Copenhagen: Freight forwarding company Damco is offering packaging optimization service for cargo shipments. According to Damco, the service provides potential savings in the range of 10 to 20 percent of supply chain cost.
“Very few companies focus on the power of packaging to reduce costs, said Erling Johns Nielsen, Damco’s global head of supply chain development. “Typically they’ll look into reducing air freight, increase container utilization, use larger containers or optimize the routing of traffic. But if you really want to save money on transporting goods from A to Z you should start by looking at the initial unit; the box. Ultimately this is what determines the entire set-up of the supply chain.”
Damco has teamed with Supply Chain Optimizers (SCO), which specializes in packaging optimization. The cooperative agreement between Supply Chain Optimizers and Damco currently is being rolled out globally.
“Partnering with Damco has been an excellent fit for us, said Jack Ampuja, president of SCO. “Not only due to its size and large customer portfolio, but also because of its strong focus on delivering value-added services to customers that eliminate waste and remove cost from their supply chains.”
Damco’s offering involves the company being paid on a gain sharing basis for the savings their optimization generates. If there are no savings, the company said, there’s no payment.
Steps such as reducing boxes’ height by two centimetres may mean that another 100 boxes can be fitted into the same container, saving money on the box, transport, warehousing and possibly even on damaged goods, said Damco. This kind of packaging optimization almost always contributes to reducing a company’s environmental footprint, the company said. By focusing on the box you can trigger additional savings in a number of areas.
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