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Business View Australia - November-December 2015
China, the company has established its
presence and offers holistic solutions to
its clients. Previously many companies
had large warehouses in Australia
where their distribution, tagging and
sorting activity was carried out.
Now a great deal of this is being
done closer to the point of origin in
the factories in Asia where labour is
cheaper and from where it is easier
to supply a global logistics operation.
Damco has positioned itself to meet
this changing environment and its
proprietary technology and processes
enable it to offer customers the most
efficient solutions.
Kelvin Mason, Chief Commercial
Officer – Damco, for Australia and
New Zealand says, “We are basically
an integral part of the customer’s
business. If they have no goods arriving
into their retail stores then they have
nothing to sell. So the supply chain is
probably the second-most important
part of their business after their
merchandise.
“When our customers place orders
with their factories and vendors
throughout the world they also send
the orders to Damco. We then manage
the factories and vendors to ensure
that they comply with requirements
for delivery. We can manage complex
supply chains with up to a thousand
vendors all throughout the globe.
“Our customers can make decisions
during the supply chain process. So for
example, if there are orders from one
factory which require to be changed for
delivery from Melbourne to Sydney, we
can arrange that midstream through
our systems. If they want any value-
adds such as labelling or tagging, we
can do that also.”
Airfreight
Damco is acutely aware of the fact
that airfreight is an expensive option
that should be used only if it is really
necessary. There are many instances
when a client holds the view that if a
consignment is to reach its destination
by a certain date, the only choice
available to it is to despatch it by air
cargo.
But Damco’s experience in managing
supply chains can often devise a mix
of air and sea transportation that
provides a cost-effective alternative.
The company has an extensive network
of hubs that enables it to plan this
effectively.
A number of airline carriers have long-
standing arrangements with Damco.
The company’s non-asset based
operating style, where it does not own