Control logistics costsas you extend your supply chain  Jeremy Haycock, President Damco USA
Your SpeakerJeremy T. HaycockPresident, Damco North Americasince 2008                                 26 years with the A....
Who is DamcoGlobal logistics. Individual solutions.   Global leader in          Strong delivery capabilityforwarding and ...
Our global footprintWe are a Truly Global Logistics Provider                                * Graphic does not illustrate ...
Global Supply Chains, higher cost ?                                                  How to get to C ?                    ...
Information and cost containment3pl’s are uniquely positioned to access supply chain information         Most 3 pl’s have ...
Supply chain operations, structures and strategiesUnderstanding, analyzing, benchmarkingand improving your supply chain’s:...
Real life Example I:Reduction of working capital Benchmarking Cash-to-Cash cycle                                      Inve...
Real life Example II:Supply Chain Acceleration              Shortening the supply chain                                   ...
Real life Example III:Utilization improvement      Industry benchmarking                                          Canadia...
Summary                           How to get to C ?                        • Does the 3PL have the right                  ...
T H A N KY O U   &    www.damco.com                12
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Jeremy Haycock from Damco; ‘Globalize the Supply Chain: Establish a truly globalized end-to-end supply chain, achieve inventory optimization, and look behind M&A activity in the logistics provider market’

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Jeremy Haycock from Damco; ‘Globalize the Supply Chain: Establish a truly globalized end-to-end supply chain, achieve inventory optimization, and look behind M&A activity in the logistics provider market’

  1. 1. Control logistics costsas you extend your supply chain Jeremy Haycock, President Damco USA
  2. 2. Your SpeakerJeremy T. HaycockPresident, Damco North Americasince 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 2
  3. 3. Who is DamcoGlobal logistics. Individual solutions. Global leader in  Strong delivery capabilityforwarding and supply  Genuine innovation capability chain solutions  Capabilities at origins  Lowest churn rates in industry Collaboration with carriers and thought  Global reach, local leaders relationships  Unique systems & visibility solutions Part of A.P Møller – Maersk Group  Passion & commitment to our customers 3
  4. 4. Our global footprintWe are a Truly Global Logistics Provider * Graphic does not illustrate exact location, mode, corridor or lane 4
  5. 5. Global Supply Chains, higher cost ? How to get to C ? B Logistics costs per unit A Visibility C Control Innovation Quality Supply chain length Efficiency Longer supply chains can be cheaper supply chains 5
  6. 6. Information and cost containment3pl’s are uniquely positioned to access supply chain information Most 3 pl’s have it Good 3 pl’s use it to your benefitand drive sustainable improvement 6
  7. 7. Supply chain operations, structures and strategiesUnderstanding, analyzing, benchmarkingand improving your supply chain’s: Operational performance Financial performance Structure Strategy..and execute accordingly Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)
  8. 8. Real life Example I:Reduction of working capital Benchmarking Cash-to-Cash cycle Inventory analysis Over- stockin g Stock- outs 10 Cash-cycle time 124 days days USD 0.5 mill. in savings identified for one SKU Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)
  9. 9. Real life Example II:Supply Chain Acceleration Shortening the supply chain  DC–bypass (DC-BP) and direct-to-store Cycle time Total cost solutions allow effect effect companies to $ accelerate theirT supply chain and reduce warehousing Inventory Inventory and inventory needs  US retailer saved USD 3 mill. through Time to store Transport Transport store ready pallets Time to built in china and Store transloaded into 53’ DC DC-BP DC DC-BP trailers on USWC Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)
  10. 10. Real life Example III:Utilization improvement Industry benchmarking  Canadian retailer saved USD 1.5 mill. through 20DRY 40DRY better container 28 58 utilization (15% less 56 26 containers) 54 24 52.9 23.8 52  This was achieved by 22 50 optimising the 20 48 reordering process and 18 46 promoting the use of CBM CBM consolidation at origin Industry best in class Industry median  Further potential cost Industry bottom 25% reductions by using Company X (2008) 40HC and 45HC with increased consolidation Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)
  11. 11. Summary How to get to C ? • Does the 3PL have the right tools? C • What experience do they have relative to what you need/want? • What are their innovation B capabilities?Logistics costs per unit • Do they have their own people on the ground in the locations A you need them to be? • Is the solution one size fits all, C off-the-shelf or is it tailored to your needs? Engage your 3PL actively in supply chain improvement; operationally, tactically and strategically. Supply chain length Property of Damco - Reproduction and Redistribution Solely by Written Consent of Author(s)
  12. 12. T H A N KY O U & www.damco.com 12

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