Digital logistics solutions: the international consolidation of Empresas Taylor

The transition to digital systems has turned into a natural step for all actors involved in the maritime supply chain. Thus, in 2019 Ian Taylor shipping agency, subsidiary of Empresas Taylor, began a digitalization process designed for delivering digital logistics solutions, contemplating all aspects and steps of physical documentation but in a virtual version. This 2022, together with consolidating the company’s digital model in Chile, Peru, Ecuador, and Bolivia –where Empresas Taylor has established presence–, brings the opening of a new commercial office in Bogota, Colombia, and the agency of Hoyer Group, German-based liquid bulk company and owner of one of the largest isotank fleets in the world. Philipp von Meyenn, recently appointed CEO for Empresas Taylor in April 2022, talked in exclusive with MundoMaritimo, revealing the detailed plans for the company for 2022-23.

West Coast South America

With its arrival in Colombia, Empresas Taylor is on track with its strategic objective of establishing presence in the West Coast of South America, a key area for the South Pacific trade route, connecting the continent with markets in Nort America, Asia, and Oceania. “We will begin operations in Bogotá, Colombia on July 1^st. With this new office we will cover the entire West Coast and establish indirect presence in the Caribbean through the northern coast of Colombia. This is our first step towards replicating Chile’s business model in Colombia,” says the brand-new Chief Executive Officer.

“We estimate that it will take us a period of three years to have a complete operation in Colombia,” the executive adds, also mentioning that the team in Colombia will be led by Ecuador Country Manager Fabricio Constante and Ivana Loaiza in charge of commercial management.  

Digital echoes

The model to be implemented in Colombia is the digitalization of logistics solutions that currently operates in Chile and partially in Peru, Ecuador, and Bolivia. “Digitalization of our services came from an opportunity we identified in the container clearance process as part of our natural functions as agents. As agents for CMA CGM, we have implemented this model of digital logistics solutions with a 100% virtual clearance of containers for the shipping line. This not only implies the absence of physical documents, but also includes automated processes, without human intermediation,” explains von Meyenn, who also details that all document procedures associated with agency are accessible through a portal that incorporates legal, financial, and guarantee elements, as well as online communication with all terminals and warehouses where containers transit through. “Our system is very much in line with single window model: it is designed so that the client only needs to access one platform on a single occasion,” he notes. 

However, the process of expansion of this model in Chile has not been without challenges. “The first obstacle to overcome was the problem of clearance throughout the entire chain: loading clearance information with anticipation has proven to be key for a more dynamic process and adding value to the service,” says the executive, who deepens into the steps for improving coverage –both national and international—which include improving times for importers to input their paperwork; increasing coverage to all containers moving in the systems by including forwarders; and expanding the solution to other carriers beyond the container industry, such as Ro-Ro, break bulk, etc.

Peru, Ecuador, and Bolivia

Along with replicating the operating business model in Chile, Empresas Taylor applies a localization process, this means adapting and accommodating to the reality of each country of operations. “There is a ‘common pain’ for shippers everywhere. Albeit legal, regulatory, and financial differences specific to every country, the logic can be replicated and that is why we have been able to export the model developed and implemented in Chile to other countries,” he specifies.

Ian Taylor, subsidiary of Empresas Taylor, is agent for CMA CGM in Peru and for Wallenius Wilhemsen in Edcuador. “This provides us document processes to sort in those countries. Containers create value beyond weather or not we are agents. It is a service that can be exported without being the carrier’s agent,” he says, adding that the estimated time for completing the implementation of the digital logistics solutions business model in Peru, Ecuador, and Bolivia is first half of 2023, although “the Bolivian market has to be re-thought considering the perspective from the service will be offered.”

Farewell to tugboats

Tugboats were one of the most traditional business lines of Empresas Taylor for a major part of their history. The recent decision from management to dispense with the business in the Peruvian market certainly closes a chapter for the company but leaves room for focusing even more on the digitalization and international expansion projects. “Closing tugboat operations is in line with further developing digital logistics solutions in Chile, Peru, Ecuador, Bolivia and now also in Colombia,” adds the CEO, who also mentions that the sales process of the tugboat business will conclude in July 2022.

Partners

In its more than half a century of history, Empresas Taylor has accumulated a list of prestigious clients and partners. Along with being agents for CMA CGM and Wallenius Wilhemsen, their agency Ian Taylor has been nominated as document agent for logistics giant Kuehne+Nagel. “Our digitalization proposal was what caught K+N’s attention,” adds von Meyenn, who details that the German company’s business model should be fully implemented by end-Q4 2022. “They are looking for a partner in the digitalization of their processes. However, more than a unilateral service, this is a partnership.”

The alliance with K+N is in line with the global trend of vertical integration of services. All throughout the entire supply chain, actors are looking for ways to deliver services beyond their core businesses, such as carriers offering add-ons to the traditional maritime freight. “We believe that our solutions of local maritime freight are key in the sense of being an extension for our carriers in their own logistics proposal. We see it as an opportunity, because we understand that it is a need for our clients, and we are on the way to service that.”

By MundoMaritimo