Imagination at Work: Redefining Imports for Mazda Australia

Challenge

Mazda Australia sent ocean, air, and customs brokerage services out to bid. They sought scalable savings and efficiency opportunities from a provider they could trust.

Solution

Using proprietary technology, C.H. Robinson streamlined load prioritization, locked in below market ocean rates, and uncovered customs reclassification opportunities on historical shipments.

Results

  • 23% reduction in air freight costs from Thailand to Australia
  • Substantial savings on ocean imports from Thailand to Australia
  • Duty refunds identified through reclassification of imported products

From an air freight transport perspective, C.H. Robinson offered the most competitive cost option. And when it came to customs brokerage, it was the reporting and administrative capabilities that impressed us.

- ALDO SCHEPIS
DIRECTOR OF CUSTOMER SUPPORT, MAZDA AUSTRALIA

The ability to prioritize which containers are coming into our facility helps minimize demurrage and storage costs. By managing container prioritization, we can contain costs—which can be quite extensive if container priority is mismanaged—we can also better monitor the efficiency of our operation.

- ALDO SCHEPIS
DIRECTOR OF CUSTOMER SUPPORT, MAZDA AUSTRALIA

It has been pleasing to see the strong working relationship grow between our team and C.H. Robinson. The fact that our team at C.H. Robinson is focused on our business’ success as much as we are really reinforces that we made the right decision to switch providers.

- ALDO SCHEPIS
DIRECTOR OF CUSTOMER SUPPORT, MAZDA AUSTRALIA

As a multinational automotive manufacturer, Mazda is known for creating cars that embody the dynamic beauty of life. After years of working with the same logistics provider, Mazda Australia sent portions of their import supply chain out to bid. Spanning three service areas: ocean, air, and customs brokerage, Mazda sought scalable supply chain solutions from a provider that could reliably meet their logistics needs.

Challenging the status quo with a shipping RFP

Mazda Australia imports, stores, and distributes automotive parts, accessories, and vehicles from multiple overseas locations to more than 140 authorized dealers in Australia. Despite a solid working relationship with their long-term logistics providers, the Mazda team wanted to proactively confirm they remained competitive in the current environment.

They submitted requests for proposals (RFPs) to three logistics providers, including C.H. Robinson, asking each to develop competitive solutions for ocean and air shipments from Thailand to Australia, as well as customs brokerage services for imports into Australia.

The C.H. Robinson response to the RFP offered a solution focused on the comprehensive visibility Mazda could gain across their 70,000 active SKUs and the cost savings available with such granular details.

“From an air freight transport perspective, C.H. Robinson offered the most competitive cost option,” explained Aldo Schepis, Director of Customer Support, Mazda Australia. “And when it came to customs brokerage, it was the reporting and administrative capabilities that impressed us.”

After selecting C.H. Robinson for air and customs brokerage services, Mazda soon discovered C.H. Robinson had even more to offer.

Multifaceted solutions to match Mazda’s complexity

For the duration of the month-long implementation process, the teams conducted multiple meetings every week to ensure a smooth transition between providers. The ongoing communication and collaboration prevented vehicles and containers of parts from backing up, which would have caused unnecessary storage costs.

Load prioritization efficiencies

During the implementation process, C.H. Robinson took over the load optimization and prioritization processes from the Mazda team, freeing up valuable administrative time while keeping shipments moving.

“The ability to prioritize which containers are coming into our facility helps minimize demurrage and storage costs. By managing container prioritization, we can contain costs—which can be quite extensive if container priority is mismanaged—we can also better monitor the efficiency of our operation,” shared Aldo.

Identifying potential duty refunds

In addition to handling Mazda’s ongoing customs entries for imported products into Australia, C.H. Robinson used a proprietary customs intelligence tool to review four years’ worth of the company’s historical import data. These types of ‘health checks’ help confirm previous entries are in order. For Mazda, the assessment uncovered some particularly good news.

It turned out that the company had been paying duty on parts that were actually qualified as duty-free items and eligible for a refund. The distinction for this reclassification was based on how the parts were being used once imported into the country. Ultimately, reclassifying the parts also helped Mazda minimize future customs fees on those same types of products.

New supply chain provider. New opportunities.

During the process of reviewing customs entries, C.H. Robinson learned about ongoing service and cost issues for Mazda’s ocean freight from Thailand to Australia. With 18 shipments being moved a week, the costs were quickly adding up.

Using this information, C.H. Robinson negotiated and implemented a fixed rate capacity deal with the preferred carrier of their Thailand supplier. The contract gave Mazda better flexibility to align their costs with the current market. When the market shifted and the fixed rate was no longer competitive, C.H. Robinson helped Mazda discard the negotiated rate for lower market rates—still with the carrier of their choice.

Real-world results drive savings and efficiency

The focus of both teams working together has delivered promising results for Mazda Australia:

  • The duty refunds on two reclassified products resulted in significant savings to Mazda and has saved the company additional duty fees.
  • In the first 12 months, the negotiated rates resulted in significant ocean savings and a 23% reduction in air freight costs on imports into Australia.

“It has been pleasing to see the strong working relationship grow between our team and C.H. Robinson,” explained Aldo. “The fact that our team at C.H. Robinson is focused on our business’ success as much as we are really reinforces that we made the right decision to switch providers.”

Ready for your own supply chain success? Explore how C.H. Robinson can elevate and streamline your automotive supply chain.