Maersk has signed a multi-year global integrated logistics and fulfilment agreement with Castlery, a Singaporean furniture retailer.
By leveraging Maersk’s capabilities in managing supply chains amid ongoing disruptions, the partnership will enable Castlery to offer seamless delivery for its customers, reducing wait times for orders to one to two months–about three times faster than the industry average of three to six months.
As Castlery expands into international markets, including Australia and the United States, which contributed to 80 percent of the firm’s total revenue, Maersk’s landside facilities and expertise in these markets will create additional values for Castlery to optimize time and cost savings at various points across the logistics and fulfilment chain, the companies said.
“Maersk has been a reliable partner to us since our early days, and we are very grateful for the continued partnership against the backdrop of a volatile macro environment and global supply chain uncertainties,” Declan Ee, co-founder of Castlery.com, said. “Partnering with an integrated logistics partner like Maersk for the long term gives us an edge in being adaptable and flexible to navigate disruptions and ensure efficient supply chain management. Timely delivery is critical in a digital-first furniture business, and we remain steadfast in our commitment to provide a seamless shopping experience for our customers in Singapore and the international markets.”
Rupesh Jain, managing director of Maersk Thailand, Malaysia and Singapore, said with Maersk’s strive to offer integrated logistics solutions that connect and protect customers’ supply chains, strong warehousing and distribution capability is essential to enhance customers’ supply chain performance and agility to respond to the rapidly changing market conditions.
“In the partnership agreement, Maersk will help Castlery scale its business in the U.S. across 50 metropolitan areas with secured ocean capacity, improved integration between freight and warehousing fulfilment efficiencies, and more transparent data sharing that leads to strengthened inventory management,” Jain said. “With a shared goal of creating value and improving customer experiences, we are proud to be a part of Castlery’s growth journey. Maersk Singapore has successfully tapped into our global integrated logistics ecosystem to mount a solution that provides seamless omnichannel fulfilment and last-mile delivery for Castlery’s customers. This is in addition to long-term ocean space commitments. which in effect cuts out any unnecessary nodes that can put strain on Castlery’s supply chains.”
Castlery said its international expansion has allowed the brand to leverage the global demand from discerning, Internet-savvy urban millennials for affordable modern furnishing. Catering to the needs of this fast-growing international customer base, Castlery is partnering with Maersk to further expand its warehouse capacity, with two more new warehouses in the U.S. set to open by the end of 2022.
Globally, Castlery intends to increase its total warehouse capacity by five times, with Maersk as a key partner in this build out. Castleberry furniture is distributed in 54 metropolitan areas across Singapore, Australia and the United States.