CASE STUDY Read the following case study on Maersk Line: Using the Internet of Things to Improve Supply Chain Visibility and answer the questions that follow. Maersk Line: Using the Internet of Things to Improve Supply-Chain Visibility Maersk is an integrated logistics company that offers supply chain solutions for managing shipments and cargo. Maersk Line is one of the largest shipping organisations in the world. Its international logistics network supports complex supply chains that transport fresh produce through 343 ports in 121 countries. The company’s supply chain includes refrigerated containers, ships, ports, storage facilities, communication networks, and customers in different regions. These activities must be carefully coordinated because fresh produce is perishable and can lose value if exposed to unsuitable conditions during transportation. Refrigerated containers, often called reefers, keep cargo within a controlled temperature range while it is moved between suppliers, ports, ships, warehouses, and customers. Their performance depends on a reliable power supply and effective refrigeration equipment. A temperature change, equipment fault, power interruption, or delay may damage the cargo. If a problem is identified only when the container reaches its destination, the produce may already be spoiled. Maersk may then face financial losses, customer complaints, replacement costs, and reputational damage. To improve control over this complex process, Maersk partnered with Ericsson in 2012. Ericsson provided mobile and satellite communications technology that enabled Maersk to monitor refrigerated containers in transit. The partnership later developed further to include safety, operational efficiency, and cargo care. This demonstrates how digital technology can be used not only to transport goods, but also to collect information and support decisions throughout the supply chain. Real-time monitoring of refrigerated containers 2026 The system enables approximately 300,000 refrigerated containers to transmit important information. This includes the temperature inside the container, its location, and the status of its power supply. Sensors collect the data from the physical container and its refrigeration equipment. Mobile and satellite communications transmit the information while the container is being transported. Satellite communication is particularly useful when containers are on vessels or in locations where ordinary mobile network coverage may be limited. The information is sent to cloud-based systems and analysed in the central office. Cloud computing enables data from many containers to be collected and made available for analysis. Employees can monitor cargo condition and location, identify unusual readings, and respond to potential issues. Maersk’s current Remote Container Management system also provides information such as humidity, atmosphere, GPS location, off-power periods, and outside temperature. Customers can access this information through Maersk’s Captain Peter visibility platform. This technology is an example of the Internet of Things (IoT). IoT refers to physical objects that contain sensors and communication capabilities, allowing them to collect and exchange data. In this case, the refrigerated container becomes a connected object. It provides information about its condition and location as it moves through a global supply chain. Cargo care and operations Cargo care and operations are crucial elements to be monitored at Maersk. The company identifies temperature problems before cargo is delivered, enabling real-time action. If the temperature moves outside the required range, employees can investigate the refrigeration unit, check the power connection, or arrange an inspection at the next port. Early intervention may reduce spoiled produce and protect the quality of the remaining cargo. The system also helps Maersk determine whether a problem was caused by equipment, power supply, handling, or delay. Location data improves visibility across the supply chain. Maersk and its customers can receive better information about a container's location and whether it is progressing as planned. This can support transport planning, port coordination, customer communication, and delivery expectations. When many containers are travelling through different ports and countries, centralised information can help managers identify delays and prioritise urgent situations Maersk reports that its monitoring data can support proactive decisions about cargo quality. For example, if one container of fruit shows a higher temperature than similar containers, the importer may decide to sell that shipment first to protect the remaining shelf life of the remaining containers. Monitoring data can also help investigate cargo claims by showing whether unsuitable conditions occur during the ocean journey or later in the supply chain. Power-supply information is also important. A refrigerated container cannot maintain the required conditions if its equipment is not receiving power. An alert about a power interruption can allow staff to investigate before the temperature rises significantly. Information from the fleet may also help Maersk identify recurring equipment failures, support preventative maintenance, and improve fleet efficiency. Challenges and limitations Like all organisations, Maersk experienced some challenges and limitations. The implementation of an IoT system across a large international fleet required significant investment. Also, Maersk needed to acquire and maintain sensors, communication equipment, cloud services, and monitoring systems for operational efficiency. In addition, employees require training to operate the systems well. Furthermore, the technology needed to be integrated with existing logistics systems to ensure that information reaches the correct decision-maker in time. Moreover, communication networks created limitations for Maersk. In some instances, containers pass through areas with weak coverage, causing information to be delayed or temporarily unavailable. Additionally, sensors sometimes produce inaccurate readings or fail, and a power interruption affects both refrigeration and monitoring equipment, creating false alerts that waste staff time. In contrast, missed alerts may allow cargo damage to continue. Cybersecurity is another concern for Maersk. Connected containers and cloud systems create additional points that unauthorised users target. Maersk, therefore, must have secure communication, access controls, monitoring, and clear response procedures. The company also manages a large volume of information generated by approximately 300,000 containers. If employees receive too many alerts, they may struggle to distinguish urgent problems from minor variations. The way forward Maersk’s partnership with Ericsson demonstrates how IoT strengthen a global supply chain by connecting cargo, communication networks, cloud systems, and operational staff. Real 2026 - time monitoring helps protect perishable goods, respond to equipment and power problems, improve delivery visibility, and support safety and efficiency across the fleet. Technology alone cannot guarantee successful supply-chain performance. Maersk must maintain sensors and communication systems, train employees, protect data, and establish procedures for prioritising alerts. It should also assess whether reduced spoilage, improved planning, and better customer service justify the costs. Continued investment is likely to be valuable because the fleet is large and the consequences of damaged fresh produce can be significant. The most effective approach is to combine IoT monitoring with skilled employees, reliable maintenance, strong cybersecurity, and cooperation among Maersk, Ericsson, ports, vessels, suppliers, and customers. Sources Maersk. 2022. Cold chain powered by data. 17 June 2022. Maersk [Online]. Available from: https://www.maersk.com/news/articles/2022/06/17/cold-chain-powered-by-data [Accessed: 14 September 2026] Maersk. n.d. Captain Peter: Services. Maersk [Online]. Available from: https://www.maersk.com/digital-services/captainpeter/services [Accessed: 12 September 2026] Gorey, C. 2016. Reefer delight: How Maersk Line uses IoT on the open seas. 2 November 2016. Silicon Republic [Online]. Available from: https://www.siliconrepublic.com/machines/maersk-line-catja-hjorth-rasmussen [Accessed: 12 September 2026] ILIR. 2017. The Internet of Things and Maersk’s Gains from Digitisation. 15 November 2017. Harvard Business School Digital Initiative [Online]. Available from: https://aiinstitute.hbs.edu/platform-rctom/submission/the-internet-of-things-andmaersks-gains-from-digitization/ [Accessed: 12 September 2026] South African Qualifications Authority. 2012. Level Descriptors for the South African National Qualifications Framework. 3 March 2012. SAQA [Online]. Available from: https://saqa.org.za/level-descriptors-for-the-south-african-national Having read the case study about Maersk Line: Using the Internet of Things to Improve Supply-Chain Visibility, and answered the questions that follow: [Turn to the next page for the examination questions] CONFIDENTIAL Page 9 of 11 MNP3702 October/November 2026 6 TAKE-HOME EXAMINATION QUESTIONS QUESTION 1 30 MARKS Using the Supply-Chain Integration Model as a reference, write a report answering questions 1.1 to 1.3. Your answers should be based on information from the prescribed book and evidence from the case study only. Remember to use your own words (do not copy and paste answers, even from the case study and the prescribed book). 1.1 Critically assess the extent to which Maersk has successfully integrated each of the eight elements of the Supply Chain Integration Model acro