Case study : Damco - Cleaner environment-friendly logistic service

Maersk Logistics/Damco is an independent business activity within the A.P. Moller - Maersk Group. Recently AP Moller-Maersk Group has merged its supply chain management activities branded as Maersk Logistics and its freight forwarding activities branded as Damco, under the single brand name ‘Damco’.

Combined, Maersk Logistics and Damco offer a broad range of supply chain management and freight forwarding services to customers all over the world.

Maersk Logistics and Damco have 10,500 colleagues in 272 offices, covering over 93 countries in Africa, Asia, North America, Europe, Middle East, and Latin America.

In 2008, the combined business had a net turn-over of USD 2.8 billion, shipped more than half a million TEUs ocean freight, air freighted over 60,000 tonnes, and handled over 50 million CBMs for its supply chain management customers.

Damco in India has 17 own offices and employs over 300 full time colleagues as direct employees. In India, Damco began operations as Mercantile in 1992 offering supply chain management and consolidation services.

case study

Nike, an international leading sportsware brand, sees Corporate Social Responsibility (CSR) as a catalyst for growth and innovation - and the company is striving to become a frontrunner in the CSR field. As part of this, and amid growing concerns about the environment, Nike’s goal is to reduce the global carbon footprint of its logistics by 30 per cent by 2020. As a first step, Nike Europe needed to get a detailed overview of the emissions arising from its logistics activities - and that’s where Damco came in.

solution provided

Damco used the SupplyChain CarbonDashboard to review the emissions from Nike Europe’s supply chain - and, in a 12-month pilot, the project provided quarterly reports on a part of the supply chain.  The SupplyChain CarbonDashboard is a graphical representation that allows you to keep track of your carbon footprint throughout your supply chain. The reports measure the carbon footprint of all inbound and outbound transportation via Nike’s European warehouse, including ocean transport, aviation, trucking, rail, barge, port operations and consolidation. Nike also wanted the reports to display specific details, so Damco’s project team developed the SupplyChain CarbonDashboard, which enables Nike to see its total carbon footprint, Carbon dioxide emissions per activity, Carbon dioxide emissions per product group and Carbon dioxide emissions per trade lane.

Benifits

With the quarterly reports, Nike is now working strategically to reduce its carbon footprint. The reports give the Nike team a detailed understanding of what causes carbon emissions, and enables them to closely track the effects of any new reduction initiatives. 

“The overall economic environment would once again be supportive of investments and this will clearly be applicable to retail industry in India as well. Hence, we believe that we will see a revival in growth plans by many Indian retail groups in 2010. We also expect many global retailers to finalise their India strategy in 2010 through joint ventures with local partners or otherwise. This will result in an overall increase of investments in the organised retail industry in India that may lead to the creation of new players, new formats and eventually more choice for the Indian consumers.”

Morten Find Laerkholm, Chief Operating Officer, Damco, South Asia