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Maritime 'Amazon' helps owners cut costs and secure deliveries

Klaus Nyborg, non-executive chairman, Moscord Klaus Nyborg, non-executive chairman, Moscord

“Maritime procurement can be a real mess,” states Klaus Nyborg, a veteran of the shipping industry and non-executive chairman of Singapore-headquartered Moscord.

{mprestriction ids="1,2"} “There is little standardisation of processes, mostly spot ordering instead of long-term strategic decision-making, a lack of transparency, a huge lack of efficiency, minimum added value in terms of spend analysis and, frustratingly, far too many mis-deliveries; of the wrong products, at the wrong place, at the wrong price and quality.

“Think of that ingrained culture with its myriad of disadvantages, and then think about consumer purchases through, for example, Amazon. An experience where you get what you want, when you expect it, at a predetermined price, full stop.

“Now,” he says, “why can’t we do the same for shipowners, or for the oil and gas service industry? Provide simple, transparent, cost effective procurement, with last mile delivery they can rely on? An Amazon for the oceans?”

According to Mr Nyborg, one answer to this issue is e-procurement platform, Hailed as the of the shipping world, Moscord provides a direct digital trading platform for the maritime industry, allowing procurement professionals to buy ship supply products directly from suppliers. Launched in 2016, it has quickly grown to offer a vast portfolio of over 200,000 quality products (ranging from consumables, to provisions, spare parts, safety equipment, electronics, tools and PPE) at set contracted prices.

The lean, direct and efficient nature of the channel allows the team to pare back the procurement process – stripping away superfluous layers, administration and unnecessary interactions – and thus knock down prices. According to Moscord, purchases typically come in at 20 per cent less than traditional ship supply channels.

Mr Nyborg says that offers a “modern ‘consumer’ experience to the industry.” He believes it has the ability to “empower the purchaser – for example a crew member – giving them all the details (including images, specifications and product codes etc) they need to make the right selection, at the right price, with the right quality for their requirements.

Mr Nyborg is a Danish native and a recognised industry leader in his homeland. The current board chairman of dry cargo and tanker company D/S Norden (he was previously acting CEO), he is also vice chairman of DFDS, chairman of United Shipping and Trading, served as CEO of Pacific Basin, and was a former CFO of both Maersk Logistics and TORM.

He says that at present, individual ships and crew are in the position of ordering their own supplies, meaning that the number of lines purchased across a fleet can often run into the many tens, sometimes hundreds, of thousands.

This leads to a random approach with regard to product choice and quality, poor value for money (with little economy of scale) and a complete lack of management understanding and predictability.

Effectively planning and fulfilling a cohesive procurement strategy in this scenario can be difficult, if not impossible.

And then there’s mis-deliveries.

“Feedback from the industry suggests that around 20 per cent of orders placed through traditional channels result in mis-deliveries,” said Mr Nyborg. “That can be frustrating, obviously, but it can also be disruptive to operations, and very expensive. For example, if the wrong spare part is delivered, or isn’t delivered at all as a vessel has deviated from schedule.

“That kind of service wouldn’t be acceptable to consumers and shouldn’t be to shipowners either. They need, we all need, reliable last mile delivery, every time, everywhere. In other words, standardised excellence.”

“Shipowners have a mass of procurement data, but you can only extract value from that when it’s effectively utilised – an area where Moscord has world class competence.”

He explains that Moscord can manage, clean and learn from an owner’s procurement data to create standardised catalogues for entire organisations, with fewer, approved lines allowing customers to buy with confidence (and minimising mis-deliveries).

Owners suddenly understand the totality of what they buy and where to focus energy to save money, in addition to unlocking real economies of scale with approved, contracted suppliers.

Armed with new insight companies can switch from spot purchasing to strategic procurement, identifying trends, analysing spend, increasing predictability and – with a streamlined digital process and new opportunities for automation – accessing huge organisational efficiencies.

When all procurement flows through the same channel, with the same standardised processes, this once complex, opaque and multi-faceted function becomes simple, transparent and accountable.

Complete overviews can be achieved and effective corporate governance maintained. Global fleets and offices are united and easily managed.

“That is what attracted me in the first place,” said Mr Nyborg. “This is the future of ship supply, without a doubt. Moscord utilises data and digital expertise to answer the concerns of management and solve the challenges facing purchasers. At the same time, it allows suppliers, resellers, shipchandlers and manufacturers to build direct, profitable partnerships with their customers.

“It’s tailormade for the maritime industry of today, and tomorrow - delivering not just the right products, but unbeatable value, control, convenience and understanding.” {/mprestriction}

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