Investor Presentaiton
23
A.P. Moller-Maersk Annual Report 2020
Directors' Report Our business
Strategy
=1
6,000 FFE
Weekly bookings for
Ocean customers
With the launch of Maersk Flow in Q3 of 2020,
A.P. Moller-Maersk is now offering a digital supply
chain management tool for mid-size customers to
improve their supply chain performance through
better visibility and control of their shippers, car-
riers and shipments. This marked the entry into a
customer segment A.P. Moller - Maersk has earlier
struggled to serve well and which was extra chal-
lenged by the supply chain disruptions caused by
the COVID-19 pandemic.
Maersk NeoNav, launched in December 2020,
have significantly upgraded A.P. Moller - Maersk's
capabilities in the supply chain planning and
orchestration areas. With Maersk NeoNav,
A.P. Moller-Maersk is among others able to con-
nect customers' demand data with data on inven-
tories and cargo flows and thus optimise these
parts of the supply chain in near real time, leading
to very significant value realisation. This innovative
new product has been well received by customers
with large, global supply chains and is currently
in the implementation phase with two very large
customers.
2
Seamless
13x
More weekly volumes
than the same period
the previous year
customer engagement
Adding more products is fundamental towards
becoming the global integrator of container
logistics, but equally important is the ability to
combine these products into tailored customer value
propositions, and more effectively serve the cus-
tomers' needs, notably through digital solutions. The
COVID-19 situation accelerated A.P. Moller - Maersk's
customers' need for digital engagement and ser-
vices, and A.P. Moller-Maersk benefited from pre-
vious investments into its technology stack, includ-
ing maersk.com and other online offerings.
Twill, a solution dedicated for small and medium-
sized Ocean customers, ended the year with weekly
bookings in excess of 6,000 FFE, which was more
than 13 times the weekly volumes compared to the
same period the previous year. In July, a new digital
offering, Maersk Flow, was introduced for small and
medium-sized customers and partners to take control
of their supply chain from factory to market. In Octo-
ber, a new cloud-based supply chain management
platform was launched, aimed at larger customers
with complex supply chains. The new platform will
replace A.P. Moller-Maersk's existing offering and
provide more integrated services and solutions, high
levels of automation, self-service opportunity, as well
as improved analytical functionalities.
Twill
TradeLens
120
Ports and terminals
50%
Of the global Ocean
market is covered by
TradeLens
Another important platform and enabler of digitisa-
tion is TradeLens, the open and neutral supply chain
platform underpinned by blockchain technology,
which A.P. Moller - Maersk is developing jointly with
IBM. In October, the world's second and third largest
container carriers, MSC and CMA-CGM, announced
that they were integrated onto TradeLens. This
means that TradeLens now covers more than 50%
of the global Ocean market. The other parts of the
TradeLens ecosystem also grew in 2020 and now
covers more than 120 ports/terminals, 24 customs
authorities, and a growing inland presence.
From an organisational perspective,
A.P. Moller-Maersk simplified its organisation in
Ocean and Logistics further by streamlining the
frontline organisation and integrating and clos-
ing down the Safmarine and Damco brands. Fur-
thermore, A.P. Moller-Maersk initiated a re-or-
ganisation of the headquarter technology and
commercial functions into a number of plat-
forms, each delivering dedicated business and
customer outcomes. This reorganisation marked
a further integration of digital technology into
the A.P. Moller-Maersk organisation and enables
faster and more agile development of new prod-
ucts and services, as well as a quicker and more
effective modernisation of legacy technology.
Customer satisfaction was impacted by the disrup-
tive effects of COVID-19, but is now again increas-
ing and has remained strong with key customers
throughout the year.View entire presentation