- Customers need to plan for disruption.
- Technology will solve the data visibility challenge.
- There is now a need for a sense of urgency to decarbonize logistics.
- The pandemic has boosted companies’ supply chain operations.
Charleston, South Carolina – Lectures at 48th Speaking at the annual South Carolina International Trade Conference “Post-Pandemic Customer Strategy” panel, Maersk North America Regional Managing Director Narin Phol recommended building resilience in supply chains, developing technology solutions and decarbonization solutions. The messages underscore the theme of this year’s conference, “The Importance of Upgrading Supply Chains.”
“Supply chain disruption is the norm“Observed by Mr. Phol, the past few years have heightened this reality and demonstrated to everyone in the business world the importance of supply chains.”Don’t take anything for granted,” he warned that supply chains need to be resilient and customers need to develop end-to-end plans to address inherent challenges that arise.
Traditionally, supply chains have been complex and siloed networks capable of meeting capacity demands and optimizing cost, efficiency and scale. Supply chains are successful under the best of conditions, but when tested by major contingencies, including pandemics, regional conflicts, labor conflicts, port and land-based congestion, potential obstacles can be introduced. Today, logistics professionals deal with an increasingly complex patchwork of suppliers, systems and solutions from origin to final destination.
To address these customer challenges, we focus on helping customers find end-to-end solutions, such as terminal warehouses for storage, warehousing and transshipment facilities (into domestic trailers). Just as importantly, we have invested in landside logistics capabilities to provide end-to-end solutions to our North American customers.
Maersk North America has added significant depth within its supply chain over the past few years: Performance Team provides warehousing and distribution/omni-channel fulfillment; Maersk E-Commerce Logistics provides e-fulfillment; Pilot provides last mile for B2B and B2C supply chains Logistics service and delivery. Some customers are looking for faster supply chain speed, so they created the Maersk Accelerate product – which fast-tracks shipments into the Los Angeles-Long Beach warehouse within 48 hours of unloading at APM Terminals Pier 400 Los Angeles.
Another point that Mr. Phol believes that the pandemic has accelerated and magnified challenges already in data visibility. The logistics industry will need to become more technology-driven. Technology will address the visibility issues that exist in supply chains today and enable better planning for all parts of the supply chain affected tomorrow, transforming the situation from reactive to proactive planning. An example is the digitized supply chain. A single container shipped can require up to 100 document exchanges per trip, which significantly increases shipping costs and many human errors can delay shipments.
Urgent action is needed now to reduce the environmental impact of supply chains. Decarbonization is a multi-year, collaborative effort across the supply chain, and tangible efforts are now required to achieve climate improvement goals for the next few years. Maersk has ordered 19 vessels that will use green methanol for its global fleet and more than 400 electric trucks for North America, among other sustainability initiatives.
About AP Moller – Maersk
AP Moller – Maersk is an integrated container logistics company dedicated to connecting and simplifying customers’ supply chains. A global leader in shipping services, the company operates in 130 countries and employs more than 100,000 people.
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