[090611.EN.SEA] Maersk Appeals To Industry For More Efficiency and Customer Service

CONTAINER shipping should pay more attention to changes in the industry related to enhancing customer service, improving reliability, efficiency and the environment, says Maersk Line CEO Eivind Kolding.

"No more battles on rates," he said. "Instead shipping lines should be giving customers what they really want."

While Mr Kolding did not specify details of the changes, he urged the industry to discuss improvements in fundamental services and business practices, in what the company billed as a "manifesto".

What may be gleaned from such after-dinner speech sentiments is idea that if container shipping were more efficient, there would be less pressure for rate reduction, which compensate shippers for their disappointments.

Maersk's evangelism has now manifested itself with the launch of a website called changingthewaywethinkaboutshipping.com. 

The Maersk manifesto declares improving reliability not only helps, but also reduces supply chain costs and further improves competitiveness.

"Customers of course care about cost, but what they really care about is the total cost and not the price on a single box," said Maersk. "They can accept rate rises; what they cannot accept is a delivery promise that isn't trustworthy.

"Often customers value their ability to trust delivery promises more than they need a rock-bottom price - because the cost implications of late deliveries are far greater.

"Supply chains must be reworked, stores may not have products to sell to eager customers, and potentially one late cargo arrival might have implications not just for the customer's own business, but those of a range of interconnected suppliers."

Additionally, the manifest puts forward the industry should enhance its information technology infrastructure to enhance automation.

Maersk believes making it easier to book online is a key development for the industry.

"If customers are offered a more automated booking process saving them money through supply chain and inventory optimisation then we will get better control of bookings and fewer no-shows.

"Because instant booking confirmation is a two-way process and a two-way guarantee, it means the customer is also confirming.

"If customers are presented with an immediate price, with a full breakdown of charges - so they can deselect options they don't need - and a possibility to follow their order then we create security for them and they enjoy an improved overall customer experience.

"If we automate customer interactions and thereby free up time spent on filling out forms, re-work and chasing loose ends then customers could enjoy an improved personal service as we could spend the time we free up to serve them when and where they need it."

Source : HKSG, 09.06.11.