The lack of transparency in the ocean freight industry always frustrated me. Spending resources on time-consuming rate negotiations caused other supply chain projects to come up short. Xeneta’s index-based pricing model helped us get rid of tendering, free up resources to focus on broader supply chain optimization projects, while at the same time build a more trustworthy relationship with our freight-forwarder – rather than chasing short-lived procurement successes.
Ekornes & DB Schenker use the Xeneta Shipping Index (XSI™ ) to achieve significant improvements in their supply chain and build a stronger supplier relationship
Ekornes ASA is the largest furniture manufacturer in the Nordic region and principally known for its luxury line of reclining armchairs and sofas that are sold under the trademark "Stressless.” The company employs more than 1600 people worldwide with its products manufactured in Norway and marketed across large parts of the world by a network of national and regional sales companies.
The Challenge
Ekornes exports high-quality furniture out of Europe to all continents. Quality and delivery are the most important indicators, while procurement must ensure that paid rate levels are in line with market developments. Due to the high volatility of both
volumes shipped and the instability in the market, the team had to conduct quarterly or sometimes monthly tenders to secure competitive market rates. The tender
rounds consumed endless resources and kept the team from pursuing other supply chain projects.
Solution
To gain transparency into the market and be on top of market movements in real time, Ekornes subscribed to the
Together with DB Schenker, a Xeneta customer as well, Ekornes now profits from an index solution, which calculates a monthly index rate based on Xeneta data and then clears the payment process for the corresponding month with an invoice on the last day.
Ekornes is ensured that they pay fair market rates, while DB Schenker profits from a long-lasting, transparent customer relationship. They are guaranteed profitability,
independent
Customer loyalty and strong relationships are some of the keys for success at DB Schenker. With the Xeneta index we are able to provide Ekornes with constant transparency, the best rates and exceptional service. In addition, we are able to build trust with Ekornes giving us a competitive advantage and be a leading player in the industry.
