Challenges Faced by A.P Moller Maersk Company
A.P Moller Maersk is a Danish integrated company that deals with the shipping of commodities and merchandise. The company engages in both ocean and inland freight transportation. Besides, it deals with other services such as supply chain management and operations of ports. The company’s physical location is in Copenhagen, Denmark, although its offices are distributed in over 130 countries. Currently, the company has 98 vessels that provide offshore services worldwide. The company is recognized globally as the largest shareholder of containerized trade. Maersk drilling is another business venture the company deals in as they operate over 27 offshore drilling stations worldwide. The company, therefore, supports the global energy supply through the exploitation, extraction, and transportation of oil and gas. Despite the rapid progress, the Maersk company faces some challenges as they approach strategic sourcing in the modern economy.
The rampant advancement in the technological realm has adversely affected the company, especially on matters regarding cybersecurity. Shipping companies have become vulnerable to cybercrimes. As asserted in previous studies, “Today, cybercriminals are embezzling users of virtual space (cyberspace). Their targets range from individuals to companies. In this scenario, the shipping industry has become an especially attractive target for cybercriminals, largely because it moves goods of large monetary value from and to ports through shipping. Unfortunately, this industry is also amongst the least prepared to guard itself against cyber transgressions. In 2017, a major cyber-attack on AP Møller-Maersk, the world’s largest container shipping company, using the NotPetya virus, served to dramatically (and quite catastrophically) highlight the severe vulnerabilities of the shipping industry in this digital world” (Barthwal & Agarwala, 2019). Another challenge faced by the Maersk company is the safety of the employees. Over the years, the company has lost several employees due to fatalities within the business operations. Such trends normally paint a negative image of the reputation of the company.
The company can overcome these challenges using various strategies. First of all, the issue of cybercrime has to be dealt with immediately. As mentioned by Awan et al. (2017), “some aggressive groups of security have to be introduced to develop novel techniques, tools and strategies to overcome vulnerabilities, attacks to infiltrate an inadequately protected system network and interrupt.” Some of these techniques encompass increased cyber flexibility, thorough training to cyber personnel, and setting up critical infrastructure for cyber-surveillance (Awan et al. 2017). The issue of safety can be resolved by ensuring that all employees adopt a strong safety culture.
Since the incidences of fatalities in the company damage the company’s reputation, a strategy that can be adopted to improve involves the use of social media. This assertion resonates with the findings of Zaif & Cerchia (2019), “By implementing social media marketing, Maersk managed to build communities among professionals, employees, and current or potential clients. The company’s image has been improved, gaining personality (through posts related to employees, work environment, activities undertaken, projects, and social involvement).” The CPO of Maersk company can therefore ensure cybersecurity by adopting these practices. Besides, the CPO can ensure that employee training is mandatory to curb issues of fatalities in the company.
To sum it all, A.P Moller Maersk is an integrated company that deals with merchandise shipping. Since its inception, the company has continued to progress in various aspects throughout the globe. Despite the major developments in the company, the company faces some challenges. These threats include cybercrime issues and the safety of employees. The company can adopt various mitigation measures, including adopting critical cyber infrastructure and training of employees on matters regarding safety to reduce fatalities.
References
Awan, J. H., Memon, S., Khan, R. A., Noonari, A. Q., Hussain, Z., & Usman, M. (2017). Security strategies to overcome cyber measures, factors, and barriers. Eng. Sci. Technol. Int. Res. J, 1(1), 51-58.
Barthwal, N., & Agarwala, C. D. N. Industry 4.0 in the Shipping Industry: Challenges and Preparedness–The Prevailing Scenario.
THORISSON, H., BAIARDI, F., SALMINEN, M., Van, R., ERDEGHEMc, R. S., PAQUIN, B., & James, H. (2020). Cyber Security Challenges to Arctic Critical Infrastructures. Cybersecurity and Resilience in the Arctic, 58, 60.
Zaif, A., & Cerchia, A. E. (2019). Integrating Online Marketing Strategies in B2B Companies. Ovidius University Annals, Economic Sciences Series, 19(2), 614-620.