SEOUL, South Korea — Kumho Tire Co. Inc. is looking to "revolutionize" its supply-chain management by working closely with global shipping giant A.P. Moller – Maersk.
By designating Maersk as its global logistics partner, Kumho said it will "strive to provide services that can increase customers' convenience and satisfaction based on a stable and efficient logistics system."
The partnership seeks to combine Maersk's expertise in global transport and logistics with Kumho Tire's strong foothold in the automotive sector, the parties said. The collaboration is poised to revolutionize Kumho Tire's supply-chain management, leveraging Maersk's fourth-party logistics (4PL) visibility solution for a five-year period, along with domestic intermodal services for three years.
Maersk is expected to manage more than 40,000 FFE (40-foot equivalent) volumes per year starting from 2024, the partners said.
Kumho Tire has used Maersk Ocean service for years, while Maersk is committed to providing integrated solutions for customers, the collaboration has now extended to the logistics domain, showcasing the mutual trust and confidence between the two companies.
The expanded collaboration reflects Kumho Tire's recognition of its expertise in delivering end-to-end logistics solutions that cater to their evolving business needs, according to Wan-Ju Lim, executive director of Kumho Tire's management planning division.
"We constantly push boundaries and set new standards in supply-chain management," he said. "This extended partnership is expected to deliver substantial benefits, not only in enhancing operational efficiency for our customers, but also in generating significant cost savings and enabling effective end-to-end stock level management through route optimization and the reduction of global supply-chain bottleneck issues."
Financial terms or impact of the pending deal — it's at the memorandum of understanding stage — were not disclosed.
Announcement of the deal coincides with recent moves by Kumho Tire USA Inc. to shore up its supply-chain management in the U.S.
Among the moves are the opening a 400,000-sq.-ft. distribution center in Dallas and disclosure of plans to build a 350,000-sq.-ft. warehouse distribution center in Franklin, La., capable of handling 5 million passenger and light truck tires a year when it opens in 2026.
Kumho also operates distribution centers in McDonough, Ga., near its sole U.S. factory in Macon, Ga., and in Rancho Cucamonga, Calif.
Copenhagen, Denmark-based A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers' supply chains. It operates in more than 130 countries, maintaining over 7 million square feet of warehousing capacity at 450-plus sites, while operating over 700 container vessels making calls of part at 65 ports in 36 countries.