How it works
- Instead of monitoring multiple websites from multiple third-party logistics companies, Orchestrator customers will have a single, integrated, view of their global supply chain.
- Shipment related Key Performance Indicators and other performance metrics are instantly available, with automated exception alerts highlighting issues that could impact the business.
- Supplier control includes rule-based partner selection, shipment and order planning, performance monitoring and alerting, as well as root-cause analysis with corrective actions. Optimisation can be applied to individual daily deliveries, and include periodic supply chain network performance reviews and (re)designs.
If a global supply chain is like an orchestra – with its many players that must perform well, both individually and together – then Damco could be considered the string section. With its new Orchestrator program, it aims to be the maestro.
“We call it Supply Chain Orchestrator because it enables an organisation to orchestrate all the separate supply chain actions in real time from one platform, much like a conductor controls the flow and tempo of an orchestra to create perfect harmony,” explains Neil Wheeldon, who is responsible for Damco’s Global Product Development.
With the implementation of Orchestrator, Damco is moving into a new area of the logistics business, namely, that commonly known as fourth-party logistics (4PL) or control tower services. Instead of managing some of the logistic services requirements of sections of its customers’ supply chains (for example, Asia to Europe) through its third-party logistics (3PL) business, Orchestrator will enable Damco to become the lead logistics provider for a customer, managing its entire supply chain and all of the third-party logistics providers working within it.
Damco’s edge on competition
Damco is not the first 3PL provider to enter the fourth-party logistics market. With the rising importance of data and technology, it is a fast growing sector of the industry as companies seek more information and greater optimisation of complex global supply chains.
The competition includes other 3PL providers, IT companies and large consulting firms, all selling their version of 4PL services. However, Damco says it has a tangible advantage over this growing field of competitors.
“We offer something different than the competition,” says Agnes Bajger, Control Tower Program Manager for Damco. “Damco’s core competencies are in our people and our knowledge of supply chain management and design. And our customers continually remind us of that.“
“We have the platform and the expertise, and contrary to most of the competition, we see things more from an operational perspective. This is about the quality of our people and technology, which together give us the ability to detect issues and act on them, while continuously improving upon them. We don’t think anyone can deliver all of that in a 4PL solution better than Damco can.”
This is big
“The 4PL space is a very interesting new area for Damco, and one that has the potential to contribute significant new revenue streams for the company,” says Gerry Daalhuisen, Global Control Tower Product Manager for Damco.