Hapag-Lloyd Uses Craft Platform for Supplier Visibility

The disruptions that COVID-19 caused to supply chains in 2020 prompted Hapag-Lloyd to seek better visibility across its supplier base. During that period, freight rate increases and port congestion exposed vulnerabilities, particularly the lack of data and information sharing. To address these challenges, Hapag-Lloyd sought a partner capable of leveraging big data and artificial intelligence, and in 2021 deployed the platform of supply chain technology company Craft to provide transparency through a supplier intelligence portal.

Hapag-Lloyd gathers information from Craft's supplier profiles across three main areas: core information about each company, relevant news alerts, and internal collaboration. Craft collects supplier data from industry partners, its own machine learning algorithms, and companies' operational data.

Craft's platform helped Hapag-Lloyd manage the impact of strikes that occurred at East and Gulf Coast ports last fall. The three-day strike forced some ports to halt operations, leaving shippers with limited options. In such situations, Craft's platform delivered strike-related alerts and updates to supply chain team members and other departments within Hapag-Lloyd's network. Users can customize these alerts for specific companies and risk types. Using Craft data, Hapag-Lloyd quickly adapted its product offerings to minimize negative impacts on customers.

Craft's platform also helps Hapag-Lloyd identify supplier risks. For example, whether a supplier has the financial capacity to fulfill contracted services. Geographic and geopolitical risks are also on Hapag-Lloyd's radar. For instance, in 2023, low water levels at the Panama Canal limited the volume of cargo that could transit the waterway. Additionally, over the past year, attacks on commercial vessels in the Red Sea have forced shipping lines to reroute their lanes or divert vessels away from the path to the Suez Canal. While such risks may not put a supplier out of business, they can have serious consequences for the services offered to customers.

Craft's platform also streamlines Hapag-Lloyd's processes for monitoring and managing supplier risks. The platform provides over 500 data points across major risk categories including financial, compliance, cybersecurity, geopolitical, and regulatory risks. Users can employ a Google-like search function to locate supplier profiles. This enables Hapag-Lloyd to quickly identify risks related to suppliers and take necessary measures.

Key Points:

• Hapag-Lloyd uses Craft's supply chain intelligence platform to increase supplier transparency.

• The platform provides company information, news alerts, and internal collaboration data through supplier profiles.

• During the strikes at East and Gulf Coast ports last fall, the alerts provided by the platform enabled Hapag-Lloyd to quickly adapt its operations and minimize customer impact.

• Craft's platform helps Hapag-Lloyd identify potential risks such as suppliers' financial condition and geographic risks.

• The platform facilitates supplier risk management by providing over 500 data points across major categories including financial, compliance, cybersecurity, and geopolitical risks.

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News Link: https://www.supplychaindive.com/news/hapag-lloyd-ai-supplier-visibility-craft/736873/

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