Resilience in Action – Piloting the Supply Chain Resilience Model

One of the key takeaways from the pandemic and its aftermath, is the importance of resilience in supply chains. Unforeseen challenges have resulted in delays and headaches in logistical networks, causing barriers in ensuring timely delivery of products to consumers.

Piloting in Bangladesh

Bangladesh is a production hub for many global companies and was an optimal place to pilot the Supply Chain Resilience Model (SCRM). The model, tailored to each individual company, is developed to help customers reduce supply chain risks and mitigate disruptive impacts through pre-planned procedures and structures, working before, during and after disruption.

It was piloted with Marks and Spencer (M&S), a globally leading grocery retailer and department store, renowned for their excellence in business continuity (2021 winner of Business Continuity Award & Most Effective Recovery Award, Business Continuity institute). Maersk and M&S have a longstanding partnership, with Maersk playing a pivotal role in their global supply chain. Coupled with M&S’ experience of producing products in Bangladesh, piloting together on the SCRM made sense.

Harnessing resilience

Acting as a woven interlocking series of safety nets, the SCRM identifies key areas, including supply chain mapping, critical processes, suppliers, routes, their logistical capabilities, and key dependencies, to identify, evaluate and mitigate risks and put alternative solutions, with clear continuity objectives, in place. Possible disruptive impacts to the supply chain (like site operation suspension, port congestion/close or IT outage) are met with the SCRM’s knowledge and tools, giving companies the right instruments to manage disruptions.

The SCRM in action

To better understand how to strengthen M&S’ supply chain resilience, a joint exercise was facilitated in the early stages of the SCRM pilot. Participants included supply chain leaders and resilience departments in both companies. Through the exercise, both parties streamlined crisis responses and contingency plans, exploring opportunities for more effective responses and preparation. This was then worked into the SCRM, strengthening it further.

Congestion at Dhaka airport, caused by a malfunction of scanning machines, resulted in extensive aircraft queueing with hundreds of tons of shipment delayed for over 20 days. To mitigate further delays and avoid the cost of truck waiting time, Maersk activated a SCRM-found alternative solution, utilizing sea-air mode to ensure delivery within acceptable lead times.

Weaving 'safety nets', creating opportunities

The SCRM further strengthens our customer’s ability to prepare for and handle disruptive situations, through effective risk management, pre-planned contingency solutions, and a capable customer service team with knowledge of disruption handling.

Maersk plans to continue to implement the SCRM across multiple verticals and expand the scope to cover major origin/destination countries and regions. Acting as a safety net woven of the many logistical areas we are experts in, the SCRM is an assurance of landside service reliability and resilience. With us, you can safely put all your eggs in one Maersk basket.

As your integrated logistics partner, we are here to support your business and future growth ambitions, so if you have not already, please feel free to reach out to our local teams to learn more about the SCRM and how it can be used in your supply chain.