CUSTOMER OVERVIEW
Headquartered in Singapore, Visy Global Logistics ship over 240,000 TEU each year, their business model sees them acting as both a shipper and a forwarder, with 80% of their volumes being their own, while 20% belong to external customers. As a BCO that moves a significant amount of freight, logistics and procurement are a core focus of their business operations.
CHALLENGE
Prior to their use of Xeneta, lack of freight market transparency was a compounding issue for Visy Global Logistics. Moving large volumes globally meant that if their rates were not in line with the market, they could be overspending by millions – and they would not know.
At that time, much of their market understanding relied on anecdotal evidence from carriers and friendly peers, which was both unreliable and ineffective. Without clear, unbiased numbers to take to carriers, their ability to negotiate was challenging and led to prices that were much higher than the market average.
Peter Sundara Swamickannu, Head of Global Ocean Freight/Pricing and Tender Management at Visy Global Logistics, shares, “We didn't have any solid data to tell us what the market really looked like. We had to depend on empirical evidence—listening to friendly peers, carriers, and customers, and they were just showing some numbers that we had no way to verify. It wasn't data-driven at all.”
He continues, “I could hear a rate of say $1,000 per 40ft, and then someone else would say it’s gone down to $900 per 40ft, but what was the truth? Where was the proof to show whether it’s $900 or $1,000? That’s where Xeneta needed to come in."
As a Xeneta user in his previous roles, Peter Sundara understood the transformative power that global market data could have. For Visy Global Logistics to be an innovator in APAC and beyond, bringing in an unbiased, external data source was an essential next step.
SOLUTION
Visy Global Logistics adopted Xeneta to fuel their global ocean freight procurement efforts with real-time, accurate freight data. They use this data to benchmark their rates, make informed decisions that are internally aligned, and negotiate effectively with carriers and customers.
The Visy Global Logistics team quickly bought into the value of Xeneta, both by using it themselves and by hearing about it from other shippers within the Singapore region.
Peter Sundara explains, “I spoke to my shippers’ council members who were also Xeneta customers. They showed me how they used Xeneta and how they communicated rate trends and cost-saving opportunities to their CFOs and senior executives. That was a big moment for me — I realized that if they could use Xeneta to drive discussions at the executive level, so could we. Now, we use it in our reporting every single month.”
Visy Global Logistics integrated Xeneta’s data across their whole operations, including ocean freight procurement and commercial analysts. The data is regularly used by those needing insight into how market rates influence their decisions. When onboarding his teams, Peter Sundara is very clear, “The first thing I tell them is: If you don’t have data, how can you be confident about your rates? Xeneta gives us the proof we need to challenge the numbers, whether they’re from customers or carriers."
Most importantly, Xeneta acts as a core solution to Visy Global Logistics’ previous lack of market transparency, being a daily tool in their arsenal. Peter Sundara shares, "Every day, after I open my emails and Microsoft Teams, the next thing I open is Xeneta. It’s a ritual. We rely on it to track rate changes, compare spot and long-term contract rates, and make sure we’re competitive."
KEY ACHIEVEMENTS
Within their first year as a customer, Visy Global Logistics has seen clear success with Xeneta. This has been rooted in clear cost savings, as well as significant improvements to their internal alignment and the agility of their global decision making.
Key wins from the Visy Global Logistics and Xeneta partnership include:
- Using Xeneta, Visy Global Logistics was able to identify discrepancies between the rates they were being charged and the actual market. The platform's data gave them the power to negotiate better terms with carriers, leading to significant cost savings.
- Peter Sundara shared, “For example, on a trade lane where we ship around 10,000 TEUs, we might be able to negotiate a contract rate of $500, while the market rate could be $2,000. That’s the savings that Xeneta helps us identify and fight.”
Organizational Alignment:
- Visy Global Logistics has built a culture that is data driven and Xeneta helps in this respect.
- In less than a year, we've tripled the number of people internally using Xeneta. As soon as they saw it, people started to understand that this wasn't just a tool for procurement; it was something that could benefit the entire company."
- Armed with credible data, Visy Global Logistics has been able to negotiate from a position of strength. This resulted in better contract terms, more favorable rates, and improved relationships with carriers. Visy Global Logistics also extended this negotiating power to their customers, ensuring that they could offer competitive pricing backed by market intelligence.
- “With Xeneta, we can confidently challenge discrepancies in rates, making our negotiations much more effective. When someone tells me a rate, I can immediately check Xeneta and say, 'That's not right, the data shows otherwise.”
Market Visibility:
- With Xeneta's real-time data and extensive market coverage, Visy Global Logistics has gained unprecedented visibility into both short-term and long-term rate movements. With this enhanced intelligence, they track pricing trends across different regions and shipping lanes, giving everyone clear insight into real-time market movements.
- “Xeneta is very user-friendly. You don't need to cut and paste data - just download the reports and the visuals tell the story of the market. It makes conversations much quicker, and the data is clear and convincing."
CONTINUED SUCCESS
Visy Global Logistics is dedicated to being data-driven when it comes to tenders and pricing, and they believe Xeneta will help to get them there.
With indexing being a big topic of conversation in the market, Visy Global Logistics hopes to use Xeneta’s capabilities to create stability and reliability among freight fluctuations. “It’s the next step for us in aligning all parties,” muses Peter Sundara, “We’ll have customers, carriers and Visy Global Logistics all at the same table, with Xeneta’s index in the middle.”
In line with this, Visy Global Logistics wants to champion a more data-driven logistics approach for those operating in the Asia Pacific region. Noting that many shippers, forwarders, and carriers in the region still rely on WeChat and WhatsApp to get their rate information, Visy Global Logistics plan to innovate and bring Xeneta to the forefront of everyone’s minds.