Transforming logistics through technology-enabled, digital supply chain solutions: Maersk

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A.P. Moller – Maersk’s strategy is to offer integrated solutions for smooth and optimised cargo flows that can span across all steps of the supply chain and create value for customers in the form of better supply chain outcomes, increased transparency and control, and ultimately lower end-to-end costs. This vision is being delivered by combining the broad product and service offering of ‘Logistics & Services’ with the highly reliable and more differentiated ‘Ocean’ transportation offering. In addition, significant financial and operational synergies are being realised between Terminals and Ocean via close collaboration to drive efficiency. One of the important elements binding all these aspects together is ‘Technology’.

Vikash Agarwal, Managing Director, Maersk South Asia, said, “Technology enablement is critically important for all value creation elements. It enables the creation of new products and services, facilitates a seamless, state-of-the-art, end-to-end customer experience, enables standardisation and automation of processes, and powers the next levels of operational excellence and efficiency.”

A key enabler of Maersk’s strategy is the digital transformation, where massive acceleration in activities was witnessed in the last two years. The turnover on the Maersk.com platform, which includes Maersk.com, Twill.net, Maersk Mobile App and EDI (Electronic Data Interchange), reached USD 38bn in 2021, an almost 90% jump from 2019. The traffic on Maersk.com increased by 15%, and the search for Maersk’s Ocean products increased by 52% in 2021. The number of bookings processed on the mobile app increased more than 15-fold, indicating a massive shift in how customers prefer to engage, especially in the times that drove social distancing and remote working. Instant booking confirmation was offered on 70% of the transactions on Maersk.com, an industry first that contributes towards frictionless transactions.

Vikash added, “There are enough and more examples of our Indian customers who have not only appreciated our digital solutions but embraced them and made them an integral part of their businesses.”

Maersk Flow:

Maersk Flow is a digital supply chain management tool designed to streamline customers’ supply chains. Maersk Flow enables transparency in critical supply chain processes and ensures that the flow of goods and documents is executed as planned. It also reduces manual work and costly mistakes while empowering logistics professionals with all the current and historical data they need to improve their supply chain sustainably.

Mehali Papers, an established, INR 500 crore turnover firm whose promoters have been in the paper industry for more than 25 years, has deployed Maersk Flow to streamline its supply chain management and get its logistics operations on a single platform. The solution has given them the advantage to empower their stakeholders with technology and information accessible in one place.

TradeLens:

TradeLens, an open and neutral supply chain platform underpinned by blockchain technology, enables true information sharing and collaboration across supply chains, thereby increasing industry innovation, reducing trade friction and ultimately promoting global trade. TradeLens is a solution that is looking for connecting the ecosystem by bringing all stakeholders on a single platform and fostering collaboration and trust through secure technology.

Two of the most significant benefits of TradeLens experienced by customers are visibility and electronic documentation. ‘Top Trading’, a company with over 25 years of export business, appreciates the simplified document management achieved through the electronic Bill of Lading (eBL) that gets transferred digitally instead of physical papers being couriered, thus reducing the risk of them getting lost or adding unnecessary costs arising out of delayed document transfers. Similarly, ‘Ravi Foods’, one of the largest exporters of baked and confectionery items, with supply chains spanning over 120 countries, enjoys swift and easier documentation handling through TradeLens. ‘Ravi Foods’ has also benefitted from higher visibility of goods’ journey offered by TradeLens, which allows them to inform all stakeholders on the logistics milestones.

QBIS analysed a study from the Global Alliance for Trade Facilitation (GATF) into the Total Transport and Logistics Costs (TTLC) for import and export containers transiting through Nhava Sheva port, and estimated that improved document flows and supply chain visibility offered by TradeLens potentially could save importers up to 220 million USD a year and exporters up to 40 million USD in lower transport and logistics costs. Assuming similar potentials in other Indian ports as in Nhava Sheva, the savings nationwide could reach 860 million USD.

Twill:

Twill, a digital solution that simplifies global logistics for small or medium-sized businesses by offering all necessary supply chain solutions on a single intuitive platform, allows customers to be handheld through the most complex supply chains. ‘Teknix Elevators’ and ‘Kajaria Ceramics’, who have been using Twill for their shipments, appreciate the hassle-free service they get all the way to their doorstep, including customs formalities. Twill’s transparency and ability to simplify supply chains has been welcomed by the customers.

Maersk has laid the foundation for its digital transformation by creating and rolling out the digital platforms for customers. Vikash adds, “Digital transformation is a marathon where we will keep evolving to ensure our customers have access to even more simplified and standardised supply chains. We are building an in-house technology powerhouse that will modernise the legacy infrastructure by adopting best-in-class software development methodologies”. He added, “Our goal is to use technology to drive efficiencies through data that allows us to optimise and make informed decisions.”

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