SKF Kenya Adopts FCA Logistics Model to Improve Supply Chain Efficiency

Last Updated 5 hours ago by Kenya Engineer

SKF Kenya has transitioned part of its customer logistics operations from a Delivered Duty Paid (DDP) model to a Free Carrier (FCA) framework, marking a shift toward more streamlined and cost-transparent supply chains in the local industrial sector.

The change affects selected customers, including an established distributor in construction and industrial supplies, as well as a newer client onboarded in 2025. Under the previous DDP arrangement—used since 2020—SKF handled end-to-end logistics, including freight, customs clearance, and delivery to customer premises. While convenient for customers, the model introduced higher operational costs, administrative complexity, and longer lead times.

The FCA model restructures these responsibilities. Goods are now prepared and handed over at a designated export point—primarily through SKF’s European distribution hub—after which customers assume control of freight, customs clearance, and local delivery through their own logistics partners. This approach reduces the supplier’s logistical burden while giving customers greater oversight of shipping processes.

From an operational standpoint, the shift reflects a broader trend in supply chain management, where companies are rebalancing responsibilities to improve efficiency and cost control. By allowing customers to appoint their own freight forwarders and clearing agents, the FCA model can reduce delays associated with importer-of-record processes and improve predictability in delivery timelines.

Implementation required system updates, coordination with international logistics hubs, and alignment with customer processes. Pre-shipment testing, customer onboarding, and process training were also undertaken to support the transition and minimize disruptions.

For customers, the new framework introduces more direct control over routing, carrier selection, and customs handling. For suppliers, it reduces exposure to fluctuating logistics costs and administrative overhead. The result is a leaner supply chain structure with clearer cost visibility and potentially faster turnaround times.

The move by SKF Kenya highlights a growing emphasis on adaptable logistics strategies within East Africa’s industrial ecosystem, particularly as businesses seek to balance efficiency, cost competitiveness, and supply chain resilience.