Service Operations Management: Maersk Line

Service Operations Management: Maersk Line

Introduction

The following paper based on one of the biggest logistic and supply chain corporation that is known by the name of A.P. Moller-Maersk A/S. Thus, the area of research is to highlight the operational management of Moller-Maersk and in doing this, major services of the organization are highlighted in the paper. To provide readers an in-depth analysis of the operational side of organization, operational structure of the organization thoroughly studies. Beside operational structure, tactical and strategic challenges are also considered that faced by operational managers in modern world situations and at last, the consumers perspective regarding the organization is also studied.

Company Introduction

Maersk is known for its diversification and involved in range of different activities that include shipping, energy, retail, transportation and off shore. Secondly, the group is also involved in production of gas, oil and other oil related activities, for instance, oil drilling and off shore services. Maersk is one of the biggest giant in logistics industry having around 1000 different companies with operation spread worldwide in 130 countries. The parent country of group is Denmark, but the corporation having its major offices in United States, United Kingdom, Qatar, Hong Kong, Brazil, and Singapore and in other geographies. As already stated that group operates different businesses but our focus of research is towards the logistics and supply chain business and in that division, there is Maersk Line, APM Terminals, Damco, Maersk Supply Services (Fremont, 2007).

From Maersk Line perspective, it is a global container shipping company that engaged in providing ocean transpiration throughout the world. One can easily figure out Maersk presence worldwide in a way that, at the end of fiscal year 2012, Maersk Line fleet consisted of 270 owned vessels and also 326 chartered vessels.

Operational Structure of Organization

Diversified Revenue Streams and Geographic Spread

Maersk's revenue stream is diversified in terms of business lines and geographies. The group comprises approximately 1,000 companies, involved in a wide range of activities within the transport, energy, offshore, retail and manufacturing industries. The group conducts its business in 130 countries across Europe, Asia, the Americas, and the Middle East and Africa. The group operates through ten business divisions: Maersk Line; Maersk Oil; Dansk Supermarked; APM Terminals; Damco; Maersk Drilling; Maersk Tankers; SVITZER; Maersk Supply Service; and Maersk FPSOs and Maersk LNG. The Maersk Line division accounted for 45% of the total revenues in FY2012, followed by Maersk Oil (16.9%), Dansk Supermarked (15.9%), APM Terminals (7.9%), Damco (5.4%), Maersk Drilling (3.1%), Maersk Tankers (2.1%), SVITZER (1.5%), Maersk Supply Service (1.5%), and Maersk FPSOs and Maersk LNG (0.6%).

Furthermore, the group also has geographically diversified revenue spread. In FY2012, Denmark, the group's largest geographical market, accounted for 18.9% of its total revenues. During the year, the US accounted for 9.5%, Qatar (7.3%), the UK (5%), China and Hong Kong (3.6%), Brazil (2.4%) and Singapore (0.6%). Other geographies accounted for the remaining 52.9% of the total revenues of Maersk (Notteboom & Vemimmen, ...