Supply Chain Management

About• Damco is one of the world’s leading third party

logistics providers specializing in customized freight forwarding and supply chain solutions.

• The company has 11,400 employees in more than 300 offices around the world and a global presence in about 100 countries.

• In 2013, Damco had a net turnover of USD 3.2 billion, managed 2.8 million TEU of ocean freight and supply chain management volumes and air freighted more than 225,000 tones.

• Damco is part of the Maersk Group.

About

• With having a spam of over 100 countries it provides better solutions to their clients.

• Provides visibility on-the-go to their clients through continuous communication and ERP based software (MODS)

• From making the order to the shipper, receiving the cargo, freight forwarding, clearing the customs, and till the product reach its final destination, DAMCO does it all.

Reasons for choosing • Damco is the world's leading provider of

freight forwarding and supply chain management services.

• Caters more than 100 countries with over a century experience.

• Provided timely accurate and viable information for our project.

Supply Chain Management

> The integration and management of the many different components and processes of our clients’ supply chains

> We manage entire supply chains from the time of planning and order placement of raw materials, all the way through to the arrival of the finished products at their final delivery point

> The integration and management of the many different components and processes of our clients’ supply chains

> We manage entire supply chains from the time of planning and order placement of raw materials, all the way through to the arrival of the finished products at their final delivery point

IMPORT AND EXPORT LOGISTICS SOLUTIONSSUPPLY CHAIN DEVELOPMENTWAREHOUSING & DISTRIBUTIONDAMCO REPORTING

IMPORT AND EXPORT LOGISTICS SOLUTIONSSUPPLY CHAIN DEVELOPMENTWAREHOUSING & DISTRIBUTIONDAMCO REPORTING

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Scope of SCM

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Managing completely the entire complex supply chain process

Destination connectivityIn-Transit Connectivity

Carrier Allocation

Origin Connectivity

Port

Hub

X-dock DC

Drayage

Port

Client systems

Damco Execution and Visibility solution

315 departure

Pick order

315 arrival

PO Upload

POD message

ASN confirmation

Receipt message

Event management through own and partners

applications

Event management through own and partners

applications

Event management through Inttra and direct

links to carriers

Technical infrastructure providing end to end transparency to milestones, status and performance of the supply chain and its partners

Factory Drayage

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CURRENT PROCESSES OF DAMCO

Freight Forwarding

• Airfreight• Ocean Freight• Sea-air Services• Multi-Modal• Project Cargo• Cargo Insurance

Supply Chain Visibility

• Visibility Management• Document Management• End-to-end supply chain visibility• Import & Export Flows• Milestone Exception Management• Online Bookings• Track & Trace

Customs & Trade Compliance

• Customs Clearance & Brokerage• Customs Inland Transportation Services• International Trade Document Management

Warehousing & Distribution

• Warehousing Services• Distribution Services• Cross-Docking and Transloading• Export and Import Distribution Centers• Re-packaging, Labeling & Kitting

Supply Chain Design

• Warehouse and Distribution Design• Business Process Management• Sustainable Logistics• Supply Chain Modeling• Packaging Optimization• Supply Chain Healthcheck• Stock-to-Serve

Supply Chain Management

• Load Optimization• Inventory Management and Control• Multi-Country Consolidation Programs• Origin Consolidation Management• Damco Dynamic Flow Control

Recent Initiatives:

• Shipper portals (Virtual Integration with Clients and Manufacturers)

• Vendor Compliance Program (Penalty for late provision of goods)

• Facilitation of vendor.• Rush order quota.

PROBLEMS

• Budgetary taxes i.e. HBL issuance.• Custom Regulations.• Dollar fluctuation.• Law and Order Situation.• Energy Crises.• Trucking Company Associations.• Marine Law for weather issues.

Managing the supply chain, Overcoming challenges

SuppliersSuppliers

DocumentsDocuments

TransportTransport

WarehouseWarehouse

CarrierCarrier

PortPort

• Quality adherence• Delivery timeliness• Regulatory compliance• Geographical spread

• Document management • Frequent changes in rules and

regulations• Multiple points of clearances

• Fragmented / unorganized transportation industry

• Manual processes• Safety issues and disaster

management • Inadequate rail capacity and

network

• Rates fluctuation• Space agreements• Schedule integrity• Equipment handling

• Congestion issues due to inadequate port capacity

• Infrastructure constraints such as seamless road-rail connectivity to ports

• Increased visibility of suppliers’ activities• Conduct supplier workshops• Supplier performance measurement programs

Challenges Damco’s solution

• Customized Trucking solution

• Active operations at three CFS locations involving activities such as consolidation, labeling, scanning

• Onsite customs

• Document dispatch by week• Document collection from suppliers• Document delay notice

• Different customized solution based upon carrier allocation by client

• Contracts with 12 global and regional carriers to ensure flexibility and alternative options at SAA level

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Did you opened the container?

If someone opens the container

AMU triggers

Cargo visibility on-line via Internet

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Reporting on-line

2204/18/23

KPI - Key Performance Indicators

KPI examples: – Leadtime (transit time)

– Utilization (use of paid space in containers)

– ”On time, in full”

– Vendors (shippers) KPI

– EDI (electronic data interchange)

– data quality

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Recommendations:●Regular process reviews identify waste and

ensure delivery of a cost efficient operating platform

●Supply chain control, visibility, and reliability●Act on performance issues●Prevent operational issues●Customer specific operating procedures●Ensure quick issue resolution●Methodically auctioning waste