Photo of Zainab Devaswala and Julia Persson.

In mid-2011, Maersk successfully piloted a web-based e-sourcing tool for a cash management tender for one of its business units. With the new software tool, the company was able to configure workflow to set up events, timelines, cost models, and automatically calculate pricing based on pre-defined criteria embedded in the cost model. This allowed the company to create and maintain scenarios to tailor bank data as per business requirements and drive negotiations among internal stakeholders.

The process of making transactional bank relationship transparent also involved setting up a global SWIFT project, which was successfully implemented in 2010 with all major partner banks. “We have also devised a workflow to gain control over bank account opening and closing processes. All bank account opening requests are approved centrally by the Maersk head office; post evaluation of certain elements for example, purpose, geographical location, currency, etc. Also, we recently conducted eBAM testing to evaluate if we would be able to improve the cash management documentation process with the aim of achieving significant efficiency in handling documentation with the help of an eBAM application for account opening and other services through SWIFT,” says Julia Persson, Deputy Head of Corporate Treasury.

The e-sourcing tool allows Maersk to electronically gather information from its business units and banks based on pre-defined material requesting information on pricing, cash management, payment services, and technical capabilities. “A request for information (RFI) questionnaire was designed in the form of a binary ‘yes’ or ‘no’ answer with the option to provide comments, if necessary. This resulted in easier and better analysis of the feedback that was received,” Persson explains. The tender material is then imported to an e-sourcing tool, thereby creating an e-sourcing event. Afterwards, banks receive access to this event to present proposals by logging onto the e-tool online. This allows analysis of feedback to be carried out using reports and negotiation guides available on the e-sourcing tool. “For each tender we are creating a set of weighted coefficients to determine priorities on the bank capabilities. As an outcome of the tender analysis we are able to present transparent basis for decision for all stakeholders and provide feedback to the participating banks,” explains Persson.

All the information and feedback is managed in the online tool and has significantly reduced use of multiple and complex Excel spreadsheets and MS Word documents. Banks and subsidiaries responded positively to the change and recognised the benefits the system brought.

“Today, subsidiaries are approaching the treasury to get approval for the opening/closing of bank accounts. End of day balances are reported through SWIFT for all bank accounts with partner banks creating visibility of cash balances worldwide. All new accounts opened with partner banks are set up for daily MT940 reporting into the TMS. A regular review of transaction charges is carried out to reconcile fees charged on accounts, are in accordance to the agreed pricing with partner banks. The results are shared with banks to ensure settlement and alignment in case of discrepancies,” says Persson.

One of the major benefits of the solution is the reduction in complexity when it comes to analysing information and data received from its partner banks – both in terms of pricing and service offerings. The web-based solution also allows Maersk to focus on the most important elements of the tender and rate banks based on the feedback they give. Indeed, as part of its global bank relationships, Maersk has established a regular exchange of bank account inventory with all its major banking group partners.