Improving the customer experience…with competitive costs…
Rolf Habben-Jansen, CEO Damco, November 24 2009
Who is Damco?
A top 10 global provider of Forwarding and Supply Chain solutions, part of the AP Moller Maersk Group
More than 100 years experience
10,500 employees
2* Graphic does not illustrate exact location, mode, corridor or lane
~275 offices in ~100 countries
~3 bill USD company
Operates 1.3 Mill m2 warehouses
Lift 60,000 tons of air freight
Move 2,5 Mill TEU
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l1 slide confirmed ok by cco teamlbs002, 09/09/2009
The customer experience has many different aspects…
� Delivery capability
� Innovation capability
� Account Management
� Customer loyalty across
� Consistently above 97% performance on KPIs
� In 2008, 250 supply chain projects created 117 mill USD savings for our customers
� Servicing more than half of the Global Fortune 100 Companies through own
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� Customer loyalty across industries
� Coverage across all markets (incl the difficult ones)
� Systems and visibility solutions
� Passion for customers
Fortune 100 Companies through own offices in almost 100 Countries
� More than 97% retention with our top 150 customers over the last 3 years
� Well over half of our top 50 customers have been with us for more than 8 years
� 6.5 mill. EDI transactions/month; +500 partners; +1500 EDI maps; 1.2 mill. E-bookings & 14,000 shippers
Increasing efficiency, raising customer satisfaction and being innovative at the same time is critical
External
Efficiencies Innovation
Benchmark your performance and
Focus on the ´ease of doing business´
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External
Internal
performance and customer service versus peers
of doing businessand invest in
customer facing IT
Simplify and standardize the
organization & take out unnecessary
cost
Reduce IT running costs and improve in customer facing
applications
In 2009 a variety of measures were taken to improve efficiency and become more responsive…
The entire Logistics Business has been united under the new Damco brand
On average 2 layers of management have been removed throughout the organization since January 1 this year
Overall H/C has been reduced with 1.400 FTE´s since September last year
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last year
We close the books more than 5 days quicker every month in 2009 versus 2008
Our total corporate cost will in 2009 end up over 30% below our 2009 budget
Projects launched and in implementation to further off-shore back-office activities (more than 25% of H/C by end of 2010)
…which included specific measures to improve and standardize the customer experience…
- New Global Key Account Program launched for initially 35-40 customers, with similar initiatives rolled out in every Region
- Project Ying: 900 back-office and customer service functions are relocated from Chinese coastal cities into Chengdu
- Improved Customer service/ process standardization
- Reduced cost to serve
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- Reduced cost to serve
- Focused investment in customer facing IT-applications
- Integrate all back-end applications into one front-end across all major Products (SCM, Oceanfreight, Airfreight)
- Single sign-on, web enabled, near real-time visibility across all products
- Significantly enhanced self reporting capabilities through upgraded Spective visibility portal
…and the initial results of our efforts are encouraging…
Our Employee Engagement and Customer Satisfaction are both up significantly
Ocean Freight volumes are since July on par/ slightly ahead of last year
Airfreight volumes are since July well ahead of last year
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Airfreight volumes are since July well ahead of last year
Damco´s operating result in 2009 is YTD September slightly ahead of last year and our Full Year 2009 operating result will be better than 2008
Our operational cashflow in 2009 is very healthy and much better than in both 2007 and 2008
….so in closing – our advice
Simplify & Innovate?
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Innovate?Does this activity drive customer value & satisfaction?
Why should we keep this activity local or can we consolidate/ standardize?
Which capabilities are needed when recession is over?
Do we have enough passion on our organization & teams?