Thursday, November 22, 2012

Technology Announcement: Damco Unveils Missing Link to Supply Chains

 22 November 2012 – In recognition of the need with supply chain managers for cutting costs and securing a constant high degree of delivery performance, Damco now offers improved capabilities to optimize the entire end-to-end supply chain from a cost, delivery time, capacity and carbon perspective. Damco’s global team of 50 supply chain developers have done more than 200 projects so far during 2012 identifying more than USD 160 mill. in value to our customers. Based on new technology Damco will provide customers with a stronger foundation for making decisions about:

o   How much inventory is needed to meet desired service levels?
o   Where should inventory be kept? (at origin, in transit, at destination)
o   How many warehouses/DCs are needed and where to locate same?
o   When to phase in/phase out warehouse capacity during the next e.g. 5 years?
o   Which transportation mode, container and truck type is optimal from a cost, service and carbon perspective for the in- as well as the outbound supply chain?

“A more quick, thorough and holistic approach to supply chain design and optimization is key to operate in a world of constant change”, commented Erling Johns Nielsen, Global Head of Supply Chain Development at Damco.

“You can have the best supply chain concept in the world. However, without being able to adapt to change while having access to experienced supply chain professionals located close to your supplier and customer base, who can implement and execute the change on a daily basis, you will not reap the full benefits,” Erling Johns Nielsen says.

Earlier in the year, Damco launched the revolutionary Damco Dynamic Flow ControlTM, which tackles the hassle of dealing with constant changes on the demand and supply side without adding cost, time, and complexity. The new optimisation tool is the strategy part of Damco Dynamic Flow ControlTM.

A prerequisite for supply chain excellence is that you can evaluate supply chain performance, simulate your different options very quickly while understanding implications to cost, service levels, lead time and capacity and translate your findings into specific actions on a day to day level.

“These change projects used to take several months”, says Erling Johns Nielsen. New tools combined with Damco Dynamic Flow ControlTM ensures that it takes much less time to simulate the impact of the change, design new business rules and subsequently roll out the solution across all stakeholders involved in the supply chain. This is really a missing link in many supply chains”, he concludes.

As part of the solution, Damco has signed a contract with Llamasoft, a world class provider of Network Design and Optimization software, which adds “Supply Chain Guru” to Damco’s array of tools.

About Damco:

Damco is one of the world’s leading third party logistics providers specializing in customized freight forwarding and supply chain solutions. The company has 10,800 employees in over 300 offices across 90 countries and representation in a further 30 countries. In 2011, the company had a net turnover of USD 2.8 billion, managed more than 2.5 million TEU of ocean freight and supply chain management volumes and air freighted more than 110,000 tons. Damco is part of the A.P. Moller - Maersk Group.