Damco, the logistics arm of A.P. Moller-Maersk, has launched a new supply chain service that it says will more efficiently deal with continual changes on the demand and supply side of logistics management.
Damco’s Dynamic Flow Control allows supply chain managers to continually re-plan shipments and redefine what is the most important aspect of the shipment, such as date, cost, or carbon footprint.
The company said the system eliminates the manual workload of changing purchase orders that's normally required. The system generates plans based on predefined rules around delivery time, cost, transport mode, and carrier mix, starting at the purchase order and stock-keeping unit level. The service then operates in a way very similar to a GPS system when you drive past a turn, in that it will recalculate the best route to market when a change on either the supply or demand side occurs.
Damco said the service decreases lead times by up to 10 percent and cuts administration costs by as much as 30 percent. The company also said that improving container utilization, coupled with other reductions, can decrease costs and carbon emissions by up to 20 percent.