Control logistics costs as you extend your supply chain

Jeremy Haycock, President Damco USA

2

Your Speaker

Jeremy T. Haycock

President, Damco North America since 2008

26 years with the A.P Møller – Maersk Group in Italy, Denmark, Japan, Singapore, South Korea, Sri Lanka, Sweden, the United Kingdom and the United States

Based in Madison, New Jersey

3

Who is Damco

Collaboration with carriers and thought

leaders

Part of A.P Møller – Maersk Group

Global leader in forwarding and supply

chain solutions

Global logistics. Individual solutions.

Strong delivery capability

Genuine innovation capability

Capabilities at origins

Lowest churn rates in industry

Global reach, local relationships

Unique systems & visibility solutions

Passion & commitment to our customers

4

Our global footprint

We are a Truly Global Logistics Provider

* Graphic does not illustrate exact location, mode, corridor or lane

5

Global Supply Chains, higher cost ?

Logi

stic

s co

sts

per

unit

Supply chain length

C

How to get to ?

Visibility

Innovation

Control

Quality

Longer supply chains can be cheaper supply chains

A

B C

Efficiency

6

Information and cost containment

Most 3 pl’s have it

to your benefit

Good 3 pl’s use it

and drive sustainable improvement

3pl’s are uniquely positioned to access supply chain information

Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)

Supply chain operations, structures and strategies

Understanding, analyzing, benchmarking and improving your supply chain’s:

..and execute accordingly

Operational performance

Financial performance

Structure

Strategy

Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)

Cash-cycle time 10

days 124 days

Real life Example I: Reduction of working capital

Benchmarking Cash-to-Cash cycle

Over-stockin

g

Stock-outs

USD 0.5 mill. in savings identified for one SKU

Inventory analysis

Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)

Real life Example II: Supply Chain Acceleration

Cycle time effect

Total cost effect

DC–bypass (DC-BP) and direct-to-store solutions allow companies to accelerate their supply chain and reduce warehousing and inventory needs

US retailer saved USD 3 mill. through store ready pallets built in china and transloaded into 53’ trailers on USWC

Time to Store

Time to store

DC DC-BP

T

Transport

Inventory

Transport

Inventory

DC DC-BP

$

Shortening the supply chain

Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)

Industry best in class Industry median Industry bottom 25% Company X (2008)

Real life Example III: Utilization improvement

CBM CBM

58

46

48

50

52

54

56

28

18

20

22

24

26

23.8

20DRY 40DRY

52.9

Industry benchmarking Canadian retailer saved USD 1.5 mill. through better container utilization (15% less containers)

This was achieved by optimising the reordering process and promoting the use of consolidation at origin

Further potential cost reductions by using 40HC and 45HC with increased consolidation

Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)

A

B

Summary Lo

gist

ics

cost

s pe

r un

it

Supply chain length

C

How to get to ?

Engage your 3PL actively in supply chain improvement; operationally,

tactically and strategically.

C •Does the 3PL have the right tools?

•What experience do they have relative to what you need/want?

•What are their innovation capabilities?

•Do they have their own people on the ground in the locations you need them to be?

•Is the solution one size fits all, off-the-shelf or is it tailored to your needs?

C

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T H A N K Y O U

&

www.damco.com