VALUE RE AL I SAT I ON I N P RAC T I C E
W H E N FA I L U R E ISN’T AN OPTION SWI TC H BY MAE RS K L I NE
Over the past decades, the shipping industry has made a huge impact on the global economy by continuously offering better transport solutions. Maersk Line has been a key contributor to this development, enabling customers to deliver on their promises. Unfortunately, this value creation has not translated into satisfactory bottom line gains for Maersk Line. In the shipping industry, price differentiation is limited, which makes competitive cost performance crucial for long-term survival. In the last five years, Maersk Line has raised performance from below to In the shipping industry, slightly above the inprice differentiation is dustry average, leaving limited, which makes room for improvement. competitive cost
performance crucial for long-term survival.
Through standardisation, simplification and automation, SWITCH improves timeliness, consistency and accuracy in a cost-effective way.
To address this issue, the SWITCH programme was launched in early 2013 with the purpose of streamlining management decision making by providing timely and accurate financial data through global standardised processes made possible by one central IT system. Through standardisation, simplification and automation, SWITCH improves timeliness, consistency and accuracy in a costeffective way. Due to the importance of SWITCH and the motivation behind it, failing to deliver the promised results was not an option. Therefore, the SWITCH programme decided to follow the Value Realisation approach (see page 10 for further details) – which applies a steely-eyed focus on the intended benefits as well as the resources and capabilities of the receiving organisation.
Business as unusual
SWITCH IN BRIEF
The SWITCH programme is focused on standardising, simplifying and automating systems and processes on one global IT platform. The programme affects two core processes of the machinery driving Maersk Line’s engine. The first process, Procurementto-Pay, deals with how to procure and, “The SWITCH programme is already well ultimately, pay for goods. Shipping is on its way to delivering the planned a cost-intensive industry – this means benefits – all less than 18 months after that Maersk Line must weigh deciprogramme initiation. The early engagement sions heavily and have an established with all stakeholders on the benefit case decision-making process for the operaand on how to realise it has strengthened tion. The second process is Accountingthe understanding, determination and to-Reporting, which deals with how willingness to take ownership” accounts are managed and how informa—CAMILLA ALM, DIRECTOR, MAERSK LINE tion is disseminated throughout the organisation to facilitate sound decision making. Essentially, SWITCH enables the organisation to base decisions on timely and accurate management information by providing efficiencies, better data quality and faster book closure.
Business as unusual