The relationship between Greencarrier Freight Services and Haglöfs started over a decade ago. It all began with a fruitful conversation and resulted in a long-lasting relationship that has only grown stronger over the years. Derived from shared values and engagement, Greencarrier Freight Services helped Haglöfs with two main challenges. The result? Increased liquidity and sustainable logistics.
One of the world’s largest suppliers of outdoor equipment
More than a century ago, Wiktor Haglöf designed a backpack for local workers in the small Swedish town of Torsång. The creation of this durable, practical backpack would mark the beginning of what has now become one of the world’s largest manufacturers of outdoor clothing, footwear and hardware. The Haglöfs brand is currently marketed to the Nordic region, Europe and Asia, and has been owned by ASICS Corporation since 2010.
Tied up assets due to regular transactions of goods across the borders
When Greencarrier Freight Services and Haglöfs first met, it was all about discussing possibilities. Haglöfs was experiencing tremendous development and strong growth.
Haglöfs was collecting goods from multiple suppliers across Asia. The goods were shipped by sea on a regular basis to Haglöfs’ warehouse in Sweden. At the warehouse, the goods were picked and packed based on customer demand and delivered to stores across Sweden and the rest of Europe.
However, when the goods arrived at the seaport in Sweden, Haglöfs had to pay for customs duty and VAT (Value-Added Tax), just like all importers are obliged to do. Rates for customs duty varied from zero to 16 per cent and the VAT was up to 25 per cent.
With the regular transactions of goods across the borders, this meant Haglöfs had a lot of their assets tied up.
Long lead times to the Chinese market
Around the same time, the customer demand for Haglöfs’ products on the Asian market started to really take off. Soon they could see a drastic increase in orders from Asian customers.
At this point, Haglöfs still collected goods from suppliers in Asia, shipped the goods to Sweden and had them picked and packed – only to transport them all the way back to Asia for delivery to Asian stores.
This resulted in long lead times for the Chinese market and unnecessary transportation costs, not to mention the negative impact on the environment.
And so Haglöfs was faced with yet another challenge.