1. business and industrial
2. logistics
3. air freight

How to Create Values to Customers with
Supply Chain Management &
Career Development in Logistics Industry
Martin Holme, Hong Kong, 6th March 2013
Agenda
About Damco
How Damco Creates Value to Customers with
Supply Chain Management
Career Development Opportunities in Damco
Q&A
Maersk Group
•
•
•
•
•
The Maersk
Group
Container
Shipping
Maersk Line
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April 17, 2013
Tankers,
Offshore
Damco
Terminals
MCC
Transport
Oil & Gas
Safmarine
Headquarterd in Copenhagen, Denmark
Established 1904
117,000+ employees
130 countries
2012 Revenue: US$ 59b
Retail
Technology
Maersk
Container
Industry
Damco Overview
A Top 10 global logistics service provider
•
Established in 1977
•
Headquartered in Hague, The Netherlands
•
Over 11,300 employees in 90 countries
•
Over 300 offices, fully owned by Damco
•
Managed over 2.7 million TEU of ocean freight and supply
chain management volumes in 2012
•
USD 3.2+ billion turnover
•
Lift 210,000 tons of airfreight
Our Core Competency
Ocean freight
Air freight
Value added services
“We help our customers
exploit new opportunities in
the global market place by
streamlining and optimising
their supply chain”
Supply chain solutions
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Supply chain development
Warehousing and distribution
Damco Global Network
We are everywhere you do business
Damco provides integrated supply chain solutions through our global presence and
infrastructure including fast-growing, emerging markets such as Africa, India and Asia
North America
2 countries
Locations: 11
4
Europe
46 countries
Locations: 120
People: 1,100+
People: 2,500+
Latin America
Middle East & Africa
Asia
13 countries
Locations: 63
People: 5,000+
Indian Subcontinent
15 countries
38 countries
Locations: 36
Locations: 63
Locations: 22
4 countries
People: 900+
People: 800+
People: 900+
Damco North Asia
Quick Facts 2012
3,306 employees
30 offices
Supply chain: 34.5 million CBM
Ocean freight: 350,000 TEU
Air freight: 174,000 Tons
Urumqi
Beijing
Xinjiang
Dalian
Inner Mongolia
Gansu
Tianjin
Hebei
Ningxia
`
Shanxi
Qinghai
Yokohama
Shandong
Osaka
Jiangsu
Xi’an
Shanghai
Sichuan
Chengdu
Wuhan
Hubei
Chongqing
Nanchang
Changsha
Guizhou
Legend:
Damco Office
Yunnan
Hunan
Zhejiang Ningbo
Fuzhou
Jiangxi
Fujian
Guangdong
Guangxi
Xiamen
Guangzhou
Shenzhen
Gateway
Hong Kong
Warehouse
Hainan
April 17, 2013
Busan
Nanjing
Henan An Hui
Shaanxi
Tibet
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Tokyo
Seoul
Qingdao
Taipei
Da-Yuan
Kaohsiung
Damco in Hong Kong
Established in 1978, 3 Offices, 300+ Employees
10 Warehouses, Over 800,000 sq feet
Fat Kee Consolidation
Kowloon Bay Warehouse
Tuen Mun Warehouse
Damco North Asia
Regional HQ
(Kowloon Bay)
Tsing Yi Warehouse
Yau Tong Warehouse
(Label Centre)
Pacific Network Office
(Cheung Sha Wan)
Damco Hong Kong
Branch (MTL)
Sun Hing Consolidation
West Island Warehouse
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Sanform Warehouse
ATL Logistics Centre
Agenda
About Damco
How Damco Creates Value to Customers with
Supply Chain Management
Career Development Opportunities in Damco
Q&A
Supply Chain Management
Damco aims to provide Clients with the financial, commercial and operational benefits of a well
engineered end to end supply chain solution
P.O.
Management
Vendor
Management
Booking
Coordination
Documents
Management
Import
Coordination
KPI
Reporting
End-to-end global supply chain management & visibility
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April 17, 2013
Case study: International Retailer
Reduce logistics costs without interrupting operations
Projected full year savings of USD 1.8 million
SUPPLY CHAIN
CHALLENGES
 Excessive use of 20’
containers due to
numerous FOB points and
a tradition of using CY
factory loads
PRACTICAL
SOLUTIONS
 FOB Point Consolidation
to maximize cheaper 40’
container
 Heavy reliance on lessthan-container load (LCL)
shipments
 LCL conversion to more
cost effective multicountry consolidation
 Large order quantities
without consideration of
logistical implications,
resulting in high
inventory levels
 Smaller more frequent
order sizes reducing
inventory levels
REALIZED
SAVINGS
 20’ volume ratio down
to below 30% resulting
in realized savings of
USD 0.6 million
 LCL volumes converted
to Multi-Country
Consolidation resulting is
realized savings of USD
0.2 million.
Our Customers
Our top 15 customers have been with us for more than 18 years
Most Recent
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April 17, 2013
5 years +
10 years +
20 years +
Freight Forwarding Services

IATA certified airfreight agent
with in-house operations

One of the world’s leading
freight forwarders

Extensive network of transport
providers

Direct relationships with major
airlines

Work with 20+ global carriers
within our network of over
10,000 corridors

Multiple modes of transport:

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Space and rate agreements
with carriers/co-loaders to offer
maximum flexibility

Door-to-Door service capability
with global network
Cargo visibility with Global
Track & Trace System (Star
Track)
Experienced staff with owned
customs clearance operation
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Global air services
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Time definite
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Express airfreight

Consolidated airfreight
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Service offerings:

Full container load (FCL)
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Less than container load
(LCL)

Multi-country
consolidation (MCC)
services
Competitive pricing with
economies of scale and globally
coordinated carrier
procurement
Multi-tier service options
delivering speed and cost


Road via various vehicle
types such as box /
container trucks, etc

Rail

Barge
Inland transportation

Full Truck Load (FTL)

Less than Truck Load
(LTL)

Constant monitoring & quality
assurance

One point of contact for
transport management
including booking, utilisation,
track & trace, and reporting
Value Added Services
Quality Control
Slip Sheet
Pick & Pack
Barcode scanning
GOH
Value Creation Through SCD
Value creation through Supply Chain Solution Design & Optimization
● What do we do?
●
End-to-End Supply Chain strategy & design, distribution network strategy &
design, warehouse design, Green Logistics solutions
Agenda
About Damco
How Damco Creates Value to Customers with
Supply Chain Management
Career Development Opportunities in Damco
Q&A
The Leadership Pipeline
Passage 6
Passage 5
Passage 4
Passage 3
Passage 2
Passage 1
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Role Transitions
Each of passages represents a change in organizational position– a
different level and complexity of leadership– where a significant turn has
to be made
Each passage requires that people acquire a new way of managing and
leading and leave the old ways behind in the following three areas
Skill Requirements
New capabilities required to execute new responsibilities
Time applications
New time frames that govern how one works
Work values
What people believe is important and so becomes the
focus of their effort
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Transition from Individual Contributor
to a Leader of Others/Leaders
Skills
Individual Contributor
Leader of Others / Leaders
● Technical or Professional Proficiency
● Planning- Projects, budget, workforce
● Team Play
● Job Design
● Relationship building for personal benefits
● Selection
● Using company tools, processes, &
procedures
● Delegation
● Performance Monitoring
● Coaching and feedback
● Performance Measurement
● Rewards and motivation
● Communication and climate setting
● Relationship building up, down and sideways for the unit’s
benefit
Work
Time
Values Application
● Acquisition of resources
● Daily discipline-arrival, departure
● Annual Planning-Budget, Projects
● Meet personal due dates for projects
● Set priorities for unit and team
● Available for subordinates-both at your and their request
● Communication with other units, e.g. customers, suppliers
● Getting results through Personal proficiency
● Getting results through others
● High-quality technical or professional work
● Success of direct reports
● Accept the company’s values
● Managerial work and disciplines
● Success of unit
● Managerial work and disciplines
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We will present you with 3 real life scenarios a leader
in Damco faces when coming to the office.
You will be given some time to reflect and will ask you
to make a call.
Decision 1: Business or Values?
Imagine that you are Karen, responsible
for a Key Account Management Team
holding KAM teams that are servicing all
the top 20 customers of Damco globally.
You have just changed the Head of a KAM
team for the #3 global account, and you
have done this in close co-operation with
the customer; with the intent of getting
the customers full buy-in and ensuring a
longer term fit.
After only a couple of weeks, the customer
raises a complaint about the person,
saying that this is not working – and that
she would prefer to see another person in
the role.
While knowing that one of the company
values is to give an employee a fair
opportunity to develop in a job, you also
wish to accommodate the needs and
requests of the customer.
What are you going to do?
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17 April 2013
Decision 2: Diversity or Short-term Result
You are working as HR Business Partner for the
Commercial function. Your organizational
priorities for this year (as agreed with the Sales
Manager) is to strengthen the sales team, and
increase diversity in the composition of the
team (male dominated environment).
There is a vacancy for a Key Account Manager
for one of the most important customers for
the organization.
The position has been opened for 90 days
(benchmarked desirable time to fill is 45 days).
The front line manager is getting desperate and
is starting to go straight to your manager putting
pressure for some results.
You have two final candidates:
Candidate 1: good interview, average
psychometric tools, female, strong experience
with similar accounts
Candidate 2: good interview, excellent
psychometric tools, male, strong and successful
experience with that same account in the
competition.
Who would you hire?
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17 April 2013
Decision 3: Standardization (Cost) or
Flexibility (Customer)
Imagine that you are Head of Contract
Logistics in Damco China supporting a
global customer to manage their
warehouse co-operation with the intent of
getting the customers full buy-in. It’s
business direction to build the freight
forwarding business around contract
logistics.
The customer service team received
numerous orders from the customer to
load various items ranged from trays to
copying machines into serveral containers
for oversea shipment to the different
locations of USA.
While knowing that consolidating the
same items in the same container, you
may save the workforce in packing and
freight cost in the process. However, the
customer requires to deliver a wide range
of items to various locations. You
understand from your team leaders that
you don’t have sufficient workforce pack
various items into a single container to
meet the deadline to manage the variety.
What are you going to do?
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Being a DAMCO
Leader…
As a global company, we have a responsibility to lead.
We need to set new standards for business performance.
We have a clear environmental and social responsibility.
Are you ready to assume this responsibility?
Think Critically
Manage ambiguity
Serve our Customers
Protect our Shareholders
Live our values
Agenda
About Damco
How Damco Creates Value to Customers with
Supply Chain Management
Career Development Opportunities in Damco
Q&A
THANK YOU!
APPENDIX
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17 April 2013
Our Service Offerings
Vendor
CFS
DC
Store
Damco customised end to end solutions
Freight Forwarding
Services
Supply Chain
Management
Warehousing and
Distribution
Supply Chain
Development
Ocean Freight
Co-loading
Air Freight
Trucking
Customs Clearance
(FCL)
(LCL)
(AIR)
(VAS)
(VAS)
Our Service Offerings
Vendor
CFS
DC
Store
Damco customised end to end solutions
Freight Forwarding
Services
PO
management
Supply Chain
Management
Vendor
management
Warehousing and
Distribution
Consolidation
& Export
Coordination
Carrier
Management
Supply Chain
Development
Documentation
Management
Our Service Offerings
Vendor
CFS
DC
Store
Damco customised end to end solutions
Freight Forwarding
Services
Import
Distribution
Centers (IDC)
Supply Chain
Management
Export
Distribution
Centers (EDC)
Warehousing and
Distribution
Multi-Country
Consolidation
(MCC)
Origin
Consolidation
(CFS)
Supply Chain
Development
China
Distribution
Our Service Offerings
Vendor
CFS
DC
Store
Damco customised end to end solutions
Freight Forwarding
Services
Green
Logistics
Supply Chain
Management
Center of
Gravity
Warehousing and
Distribution
Warehousing &
Distribution
Load
Optimization
Supply Chain
Development
Port
Migration
Control Tower
Predictability through strong process execution with proven exception management track record
Origin export coordination
 Vendor management
 PO management
 Exception management
 Carrier Booking
 Export custom clearance
 Milestone updating
Carrier management
 Carrier communication
 Allocation management
 EDI with carriers
 Carrier performance measuring
(KPI)
 Documentation management
Destination import
coordination
Control Tower and information
management
 Cargo receiving and
dispatch
 Cargo status tracking
 Information management
 Periodic reporting
 KPI control point
 Import custom clearance
 Invoice audit and consolidation
 Milestone updating
 Single logistics contact point
Through Single Sign on – My Damco
Business Process and Systems Demo
Reporting
E-booking for vendors
Exception Management
Shipment milestones can
be visible on Damco
Reporting system
(myDamco.com)
Open to all suppliers that
they can access to his
order list then book and
get the confirmation
Damco can map all
exceptions on the portal
and generate automatic
notification emails
Electronic Standard
Operating Procedure
Platform sharing guiding
operation guidelines and
milestones
Electronic Documents
Vendor upload all
documents to eDOC portal
for customs clearance at
destination
Damco Leaders as Change Agents
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Strategies Execution
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People Development
•
Proactively involved in Damco
people development programs
as a facilitator, coach, mentor
and buddy
•
Committed in talent
engagement and management
Sustainability
Strategies
Execution
Sustainability
•
•
33
Follow the Roadmap and
develop initiatives to execute
Damco strategies to excel the
business, develop talents and
drive operational excellence
Proactively driving sustainability
through building a network
business, sustainable growth,
cost management, productivity
and leadership
Taking initiatives to propagate
Damco Brand in the region
April 17, 2013
People
Development
Win-Win in Career and Organization Development
Career Paths are Sequencess of Opportunities, Choices and Trade-off
Talents
For the business
Career ‘BEST’ Role
•Skills
•Abilities
Organizational
Needs
Passions
‘Stretch’ Roles
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17 April 2013