1. 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
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3. Who is Damco
Global logistics. Individual solutions.
Global leader in  Strong delivery capability
forwarding 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
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4. Our global footprint
We are a Truly Global Logistics Provider
* Graphic does not illustrate exact location, mode, corridor or lane
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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
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6. Information and cost containment
3pl’s are uniquely positioned to access supply chain information
Most 3 pl’s have it
Good 3 pl’s use it
to your benefit
and drive sustainable improvement
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7. Supply chain
operations, structures and strategies
Understanding, analyzing, benchmarking
and 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. 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. 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 their
T
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. 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. 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. T H A N K
Y O U
&
www.damco.com
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