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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
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