Maersk Logistics, Damco make
it official
For some time, the once-sharp lines between transportation
and logistics, domestic and international, and third-party
logistics (3PL) and freight forwarding companies have been
blurring. Mergers in these areas have accelerated that trend
by melding complementary services into a one-stop shop
that meets customers’ increasingly diverse needs.
The latest example is the combination of Maersk
Logistics, a global 3PL, and Damco, an international freight
forwarder, under the Damco brand. The two had been operating side by side since Denmark’s A.P. Møller-Maersk
Group acquired Damco during its buyout of P&O Nedlloyd
in 2005.
The change, which took effect Sept. 7, is something of a
formality. Although they operated separately, Maersk
Logistics and Damco had been capitalizing on operational
efficiencies for nearly two years. In 2008, they became a single business unit, sharing management and back-office
functions. Both operate on the same core IT and financial
platforms, so customers are unlikely to encounter the technology gaps that have tripped up other logistics industry
mergers.
The re-branding reflects the need to offer customers a
wide range of services under a unified structure and identity, said Damco CEO Rolf Habben-Jansen in an interview.
“The businesses were always complementary, and we were
always explaining why we offered similar services but not
under one name. It was not a very compelling story.”
With 10,000 customers served through 272 offices in 93
countries, Damco now has a compelling story to tell,
Habben-Jansen believes. “Our presence in many growing,
emerging markets is very strong,” he said. “China, India,
Africa, and Latin America belong to our biggest organizations, so we have a lot of capabilities at the point of origin
for shipments to the United States and Europe. We have
been in many of those markets a long time, and we don’t
work with agents or third parties.”
Why choose the name Damco instead of the better-known Maersk Logistics? Precisely because of the strength of
the Maersk brand, it turns out. “It is very difficult to build
up a separate identity under the Maersk name because the
ship line is so strong,” Habben-Jansen said. Potential customers and airlines often mistakenly assumed that the car-rier-neutral 3PL and forwarder favored its parent company
or only handled maritime business, he noted.
Damco’s strategy for growth includes making the business
more independent from the shipping line, investing more in
air freight, and expanding capabilities in emerging markets,
Habben-Jansen said. “This is all part of the normal plan we
have been building on all along.”
—Toby Gooley
go figure …
7%
The percentage of the 1,500-plus executives in
a global survey who identified reconfiguring
their supply chains in response to the financial
and economic crisis as among their company’s
top priorities.
SOURCE: MCKINSEY & CO.
short takes
C.H. Robinson Worldwide has expanded its produce operations in Europe by establishing a produce sourcing company, C.H. Robinson Sourcing,
SAS, in Avignon, France. … Motorola is offering a
free publication for managers looking to cut fleet
operating costs and boost fleet productivity. The
publication, Quick Reference Guide to Improving
Fleet Management Using GPS, is available through
the Motorola Web site, www.motorola.com, or by
calling (800) 833-9788. … DSC Logistics has just
been accepted into the EPA’s Smart Way program,
a joint freight industry/government initiative to
reduce energy consumption and greenhouse gas
emissions. … Insight Network Transportation, a
company that provides transportation services for
the auto industry, has changed its name to
ShipCarsNow. … The Alternative Fuel Trade
Alliance has received a grant of up to $1.6 million
from the U.S. Department of Energy to raise public awareness and foster understanding of alternative fuels and advanced vehicle technologies.
… Visa Inc. and U.S. Bank have launched a joint
venture called Syncada that provides a business-to-business network for corporations to process
and track invoices, make and receive payments
around the world, and have their payables or
receivables financed through local and global
financial institutions. … Take Supply Chain (
formerly ClearOrbit) has acquired the product division of El Paso, Texas-based PSI Software. In
March, the two companies teamed up to provide
a global trade management solution to manufacturers that import and export large quantities of
goods across the United States, Canada, and
Mexico. The acquisition will allow them to expand
the solution’s focus beyond North American trade
to regulatory compliance worldwide.
