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Maersk and Kotahi Forge a Transformative Partnership for integrated Logistics
This case involves a strategic partnership between Maersk and Kotahi, initiated in 2014 through a decade-long ocean logistics contract. As Maersk shifted towards integrated logistics services, it faced challenges due to its exclusive partnership with Kotahi, which manages Fonterra's logistics. To address this, the Triple Fit Canvas was employed to enhance collaboration and communication, leading to the establishment of a new 10-year contract that projected significant revenue growth and strengthened relationships across various strategic fronts.
The Situation
The strategic partnership between Maersk and Kotahi began in 2014 with a decade-long ocean logistics contract. Kotahi, primarily owned by Fonterra, manages Fonterra's logistics operations. As Maersk aims to enhance its integrated logistics services, it seeks to strengthen its relationship with Fonterra while preparing to renew their contract expiring in 2024. This dynamic led to challenges, particularly regarding the exclusivity of the partnership with Kotahi, while also needing to unlock mutual growth for both the companies.
The Challenge
The challenge faced by Maersk was the exclusivity of its partnership with Kotahi, which created a clear separation from Fonterra's headquarters. This exclusivity led Kotahi to perceive Maersk's strategic shift towards integrated logistics as a potential threat to its own position with Fonterra and in the market. This situation necessitated a careful approach to maintain the partnership while addressing the concerns of all parties involved.
Moshe Loberant at the Value Creation Summit 2023
The Benefits
The results of the collaboration between Maersk and Fonterra included the establishment of a global logistics charter and the integration of an "Integrator Strategy" into a new 10-year contract. This led to projected annual revenues for Maersk exceeding USD 150 million for global logistics, over USD 20 million for New Zealand logistics, and significant advancements in digital collaborations and sustainability efforts. Additionally, the partnership identified $45mn opportunity for Fonterra & Kotahi.
The Solution
The Triple Fit Canvas facilitated a strategic framework for Maersk to engage with Fonterra-Kotahi. It helped identify new areas for development, rekindle the partnership, and foster open communication. The Triple Fit workshop led to the creation of a global logistics charter and the integration of an "Integrator Strategy" into a new 10-year contract. This approach not only reassured Kotahi but also strengthened relations with Fonterra, unlocking significant revenue potential and enhancing collaboration.