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BizTrends 2018

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Damco offers new network optimisation tool

Damco has enhanced its end-to-end supply chain management platform to provide increased cost savings to customers, while decreasing carbon emissions, with a the launch of a new network optimisation tool.
In recognition of the need with supply chain managers for cutting costs and securing a constant high degree of delivery performance, Damco now offers improved capabilities to optimise the entire end-to-end supply chain from a cost, delivery time, capacity and carbon perspective. Damco's global team of 50 supply chain developers has done more than 200 projects so far during 2012 identifying more than USD 160 million in value to its customers. Based on new technology, Damco will provide customers with a stronger foundation for making decisions about:

  • How much inventory is needed to meet desired service levels?
  • Where should inventory be kept? (At origin, in transit, at destination?)
  • How many warehouses/DCs are needed and where to locate same?
  • When to phase in/phase out warehouse capacity during the next, for example, five years?
  • Which transportation mode, container and truck type is optimal from a cost, service and carbon perspective for the in- as well as the outbound supply chain?

"A more quick, thorough and holistic approach to supply chain design and optimisation is the key to operate in a world of constant change," commented Erling Johns Nielsen, global head of supply chain development of Damco.

"You can have the best supply chain concept in the world, however, without being able to adapt to change while having access to experienced supply chain professionals located close to your supplier and customer base, who can implement and execute the change on a daily basis, you will not reap the full benefits," Nielsen said.

Evaluate supply chain performance

Earlier in the year, Damco launched the Damco Dynamic Flow ControlTM, which tackles the hassle of dealing with constant changes on the demand and supply side without adding cost, time, and complexity. The new optimisation tool is the strategy part of Damco Dynamic Flow ControlTM.

A prerequisite for supply chain excellence is that you can evaluate supply chain performance, simulate your different options very quickly while understanding implications to cost, service levels, lead time and capacity, and translate your findings into specific actions on a day-to-day level.

"These change projects used to take several months", said Nielsen.

New tools, combined with Damco Dynamic Flow ControlTM, ensure that it takes much less time to simulate the impact of the change, design new business rules and, subsequently, roll out the solution across all stakeholders involved in the supply chain. This is really a missing link in many supply chains", he concluded.

As part of the solution, Damco has signed a contract with Llamasoft, a provider of network design and optimisation software, which adds "Supply Chain Guru" to Damco's array of tools.