Maersk Procurement

A journey towards true partnership

A.P Moller – Maersk

Introduction

Mette Christensen Global Head of Travel and related activities A.P. Møller – Mærsk A/S European Travel Manager of the Year 2011

Experience:

!   Commercial Director Scandinavia Carlson Wagonlit

!   Strategic Director of Supplier Relations Reed & MacKay

!   Scandinavian Travel Manager McKinsey & Company

!   Country Manager DFDS Travel

The A.P. Moller – Maersk Group

!   Present in more than 130 countries !   Approximately 117,000 employees !   Annual revenue MUSD 60,230 (2011) !   Profit MUSD 3,377 (2011) !   Some 70,000 shareholders !   Controlling stake held by A.P. Møller and Chastine Mc-Kinney Møller

Foundation

Container activities Terminal

activities

Oil and gas activities

Tankers, offshore and other shipping

activities

Retail activity Other businesses

Fleet and other assets

1,400 ships 60 container terminals

115 platforms and rigs 900 offices

1,100 retail activity + 3 million containers

Credit Cards/

Travel Insurance

Rental Cars/ Ground

transportation

Corporate & Marine

Air Fares

Conferences

Events

Supplier Relationship

Management

Travel Policies

T&E expense handling Travel Agencies

Category

Management

Sourcing

Travel Category Activities

Hotels

Demand

Management

Office Supplies Relocations

Company Cars Promotional Items

Why a centralised Travel Strategy?

!   A portfolio of benefits:

!   Transparency of spend !   Leverage of the Group’s spend !   Security and knowledge of travellers whereabouts !   Savings of min 10% !   Simplification of travel settlements and cash handling via a

corporate credit card with corporate liability

Improving APMM’s TCO on global travel activities by 10% (estimated spend MUSD 400) by end 2012, whilst improving

operational activities with 20%, ensuring a truly global coverage

Travel vision

Strategic Enablers

Travel Vision

Global credit card with corporate liability

Executive

Mandate

Demand

Management

Travel Management Strategy

Strategic

Travel

Centres

BU KPI

Measurement

Location: Madison, NJ, US

Location: Sao Paulo, BR

Location: Copenhagen, DK

Location: Doha, UAE

Location: Cape Town, ZA

Location: Shanghai, GC

Location: Singapore, SG

Travel Centres - locations

Location: Mexico City, MX

Challenges

!   When is a mandate really a mandate?

!   Too much desk and not enough travel

!   Keeping momentum

!   Vast number of stakeholders with different cultures

!   Number of resources needed

!   Keeping focus on strategic developments and not just on operational issues

Structured Supplier Relationship Management

!   Category strategies

!   Tier classification

!   Dedicated Category Managers on Strategic Partners

!   Genuine interest in the Partner - commitment is needed

!   Short and long term Business Plan including fulfilment of KPIs on both sides – help each other to become successful

Where is Travel Management heading....

!   Travel managers need to create value !   Internally (select stakeholder groups and key messages) !   Externally (be a valued customer )

!   Procurement driven decision making

!   Be ready for the upturn, and plan for a continued downturn

!   Centralisation