The Maersk Supply Chain Resilience Model
COPENHAGEN : One of the key lessons learnt during the pandemic and its aftermath, is that there is a need for increased resilience in supply chains. A survey conducted by the Business Continuity Institute showed that of the 526 responders across 64 countries, 34% of organizations reported an increased annual cost of €1 million or above, caused by supply chain disruptions.
Ever-changing challenges make it difficult and expensive for customers to have a global setup that is capable of monitoring possible global and regional risks to cargo movements. It’s understandable that many customers have and continue to prioritise resilience when planning their supply chains. We at Maersk have developed the Supply Chain Resilience Model to assist our customers in this matter; a tool that helps shore up resilience in supply chains, landside.
What is the Supply Chain Resilience Model (SCRM)?
Developed to help customers reduce their supply chain risks and mitigate disruptive impacts, the SCRM is built on an analysis of customer needs pertaining to service reliability, met through pre-planned procedures and structures.
The model offers customers reliable services for cargo managed and/or transported landside by Maersk, despite disruptive circumstances. By working closely with the customer to map their supply chain, we identify critical processes and suppliers, as well as key dependencies in the supply chain. This informs the risk identification and evaluation process, allowing for a structured view of factors that could lead to disruptions in the landside aspects of supply chains, and guide on how to mitigate them.
As your integrated logistics partner, we offer cohesive solutions, which is why the SCRM is a useful asset to our customers. Through Maersk, our customers can access multiple flows to market, import and export services, warehousing and customs assistance. Additionally, as we are present in so many aspects of the supply chain, we are uniquely positioned to help make our customers’ logistical experience more seamless. Our hubs mean we can absorb delays in ways others can’t, something that allows us to continue to create value-adding logistical solutions for customers.
I think this is definitively super valuable to offer to customers, especially in the current context where continuously new disruptions and challenges in different origins or destinations occur and require the customers to act. Resilience is the word of the day and will remain like this for the foreseeable future, I believe.Johanna Hainz,Global Head of Retail Vertical
How the SCRM can add value to your business
The SCRM is beneficial in a multitude of ways, but there are three key ways we see it being a beneficial addition to all companies.
Dedicated support in disruption handling
When disruptions occur, Maersk’s dedicated Customer Incident Coordination team, consisting of local and global Maersk logistics experts in resilience, assess the situation and its impact, and advise on how to manage the crisis in a structured way, using Maersk incident handling tools.
Reduction of risks to customers’ supply chain
One of the key values of the SCRM is that risks to customer’s supply chains are identified ahead of time, and mitigating steps to counteract these risks, are created. To ensure the risk evaluation is relevant and reliable, we consult risk assessment results from several risk consultancy companies, as well as work with Maersk area experts on safety, security, IT and supply chain management, giving customers a clear overview of global and country specific risks.
Alternative solutions to keep the supply chain moving
When seeking out alternatives, we take an impact-based approach, looking at each alternative with the expectation of a business continuity objective whilst measuring resilience performance. The intention is to reduce the uncertainties in the disruption through forward thinking and pre-aligned processes. One of the advantages we offer our customers is our alternative solution offerings. Using our strong networking and integrated transport capability, we offer our customers more backup solutions. The customers’ supply chain is protected by “multiple layers of safety nets”, allowing for increased flexibility and speed to keep the supply chain moving.
Stepping forward with the SCRM
Whilst we know that there are situations that we can’t control fully, we pride ourselves on constantly working to create products that offer our customers options in the face of adversity. As your trusted integrated logistics partner, we believe our Supply Chain Resilience Model will benefit you by offering a product that supports you throughout the entirety of a supply chain disruption, before, during and after.