Maersk faced coordination challenges in systems and processes with its customer GAP. By applying the Triple Fit methodology by Valuecreator, Maersk identified $25 million of savings per day in the customer’s value chain and created value for the customer and for Maersk way beyond existing products and services and expanded its existing offerings.
GAP Inc., an American worldwide clothing and accessories retailer, is a strategic customer for Maersk, where understanding the operations and process flow of GAP was paramount for Maersk’s successful understanding of the customer’s requirements, resulting in a winning value proposition creating huge cost savings for the customer.
An initial Triple Fit analysis conducted for GAP showed a low rating in Strategies, Relationships and Structures, and a scope for improvement in all the other fields. The analysis indicated a need for reduced inventory through speed to market and a need to discount obsolete products which was critical to the customer’s strategy. Relationships could be made far stronger by a better understanding between stakeholders both within Maersk and GAP.
The Maersk team began engaging with the customer at a value creation level by getting a clear understanding of the various stakeholders and operations. A detailed cashflow analysis identified savings through reduced lead times and lower inventory costs for GAP while increasing their speed to market and creating end-to-end solutions for the customer, unlocking significant value across the nine Triple Fit building blocks.
The Results/ Benefits
The Maersk team led by their respective Key Client Manager acting as a “conductor” with the experts supporting and driving the product solutions created a compelling global value proposition for GAP, which led to Maersk increasing its revenue and profitability for all products by a factor for 3 within one year with a projected increase of another 40% in the next year. Maersk was thus able to create significant value for GAP with its focus and purposeful direction.
The Key Client Director for GAP at Maersk, Christine Dickson, USA stated:
“With the help of the Triple Fit Canvas, I identified $25 million of savings per day in my customer’s value chain. I am now acting as the conductor of a compelling global value proposition.”
To learn more about Christine’s success story, download the PDF here.