Maersk has signed a strategic agreement with Microsoft Corp. to modernize supply chain management and global trade.

Under the agreement, Microsoft will be the preferred cloud partner of Maerk’s digital transformation and will support its assets such as carrier performance, equipment utilization and supplier performance. The cloud solution will improve operational performance and visibility, increase predictability and improve customer service. Maersk will use Microsoft Azure to power its app store and help fuel innovations.

Maersk estimates that the project will help save tens of millions of dollars each year.

“Our aim is to simplify and enhance visibility in supply chains by providing a seamless end-to-end digital experience for our customers,” said Ibrahim Gokcen [left], chief digital officer of Maersk. “Microsoft Azure is the cornerstone in our digital strategy, providing one common platform shared by all our transport and logistics businesses. On Azure, we are also creating a marketplace of apps and digital products that improve operations and drive better business decisions.”

The Microsoft cloud will enable Maersk to use the data generated from its business activities to tactical and strategic decision-making, improve operational efficiency and create new revenue streams.

“The future of Maersk is very exciting,” said Judson Althoff [right], executive vice president of worldwide commercial business at Microsoft. “As a forward-thinking company, it is digitally transforming its massive logistics network to bring even greater value to its customers. We are tremendously honoured that Maersk has selected Microsoft as its preferred cloud partner for its most critical systems and applications.”

Maersk’s supply chain solutions subsidiary Damco recently launched several products that are also powered by Microsoft Azure.