mr. Enter is responsible for all incoming and outgoing transportation, warehousing and packaging.

“A colleague at our headquarters in Mumbai, India mentioned they were working with a resource, [PSA BDP,] and that it could be beneficial if we contacted them to help speed up the B/L process between the offices in The Netherlands and India,” Mr. Enter said. “That is where the relationship took off. Earlier, we had made calculations to determine if we should go with an external party, which included benchmarks for services and costs.”

The other business issue Cerexagri had to resolve was the replacement of the staff position. “Our goal was, if we can outsource, it will be less costly. Instead of hiring new staff, we decided to go with [PSA BDP,]” Mr. Enter added. “They are located seven miles from our offices, which is a big advantage. Also, we found there is a close connection in the way both of our companies think about business and how we like to execute it.”

The scope of services

PSA BDP took over the complete export administration for Cerexagri, picking up product from France and Belgium, as well as The Netherlands. The scope of services includes assisting Cerexagri’s logistics department for ocean export and European trucking, logistical back-up on staffing issues, and logistics consultation in negotiations with vendors (carriers/trucking companies).

“[PSA BDP’s] services cover arranging transport, documentation, and all customs issues. Everything to make my life easier,” Mr. Enter said. “While there are always challenges, [the team] nhas done a great job in helping us arrange and manage our transport. They work with us to negotiate rates with the transport companies. When I have specific wishes for a transportation lane, I can ask my [PSA BDP] colleagues to look at other resources—we expect a certain quality level and closely watch costs.”

“We handle booking with the ocean and trucking delivery vendors, all paperwork, loading slots and agreements, and warehouses…every possible step associated with transportation,” said Andre van Maanen, PSA BDP Branch Manager in Rotterdam. “It depends what has to be done with the cargo, including repacking. We look for areas where we can help Cerexagri reduce costs by doing things a little bit differently. It is an open book partnership.”

Working and training as a team

The contact between the two companies is so close that training involves both parties: 

PSA BDP staff are trained by Cerexagri and vice versa. “We are a part of their logistics team. Although we are still a service provider we have a strong relationship. Everything is done together with Cerexagri. It is real teamwork,” said Luc Wellens, Director of Sales, Western Europe, Global Chemical & Life Sciences for PSA BDP.

PSA BDP staff members are there as logistical back-up, for support communications with the client’s warehouses, planning issues with Cerexagri’s head office in India for approval of export documentation, as well as with their clients regarding road transport and planning for delivery.

“Cerexagri wants the best logistics solutions for their end customers, so everything we do jointly is tailored specifically to serve their customer base,” Mr. Wellens added. “We identify the pain points in their process to make sure the  best operational experts are involved from day one of our relationship.”

“One of the reasons our relationship is a success is that [PSA BDP] has a dedicated team working on our account. The communications lines are very short, which enables us to talk with each other if anything requires immediate attention,” Mr. Enter said.

Mr. Enter sees PSA BDP as an extension of his own operations. “We don’t view [PSA BDP] as an external company. I treat them as part of my own team. When you have one team you work well together.”