APPENDIX A

Global Sustainability Supply Chain Student Competition

Case Submission Guidelines

 All cases for the student competition are written as Requests for Proposals (RFP) issued by
your organization asking for assistance in addressing a supply chain sustainability issue.
 You are writing the case to ask for creative input from students in the form of innovation
solutions.
 You need to be clear about what your organization needs, what it wants and what is
possible.
 The length of the case should be between 5-8 pages.

Basic format:
1. Cover Section:
 Cover page (to be designed by GSCC)
o Title of project
o Name of company
o Specify that this case is for use in the student competition only
 Letter from CEO:
o A personal message from a senior executive to express high-level support
and reinforce the importance of the students’ work to the company.

2. Introduction:
 Tell the story of your company
o Describe the organizational structure
o Describe your organization values and culture
o Describe your organization’s global supply chain
o Describe your organization’s sustainable initiatives

3. The challenge:
 Describe the project
o The purpose of the project - What work is to be done?
o Key aspects of the project
o Geographical areas that are the focus of the project
o Targeted UN SDG

4. The Ask:
 Describe what is required from the students
APPENDIX A

 Specify any limitations

APPENDIX B

GLOBAL
SUSTAINABILITY
SUPPLY CHAIN
STUDENT
COMPETITION

SAMPLE CASE
The purpose of this sample case is to provide information to educators and
expose students to the type of supply chain challenge they will be asked to solve
in the competition.
Educators are encouraged to use it to prepare students for the competition, and
integrate the competition into an existing course curriculum.
This case has been adopted from CBS Case Competition 2019

Cold Chain Logistics

Photo credit Maersk
 GSCC Student Competition – Sample Case

Letter from the CEO

Dear student competitor,

I am proud to announce that Maersk has been selected as case company for Global Sustainability Supply
Chain Student Competition.
Maersk is on a mission to enable and facilitate global supply chains and provide opportunities for our
customers to trade globally, as well as source parts and materials from the most competitive suppliers.
Almost 20% of all containers globally and more than 25% of all refrigerated containers, move on our
network and on one of our more than 700 ships. We focus on simplifying and connecting our customers’
supply chains to offer end-to-end solutions for the safe transportation of their cargo. Especially the
transportation of commodities that require extra attention, like refrigerated cargo, is a focus area for us
and we see that there is a strong need for an integrated end-to-end service on a global scale for our cold
chain customers.
Focus on perishable food products that are transported using refrigerated containers and reflect upon their
end-to-end supply chain from farm to supermarket. How would you build a more sustainable supply chain
for our customers?
I look forward to hear your proposals and would like to thank you in advance for your time and for
sharing your ideas.

CEO of A.P. Moller – Maersk

 GSCC Student Competition – Sample Case

Introducing Maersk

Maersk is a global leader in container shipping and logistics, operating in over 130 countries around the
world. With over a century of experience in the industry, Maersk has built a reputation for reliability,
innovation, and excellence in customer service.

Maersk operates a fleet of more than 700 vessels and manages supply chain operations for some of the
world's largest companies. The company's services include container shipping, terminal operations,
freight forwarding, and supply chain management.

Maersk is committed to sustainability and has set ambitious goals to reduce its carbon emissions and
contribute to the global transition to a low-carbon economy. The company is also dedicated to
improving the communities in which it operates through various corporate social responsibility
initiatives.

With its global reach, industry expertise, and commitment to excellence, Maersk is a trusted partner for
businesses looking to optimize their supply chain operations and achieve their business goals.

History and values

Maersk’s origins date back to 1904 in the Danish town of Svendborg, when A.P. Møller and his father
Peter Mærsk Møller founded Dampskibsselskabet Svendborg. From the very beginning, the company
was truly global. When Maersk Line began operations in 1928, the first route was from Baltimore, USA
to various Asian ports via the Pan-ama Canal. When container adoption rates increased, Mærsk Mc-
Kinney Møller (A.P. Møller’s son) made an important decision in 1973 to invest in Maersk’s
containerization, followed by the first order of containers in 1975. Consistent growth between 1975 and
the mid-2000s has made Maersk the world’s largest container shipping company, the sixth largest port
operator and a major integrated container transport and logistics company. Today, Maersk employs
around 70,000 employees across 900 offices in 130 countries. It operates a fleet of 710 ships serving
67,000 customers.

Maersk is a public company listed on the Copenhagen stock exchange, but the family ownership
continues to have a major influence on the company’s values and strategic choices. A.P. Møller Holding
owns 41.51% of the shares and 51.2% of the voting rights. The family’s control of the company has
enabled a focus on long-term goals and growth opportunities. As one of the biggest Danish companies,
Maersk is highly ingrained in Danish society. One of the family’s objectives is to contribute to society by
developing businesses through its investments in A.P. Møller Holding, and through donations that have
a positive impact on society. The most prominent of these was the donation of The Copenhagen Opera
House located across the strait from the royal castle of Amalienborg.
 GSCC Student Competition – Sample Case

Keeping it cool: conquering the cold chain

The majority of internationally traded goods are transported by sea before they reach the end
consumer. It’s likely that most of the items you see around you will have found themselves inside a
container at some point, and approximately one in five of those containers will have been transported
by Maersk.

Maersk has been developing end-to-end logistics products and services, rather than simply shipping
goods from one port to another. This is a complicated undertaking, particularly for refrigerated goods.

“The fundamental transportation need is not just from one port to another, but from
farm to supermarket or from factory to warehouse. Today however, it is extremely
difficult for customers to source end-to-end solutions for refrigerated goods on a global
scale, and this creates complexity and waste in the international refrigerated supply
chain.”

– Morten Bo Christiansen, Head of Strategy

According to the United Nations Food and Agriculture Organization (FAO), approximately one-third of all
food produced in the world is lost or wasted every year, and a significant portion of this loss is due to
inadequate storage and transportation facilities, including lack of a cold chain. Cold chain refers to the
temperature-controlled supply chain for refrigerated goods and is considered a high-value sub-segment
of the global logistics market.

In developing countries, where cold chain infrastructure is often lacking, it is estimated that up to 40% of
food produced is lost or wasted before it can be consumed. This can have serious economic,
environmental, and social consequences, including increased food insecurity, higher food prices, and
negative impacts on livelihoods and the environment.

Efforts to improve cold chain infrastructure and reduce food loss and waste are crucial to ensuring food
security and sustainability.

The transport of goods such as fruit, meat, flowers or pharmaceuticals, has additional technological and
regulatory requirements, and as a result is more challenging compared to traditional dry-goods. Fresh
products must flow through an unbroken chain of refrigeration from the farm to the supermarket.
Shipment delays can result in products becoming worthless, therefore producers of refrigerated goods
are particularly keen on buying end-to-end logistics solutions. Cold chain logistics has significantly higher
growth rates than regular container logistics.

Cold chain solutions are extremely difficult to deliver, as they require integration of several steps in the
supply chain (see Figure 1). Currently, there isn’t a single player able to offer end-to-end cold chain
solutions on a global scale. It’s a market that several logistics companies are racing to enter, therefore
finding end-to-end solutions for the transportation of refrigerated goods is particularly valuable. In
January 2019, Maersk decided to accelerate its efforts in this area.

A key step in the cold chain is the shipping of refrigerated containers, known as reefers. Today, Maersk
is the market leader for reefer shipping and is therefore in a unique position to become a leading
 GSCC Student Competition – Sample Case

supplier of cold chain solutions. As a listed company with roots tracing back more than 100 years, the
ability to prioritize long-term strategic objectives paved the way for this success. But success within
reefer shipping is just one of the pillars needed to be a successful cold chain logistics company.

Cold chain

Cold chain cargo is typically refrigerated food (e.g. fruit and vegetables) or frozen food (meat, fish &
seafood), but also includes non-food items such as flowers and pharmaceuticals. Food transportation
typically flows from food-producing nations, such as South and Central America, to destination countries
in Europe, North America and the Far East. Unlike traditional ‘dry goods’, products must be kept chilled
throughout the supply chain to avoid damage.

Due to the perishable nature of the goods being transported, cold chain operators face higher demands
and more complex operations. Some of these demands are regulatory, as the import and export of food
and pharmaceuticals requires extensive paperwork for customs clearance, and others are customer
demands. For example, a container of mangos will be worthless if it arrives a week later than planned,
or worth less if the cold chain is broken and the quality of the fruit declines during transportation.

“Once a lemon is picked at the farm it will never get better. From here on, the more time
is spent getting it to the consumer, the more value is lost”

- Sarah Landsted, Cold Chain Product Manager

The demand for cold chain logistics is growing rapidly due to several factors. The purchasing power of
the global middle class is on the rise, creating more demand for food products such as fresh meat,
seafood, fruit and vegetables. In the developed world, modern consumers increasingly demand fresh
products and quality food with fewer preservatives and a longer shelf life, increasing the need for
sophisticated cold chain solutions.

Reefer boxes can be thought of as small flexible warehouses, but as the energy consumption of a reefer
container is high, this is not an energy efficient solution. Cold storage is therefore an important part of
many cold chains.

Reefers

Refrigerated containers are called reefers. Reefers are similar to ordinary forty-foot containers in
appearance and dimension. They are insulated and are installed with cooling systems that allow goods
to be kept at a certain temperature if they are attached to a power supply. Consequently, they require
special slots on container ships where power plugs are available. Similarly, trucks and trains with a
power-supply are needed to transport
 GSCC Student Competition – Sample Case

Cold chain and global sustainability

Approximately one-third of all food produced for human consumption goes to waste. A large share of
the food never even makes it to the supermarket. Spillage both at the farm, as well as during
transportation continues be a large issue – something that is only fueled by the complex cold chain and
the many hand-over points.

The transport sector is responsible for 24% of global energy related emissions. Maersk
has committed itself to being carbon neutral by 2050, having already reduced its per
container emissions by 46% compared to its 2007 baseline.

This immense global food loss is not only a moral problem in a world with widespread hunger, it is also a
huge opportunity. As an example, Nigeria is currently one of the largest fresh producers in the world –
all for domestic consumption. Due to a lack of cooling facilities, up to 50% of the food produced is
wasted in local markets. Providing the right infrastructure could not only minimize this waste, but could
further enable export, which would create jobs in the country and help support economic development.
Nigeria is just one example, but it is representative of many developing countries around the globe.
Being able to transport fresh produce from inland regions in Africa, Latin America and Asia, to populated
coastal regions or even to export markets, offers a significant potential business opportunity for Maersk.

Furthermore, ~15% of all global fresh produce today is airfreighted and has a large CO2 footprint.
Infrastructure improvements and developments in reefer container technology could open up sea
transportation to new markets and commodities, which is far more environmentally friendly.

“My background is in management consulting and my one key learning running the pilot
in Philadelphia has been that a glossy PowerPoint is worthless, unless you are able to
implement your paper in practice.”

- Sarah Landsted, Cold Chain Product Manager

Your challenge

“How can Maersk leverage its position as a leader in the reefer shipping market to create a more
sustainable end-to-end cold chain service?”

You are asked to develop a solution – which should be scalable globally – which would enable Maersk to
maintain its leading position in cold chain logistics. This will require innovative thinking and creativity is
encouraged. A successful solution must be aligned with Maersk’s Values and ways of conducting
business.

The aim is to reduce food waste and environmental impact. You are free to make assumptions when
needed, however, please state when doing so.
 GSCC Student Competition – Sample Case

Figure 1