Damco Launches Retail Direct

For many retailers the idea of sourcing products directly from producers overseas is well known but can be difficult to execute even though there is much money to be saved and thus earned.

However, managing and improving margins, especially in times like these, has become a priority along with managing the continuous challenge of having the right products in place at the right time and at the right price.

Damco has as one of its key business areas defined "Damco Retail Direct". This is an end-to-end logistics solution designed to help retailers source products directly overseas more reliably, efficiently and with greater visibility. By sourcing directly, retailers may lower landed costs by as much as 20 per cent.

"Experience what Damco can do for you by having us arrange a trial with a small number of vendors, where we can agree to deliver goods at the same cost as with your existing solution. Damco will then pass on any additional savings directly to you," is the promise from Richard Morgan, chief commercial officer at Damco in the UK.

He added that Damco is an independent third party logistics provider, not bound to any partner, but working with many different ones to ensure objectivity and the best available price.

Overseas markets continue to increase the range and quality of the products they produce, at a cost far below what is possible in established markets. Within this context new locations and vendors offering new and competitive opportunities are emerging all the time.

Establishing relationships may not be difficult. However, keeping track of orders and new vendors on a day-to-day basis can be both expensive and risky.

Damco has a strong presence in emerging markets, including lower cost locations like inland China, India and Bangladesh as well as more than 30 countries in Africa. More than half of Damco's staff of 10,500 employees is located in emerging markets with the local know-how on to deal with customs procedures, port authorities, so ensuring the cargo is moving as planned.

"Damco has a simplified way of helping the customer select the optimal transportation mix based on days, cost and carbon rather than merely on mode of transportation," said Morgan.

"We can provide visibility to our customers' supply chain from the point of manufacture to the final destination with no IT integration required. This ensures that the customer always knows what is happening with the shipment, thus being in control and able to reduce non-value added activities and carbon emissions to a minimum," he said.