Delivering Cost-Efficient Green Energy: How LONGi Solar Cut Transportation Costs in Half

Established in 2000, LONGi Solar stands as a global frontrunner in solar photovoltaic (PV) solutions, specialising in mono-crystalline technology. Operating a vertically integrated PV value chain, the company is recognised for its innovation in solar wafers, cells and modules. With operations in Malaysia and multiple provinces in China, their global sales headquarters are located in Xi'an.

To support their mission, “to make the best of solar energy to build a green world,” LONGi Solar develops solutions across a variety of industries—supporting projects from large-scale power plants to residential households.

Bridging delivery limitations between Kuching and Hanoi

Kuching, Malaysia, is one of LONGi Solar’s key manufacturing locations. To keep factory operations running smoothly, the company needs consistent transportation options for their cargo—30-ton deliveries, consisting of 48 pallets each. Any lapse in availability could cause revenue loss and increased operational pressures.

Unfortunately, the Kuching’s lack of limited availability of international flights and few airport terminals able to accommodate large cargo plane routes to Hanoi posed significant challenges to LONGi Solar’s supply chain.

Its geographical separation from West Malaysia by the Sarawak River makes timely transshipments even more challenging, amplifying the company’s need for a robust logistics solution.

A strategic approach to choosing the right logistics provider

Understanding the complexities of logistics and the importance of air transportation in their supply chain, LONGi Solar embarked on a meticulous search for the right strategic provider to help overcome these challenges. They sought a third party logistics provider (3PL) that could not only meet stringent timeliness requirements but also offer cost-effective transportation solutions.

LONGi Solar’s multifaceted evaluation criteria spanned a broad range of factors, including organisational reputation, technological capabilities and the scalability of operations to meet future demands.

C.H. Robinson emerged as a strong contender early in the selection process. To adeptly navigate complex logistics challenges, particularly in air freight, LONGi Solar engaged in a strategic alliance with C.H. Robinson, creating a customised approach tailored to LONGi Solar's unique requirements. Initial interactions showed LONGi Solar that C.H. Robinson operated efficiently and delivered quality customer service.

Delivering cost efficiency with game-changing solutions

After the success of several pilot projects and support from LONGi Solar’s Logistics Director, who, drawing from past experiences, praised the excellent service standards from C.H. Robinson, LONGi Solar chose to expand the collaboration.

Together, the companies worked to build a solid foundation for a long-term, mutually beneficial relationship.

In close collaboration with C.H. Robinson, LONGi Solar addressed the prevailing challenges, focusing on enhancing cost-efficiency and refining their logistics operations. The approach from C.H. Robinson centred on utilising a comprehensive network of carriers throughout Southeast Asia. The strategy, tailored to LONGi Solar’s specific needs, ensured that cargo volume was optimally matched with the appropriate aircraft models.

Once planned, teams from both LONGi Solar and C.H. Robinson effectively executed the devised solution within a week. “When we chose C.H. Robinson, they didn't just give us a one-size-fits-all solution. They really listened to what we needed and customised their approach. Not only do our deliveries arrive on time, but they often arrive ahead of time,” shared a key representative from LONGi Solar’s logistics purchasing department.

Aligned goals lead to positive outcomes

In addition to improving on-time delivery rates, the relationship yielded other substantial benefits, most notably cutting transportation costs for LONGi Solar. “Working with C.H. Robinson, we were able to receive recommendations on the best airline option based on our logistics and route requirements. The strategic foresight demonstrated by C.H. Robinson not only yielded cost savings of up to 50% reduction in flight costs, but also streamlined our logistical operations,” said a key representative from LONGi Solar’s logistics purchasing department.

This significant cost savings serves as a testament to the value that well-executed strategies can bring to businesses—especially in the highly competitive logistics sector where cost optimisation is paramount.

Furthermore, the air freight solutions offered by C.H. Robinson enable LONGi Solar to consistently meet production schedules and successfully execute global projects. This success effectively averts the risk of accruing potentially substantial liquidated damages, thereby preserving the company's financial integrity and reputational standing.

Enabling a greener future through strategic logistics

In a strategic alliance with C.H. Robinson, LONGi Solar has exemplified how the integration of innovative solutions and strategic insights can effectively address complex logistics challenges. This successful relationship stands as a compelling testament to LONGi Solar's unwavering commitment to operational efficiency and environmental sustainability.

LONGi Solar plans to prioritise C.H. Robinson as a key supplier for future high-stakes air cargo deliveries between Asia Pacific and North America. In line with its forward-looking strategy, LONGi Solar plans to expand its collaboration with C.H. Robinson, leveraging the provider’s extensive global network to expand their international green energy footprint.